Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-22
GOSSIP OF
THE STREET

One Of the leading 6nanclers OF wall
street said that in his opinion the at
titudc OF official Washington with re-
spect to the Railroad Bill and also the
tax-revision measure has gone long
way toward unsettling confidence in the
stock market situation. Up to the
IYesent time, he added, there has been
little more than talk on the part OF the
legislators. notwithstanding the pre-
election promises Of satisfactory rail
road legislation and downward re-
vision In taxation. The latest advices
from Washington now are that the
railroad measure will not be adopted
before the adjournment of Congress
which means that there will be another
delay OF several weeks before this much-
needed legislation has been enacted so
that its benefits may be realized by the
carriers of the country.
II, is just such developments that are
now causing much Of the skepticism on
the part Of the public with respect to
the stock market. and those who have
surplus funds in the main are employ
ing them in the purchase Of high grade
securities, not caring to
change moneys on the speculative SIDE
Of the situation. The stock market ai-
WAYS carries a certain amount OF spec
of confidence throughout the country
interest has waned considerably in re-
cent months in this respect.
Tax Revision Imperative
There is considerable discussion re-
lative to the proposed action in Wash =
ington regarding the reduction in the
income tax rate. Bankers point out
that In the event of failure to make the
tax reduction for excess profits and
surtaxes retroactive to January / Of
this year. there probably would result
unfavorable influences over both the
bond and note markets. 1t is under :
stood that recently there has been quite
some buying Of corporate securities by
investors of considerable means because
of their belief that the tax rate would
be reduced in accordance with the pre- =
election promises OF the Harding Ad-
ministration, but thus far the situa L.
ton has resolved itself into one of
great perplexity.
1t is quite obvious that the Senators
and REPRESENTATIVES in Washington have
not vet felt the message from home
which was expressed in the overwhe I'm =
ing election last fall or otherwise they
might display an entirely different at
titude on the all absorbing tax ques-.
ton. This is the opinion of bankers and
business men who have made a careful
survey Of general conditions through =
out the country.
High taxation has stihed business
initiative for long time past and the
cry now heard is that the country had
better get down to peace-time basls,
and the politicians of the country
should be brought to the keen rcallza :
ton that the war is over.
Still Holding the Bag
Having held the bag for a long time
past. the American copper producers
believe that they can now we'll afford
to assume a firm stand regarding prices.
They know that copper metal cost more
than the present selling price, and fur :
thermore. they believe that 1t is worth
much more. While the consumptive de E
mand is not large at the present time
the actions of certain large consumer
recently have led sellers to conclude
that the consumers Of the metal we're be .
coming anxious about the situation and
were preparing to enter the market.
Sellers have contended that at present
levels they are not anxious to dispose