Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-07-04
WALL STREET EXPECTS
FURTHER CUT IN STEEL
All Plants Now Operating ut About
30 Per Cent Of Capacity.
Orders Arc Slim.

announce another reduction in prices
lnhsmuch 40 the independents are
operatin;: at from 10 to % per cent
with the steel corporation plants
moving AZ about 30 per cent OF ca
paciiy, ana iuasmuch as Important
banking ana business heads believe
a reduction In prices at this time
would do much to accelerate general
business. and Increase employment.
there is considerable wonder as TO
Why cut in prices is not decided
upon.
deductions Must Come.
According 10 economists there has
not been Il time in the last forty
years when period OF prosperity has
been started except by the transpor
tai!pn companies buyini; on large
scale. Heads OF the common cnrricrs
declare that they viii continue In
adopt Il policy Of huud-to mouth mr.
chases unit! Steel prices al" reduced
Some talk has been heard thu, a fc,y
III the railroads were CONSIDERING
making purchases at this time. Such
rninors are believed 10 b.. an cnor,
on the part of the railway executives
70 hastcn action on the part Of the
s''cl interests, no real amour, Of
"hEinS can be expected before an
other cut Is announced. The railroad.
nav" had hard Shedding in recent
gcarS and they have learned Ia ,urn
II dollar over twice before spcudiu..
question Is looming up as To
whether dciatIon has Proceeded far
enough 10 permit OF the bcuirniul.
"t another period OF prosperity b,.
stimulating industry with n GU, In
steer prices. The steady improve
ment in the Federal reserve svst.,,,.s
"t'h'| statements shows that tho
n"hkerS nave the credit situation in
mana, nut here arc quite n few sor.
aP@'s sun aNiSiinE and il is probably
a Getiro on the part Of the banking
interests To see those Nra,ci1,
wounds healed before cncourarinr
t"c einbarkation of another period Of
business activity.
tn"ourngcd by promptnc>,
ne prompt!tudc being shown by
ihe United States government, I'm trv-
HhE 10 bring about a settlement, OF
The financial relations between n,
ana the transportation companies. Is
Il a"ufc" OF much encouragement 10
,'"or Wealthy Icr1lr who have been
waiting for months to set their sur
nus FUNDS 10 work in securities. This
letter feeling has already been vii
neSS,h IN the demand for speculative
railroad bonds. Absorption OF mis-
type Of investment has been poinr,
on the last two weeks The less
timid have hecn buying such high
class stocks as Northern pacI,ic
'Fcat Northern. Union Pacific. New
York Central and Southern Pacific.
NondiVi0end paying railroad shares.
such as Kansas City Southern. Mis-
souri, Pacific and st Louis and San
francisco. are also finding their way
INTO the safe deposit vaults OF those
who are willing 10 sacrifice income in
the nope of reapinS large profits on
winch taxes will not have to be paid
TO the government.
AS illustrating tho easier tcndcncv
of money and the changed attitude of
banks and trust companies toward
prospective borrowers, director Of
Two good sized banks returning from
meetings OF the dircctoratcs of the
TWO institutions one day last week
said:
To-day was the first time in many
weeks that we approved every pros
p"ctivc loan that came up before the
board for considerations"
me iact that call money held
around per cent at a time when i'm =
tcrest and dividend disbursements
and maturitics are unusually heavy is
construed as indicating that money
rates viii continue to work lower.
Some bankers believe that rates in
the immediate future will be lower
IMAM at any time since dcnation
started. And the biggest optimists
wh" VINO are working for more bust
ness activity and higher prices for
securities say the next upward move
mcnt in the stock market will hnvc
as ats basis cheap money. They cal
culatc that money will he so cheap
ana easily ohtainablc that business
interests will muster up courage to
expand their operations.