Evening star., 1921-04-24
BY 1. A. FLEMING.

One doesn't want to be so dense as
ment as they develop, even sc
slightly. If asked to be specific ir
the matter Of actual improvement. i
might be difficult to schedule more
than one or two happenings. but the
feeling that the worst is practically
over is appreciably growing.
The collapse of the general walk
out planned by workers in Grea,
Britain was a favorable factor, no,
due so much to the persistent and
consistent refusal of the demands OF
the coal miners as to the realization
by the workers themselves that il
would be dangerous and evil mo.
ment. fraught with no one know.
what.
Fast-falling prices for commodities
giving needed compensation for pro-
posed reductions in wages, are well
come signs of the times that must bt
passed along by retailers in helping
the return to normal.
Further recessionS may be expected
in some things, but as a rule prices
are low enough and there Is small
need of waiting, before purchasing
things one needs, on the theory OF
further reduction.
their fingers on the buying pulse and
to stock up As the stock on hand is
depleted-in this way they may avoid
losses, and it is the only way.
The buying power of the farmer has
been sadly reduced. and the same is
true regarding the southern planter.
For once one may say that a curtail-
ment seems warranted by the re-
stricted wants of much of the world
plus their inability to make payment
anI fo iy,er mi oil q
the southern cotton planter of some
of his troubles. Southern bankers
urge a 35 per cent reduction in the
cotton crop.
Gold has been pouring into this
country by millions and millions for
1t is within the possibilities that
our stock of the yellow metal might
become SO large to enSanger the gold
standard in foreign countries. but
that is a question for professional
economists to deal with.
President Harding and his cabinet
consider the railroad problem the
hardest nut to crack, and would fain
reduce wages and carrying charges
as a means of stimulating business.
On this matter the publicity Of the
day is greatly diversified. and the
opinions pro and con are tainted by
the personal interest of the spokes-
man. -.
Back of the claims for a reduction
IN wages is the undeniable reduc-
tion in the cost of living. practically
in everything but rent and coal, and
the latter is reaching out at this
time for lower levels, through di-
unfinished consumption due to indus
trial slackness.
High freight rates. when it comes
down to specific articles. are not
responsible for any slackness in busi-
ness activity. California fruit grow
ers protest higher rates, and yet
it has been demonstrated that they
less than 1 cent, and the same is
true in Florida. Some one makes
a profit greater than the growers,
plus the rail carrying charges.
Edgar E Clark. chairman Of the
wrote to senator cummins:
AT the time the increased rates
were inaugurated in August last IT
vas recognized that some readjust-
ments would be necessary. Many
Establishments have been made: We
have tried to be helpful in such ne
gotiations. We have had some Wig
orous communications from Florida
interests. stating that rates were
sitting the movement of fruits and
vegetables. but the movement from
exceeded by several hundred car
loads the movement for the same
period the previous years.
We are passing through a period
of readjustment following the war.
and many hardships which exist are
the result of worldwide economic
forces. which. it is hoped, will pro-
Eressively adjust themselves with
steadily improving conditions. 1 be-
Neve the situation is clearing"
Baltimore and Ohio system. says: II
have personally asked many large
manufacturers and shippers of goods
what effect II would have upon ship
ments if the present freight rates
were cancelled altogether and if the
railroads would move all tonnage Of
fered free Of charge.
Invariably the answer has been
that il would practically make no
difference at all in the volume of
business, because the people are not
buying at the present time"
Mail order houses that have hereto
fore taken in the cash annually in
hundreds OF millions while the local
merchants did the carry" business
know this to be a fact, and they are
not fooled on the present causes of
depression.
Improvement in Stocks.
We have had considerable improve
znent in stocks during the past week,
whether discoun.ing the things that
have happened in the line of improve
nent or simply through the covering
OF short contracts remains to be seen.
1t may be that there really is an ac-
emulation of stocks, even though it
does not look like an especially good
time to buy.
Money is in large supply, and some
little difficulty is experienced in keep
ing it working.
Oversubscription to the most recent
issue of Treasury certificates at 51z
per cent interest is an evidence of the
plentitude OF money, while the de-
posits in savings banks continue to
pile up at great rate, but money
has nothing to do with conditions,
generally speaking.
Under the ruling of the internal
revenue bureau any one purchasing
stocks or other securities for a
profit may. in the event of the ven
ture turning out unprofitable. deduct
their losses from income in compila-
ton of taxable returns.
There is a nice question involved in
sbuying for profit" When is pur-
chase of stock an investment and
when a speculation?
1t is generally admitted that the
buyer who pays for and takes his
stock certificate and locks il away
In his strong box is an investor. Per-
haps, however. he is not--he may take
1t out the next day and sell at a
fractional proht or a modest loss
1t IS within the possibilities that the
purchaser will dispose of his or her
stock before the first quarterly divi-
dend payment is made.
The trader who buys on a margin
may consider himself an investor, act
ing on some good tip and expecting to