Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-04-09
ABUNDANCE OF CAPITAL
IS SEEKING INVESTMENT
Conservative Financial Inter-
cs's Continue TO Oppose
Speculative Movement.
FOREIGN FUNDS COMING HERE
SAFETY or American Institutions md
Enterprises Continues TO Attract
Funds From All Parts of the
World.
FOREIGN FUNDS COMING HERE
By Walter II. br0,yn.
III f'F"N"'
iitor New York Commercial.


written for the United News)
NE" YORK, April Elm the most
active stock market in practically
TWO years the tendency OF prices has
been, steadily upward. According to
tradition. reactions are due but they
have come about only momentariiy
and then only for particular groups
of stocks. How long the movement
VIII last no one can say. but for
the present at least the bull mar
kct Is here and practically on schcd-
ulo time.
Readers OF this column will recall
the prediction made some three
months ago that the advent OF spring
would see an extremely active mar
kct. II II did not assume runaway
proportions. This reference Ia not
inade in any spirit other than mere
~ 10 check up the manner IN which
conditions have been shaping them
selves for some time. The main
cause Is the abundance OF Idle capt.
hl' which Is bound 10 seek invest
ment In ono form or another, while
the secondary cause IN the Improve.
mcnt Ia general business
Oppose Speculative Wave.
conservative financial interests Of
the country have been doing their
best TO hold In check 4 wave Of
speculation which they felt sure
'''N Ac!I'" inc. constant aCCuinula-
ton OF idle funds. II is ono reason
why the Federal Reserve banks have
refused To further lower the r.dis
count rates. Bu; tho best tina, could
D." done AZ these bankers well knew
Was 10 hold the situation in check
onls temporarily.
quietly but gradually foreign
FUNDS hay" been moved to this coun-
try. regardless Of the loss I'm e,
hG,b
escaping excessive taxation abroad
ana ny the profits In sight from in
F""tiH"nts here With our paper cur
'"noy on fun gold bnsis. every-
'HinS represented by American mon
~ IS AFRO upon gold basis go ,na,
foreigners who were In Il position to
ni!nI or send their money TO Amer
~" t"u'd una no safer place TO put
h'H Deposit Incrcn>- shown.
mus " II Interesting TO note from
tho Fc6cral Reserve statement tina i,
f"'hc o2j banks reported on March
81 an Increase OF 100000 900 I'm de-
roSlts over the corresponding week
In lt2l, Will" loans and discount. Of
s9o banks amounted to so.so2 900. :
oop. a. compared With 3lg5oOOoO :
600 for the corresponding week ~
INC previous year. Whether from
foreign sources or release of frozen
Ioihs' or from other caus.s, there
Was ana Is "a large amount of CAM
Ia waiting TO DC pu, TO work.
me course of the stock marie,
ever since last August has brcn
creeping upward without apectacular
feature The Professionally strong
hNHertonc has had It's psychologlcal
erect upon general business. In
. c!dcnta!iy. the bond narlc, az +.
barometer has again been vindicat-
." HeEer In the history OF the mar
~ mas IL failed y steady move
M"ht In either direction for any
length Of time inevitably fore.had.
o"h similar movement in the stock
nnrket TO come sooner or lat.- rh.
reasons for this have been previous
- d"scr!ned. and need not b.. gone
INTO now, but II may be noted that
IN. Dond market has not yet changed
~ course and In the nature Of things
the Upward movement OF stocks VII!
continue at least until the high-divi-
cchd-paying special,ics are Welding
around per cent.
starts Machine Moving Agntn.
~ may be then tina, the underIv
iiS strength OF the stock rnarkc,
furnished the impetus To start The
economic machine moving again fnr
IL cannot now be denied tina, IN has
HP'eueN UP considerably and in sim
p'oS reSS!ng. The recovery in the
steel and iron industry gives ,hn
best evidence OF the recovery in
era business. 1t may be thar ,bo
n"om IN stocks has large clc,non,
OF speculation behind II. but ,bere
Is nothing speculative about the In
creased demand for iron ana s,aa,
winch Is SIX months in adr,, =.