New-York tribune., 1921-03-21

oespiee the weakness In special is
sues, even the railroad stocks. broadly
speaking, recovered part of their losses.
The market place was still essentially
romping place for professional spec
ulators, but commission houses re-
ported very slight increase in inter
est on the part Of outsiders as the
curve of prices began to swing up
ward.
The key to the future Of security
prices, remarked one cage of the finan-
cial district, lies in the fluctuations
of commodity quotations. There is
now no equilibrium of prices. In re-
lation to other things, some commodi-
ties, such as rubber and sugar, are
cheap. The next step in the logic of
this observer is that the securities of
companies dealing in commodities that
are disproportionately depressed lie
on the bargain counter The argument
is interesting, and vague enough to
permit each speculator to work out the
details for himself.
Wonder what the success mapazines
are doing to carry articles about, now
that we have passed through almost a
year of depression.
In the career Of CASTOR, Williams &
| hn t-%o - 4l \
trade hopes of America have been to
large degree epitomized Back in
1916, when this company was formed,
it appeared that America would become
the shopping center for the whole
world. In the flush of excitement
caused by the nations new position as
a creditor nation, whom the whole
universe was looking UP to, observers
were fantastically uncritical toward
the most extravagant statements of
possibilities. Since the armistice, with
the exchanges of the Old World dis
organized and in the last year with a
qulckening of the period of readjust-
ment, accompanied by depression and
of the days of the boom period have
evaporated. The appointment of re-
ceiver last week for g., w. & w. tells
the story Of what has happened. 1t
is the elimination of tale regarding
the deflation of a war baby. As foot
note, 1t should be added for the benefit
of the literal minded that the foreign
trade of the United States did not shrink
in proportion as the fortunes of CASTOR,
Williams e. Wigmore waned. Foreign
buyers have never ceased purchasing
here in large volume, despite the handi-
caps and factors making for contrac-
ton. G., W. & w. happened to acquire
some of the least desirable of modern
assets, including Russian investments.
Fortunately, modern view Of the
economics Of gold tends to preclude
the possibility Of nations becoming
misers. The state of the worlds ex-
changes-and behind it foreign trade
is now such that America is in a po-
sition theoretically to call upon vir-
tually all nations for gold. Within a
few days s15oOO,O0o to S20,00O000 of
new yellow metal has gravitated here
In small amounts the metal has been
arriving under special arrangements
from India, Sweden, Australia, Great
Britain, France, China and South
America. To the superficial this influx
might suggest quick and easy solution
of the whole question Of tight credit
AS matter Of fact, the new gold might
cause an almost imperceptible relaxa-
ton. But in the two years before the
United States entered the war Ameri-
cans learned that an increase in gold
holdings out of proportion to a gain
IL production might be q bad influence,
upsetting the equilibrium of prices
In 1915 and 1916, when this country
was drawing heavily on the Allies for
the metal in payment for war supplies
this country learned what gold infla
tion was. A small inflow of gold will
have q good sentimental effect In this
country, but an inordinately large in