Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-11-20
A FINANCIAL REVIEW

that as weak holdings have been
thrown overheard they have been alb
sorbed by stronger interests and no
doubt this is true. Still, the fact re-
mains that there is only a remnant
left OF the bulliSh enthusiasm which
was such pronounced feature dur
ing the summer months and that TIE
buying power in consequence, for the
time being, has assumed rather dwrf-
ed proportions. While several reasons
can be ascribed for the present retro
grade movement those who have stud
led the situation very carefully be-
lieye that false move was made last
summer by the friends Of special
stocks in advancing prices to such ex-
treme heights in face Of the prolonged
rail and coal strikes, which were bound
10 seriously cripple the profits of the
various companies. The present de-
cline, therefore, is simply putting the
market back to a more solid footing
from which, in time, it will be able o
make fresh start. There is good req
soning in this, but it. must be con-
fcssed that the political outlook IS not
altogether inspiring for constructive
legislation and this is naturally Great
ing some uneasiness among holders
of securities generally. Already there
is talk of seriously modifying the
/ Transportation act upon which invest
ors have been placing so much conf
dence 10 make the bond and capital IS
sues Of the roads stable investments.
Surely the vast number Of people hold
ing railroad securities arc entitled 20
proper protection from the Govern
mert TO assume this the carriers
must have fair hauling rates for both
freight and assengers-Suiiicicnt to
net 10 per cent to 9 per cent re-
turns on replacement values, which
the act practically guarantees. Ger
tainiv this is little enough, especially
when one considers that Investments
the world over now weld returns 80
much greater than those which ev-
isted prior TO the war. If the coun- /
try is to have prosperous INES rs
vast system of railroads. upon which }
so much depends, must be helped, not
handicapped. It is hoped, therefore, !
that our law makers VIII bear this IN !
mind and act prudently. The bonus
menace again threatens to become a
live tonic Of discussion and there IS .
possibility that the measure viii once F.
more be put through. II so, the ,
President can be relied upon to eXer- I
ciso his veto power for the second /
+ir,-o unless . sales tax is some for IS /
adopted 70 provide the necessary rev /
crues to covesr cash payments. How !
o,-or urc2rtaintvi is always bad tor the
stock market and this is what Is con-
fronting it at the present tine. 20
,or ar general business Is concerned {
iho outlook * still encouraging Nhi'e
ITO shelves Of merchants are not bar" (
tboro are very few instances whore
nroJue+ior EXCEEDING the demand nor
is thcre likely to be for long time 20
come. 100. o,
,oa6,. Given business a fresh and pos
live impctus. largely because the CN-
c,,.t,i,lv which blockaded transa"-
tiors in many industries has been re-
mo-od. Our textile industry IS &
ceeainrlv active. and many mus DOL
Cot-nn and wooden arc working MI
f;r,o and realizing handsome. prohfS'
7J-.,.os TOO. in those industries nave
toon advanced so that labor IS Shar-
i-o tho nrosreritv prevailing in THIS
oroa+ Industry. the second in lmpof-
fonoo IN the UnitedStates. The rise
IN co4+on. due to worldwide scarcity
nos been an additional and poWerl"
IN The agricultural sections of the
vcst different conditions prevail.
ra,,nore are suffering from low prices
G. come Of their products and are
frealv cXDrcssirc their discortent IN
,.orio,.s vavs. not the least being the
/ rorov,e1 trend toward radicahsm N
,,o1i+:ce co,,nled with their Immature
! IDEAS regarding finance, cap!lai 'S'l.'
otc. Nevertheless, the lnduStfial 80
items of the West are prosperous nc
,r;ras are steadily increasing their pro-
ducts factories are busy and mer-
GIANTS confidently look forward
soosor of LARGE distribution. Ban'-
inc, conditions in all parts Of the eoun-
wv re exceptionally sound. The
great steel industry, which aiiecVs 'ne
East more than the West, IS in a very
encouraging position. Our steel m'llS
T ere now running ct about Is per cent
Of capacitv. the highest ratio OF aAy
ncrioI during the last two years
Prices for steel products are also us
/ ing and our large concerns are con-
fdently anticipating period OF re-
| newed prosperity. &C.,.
Needless to say such conditions
| mean great activity in transportation
! Many Of our railroads expect to be
taxed TO their full capacity, some be-
/ ing so evenat the present moment
The railroads viii consequently be
LARGE purcha sers of equipment, etc,
in order to accommodate traffic and
bring the roads generally up to former
standards Of efficiency. 1t should be
/ remembered that for SIX or seven
years covering the war period this
CARD OF THANKS