Evening star., 1922-04-30
BY 1. A. FLEMING. :.

Jhere mas Deen redCtlOn IN SeCu-
rites during the past week, at times
taking on rather dangerous look.
but finally passing away without
more than scraping a few points of
the profits of the paper and. perhaps.
causing little more caution.
However. there is no question but
what the financial world Ia still look
ing upon the situation with eyes OF
hope and encouragement. that the
omnipresent hopefulness Of the Amer
leans, their belief that matters will
be eventually worked out, that they
must improve. Is dominant.
This confidence, and few who have
any insight into the sentiment Of
New York financial interests. will
dispute 1t, Is based upon easy money
and the chances that rates will be
The crop prospects have barely de-
veloped in certain lines. but the
American harvest is generally a
thing to be counted on year after
year.
The foreign situation is fraught
with much that may be dangerous,
nor is the United States taking any
steps that might relieve or prevent
the danger. It's splendid isolation.
Endorsed by the 100000 majority for
President Harding still continues, nor
is It likely that sentiment will per-
NIT the government to make any
movement in the interest of Europe.
Perhaps Mr.. Morgan and his asso-
ciates, who have dared when others
have not, may find a way of help
ing where help is evidently sadly
needed. Germany sadly needs assist
htSt hn net honest
herself and establish that integrity
before the aid will be forthcoming.
In the struggle to regain our own
position we have been handicapped
by demands on the Treasury. and
the fact that different blocs in this
and that interest must be satisfied
or there will be defeated repre-
sentative or senator in this or that
district. Politics have delayed need
ed legislation and threatens to force
action that will further handicap re-
covery.
Business is slowly improving. but
consideration of this fact is not given
serious thought by those who hold
that broad. higher market for bonds
is sure and that stocks will do much
better throughout the summer
Based on Easy Money.
This confidence and hope in the
summer months is based entirely on
easy money, coupled with the fact
that several Iow-priced railroad COM
panies and number of important
but independent steel companies are
on the eve of a merger. and from
this merger redivivus there is no
telling what may happen.
Easy money is the natural result
Of the unsettled, unusual stock busi-
ness conditions prevailing at home
and abroad.
Easy money started year ago. re-
suiting at that time from the refusal
Of investors to buy securities and
from the depression in business gen
orally, when about the only desire for
funds was from corporations endeaT-
oring to pull themselves through
and many of them had a hard time
doing it-others did not even try.
Moreover, at no time during the
great period OF dehation was money
close, although 1t may have seemed
so. 1t was a case of no money for
the overextended corporation or in
dividual, company or firm and plenty
OF cash for the men with the credit
or collateral.
The rise in liberty bonds marks .ne
cumulative period of money. further
evidenced by the gradual reduction
in rates on government financing
from to 3is per cent.
1t Is the belief that money will
continue plentiful. that even lower
rates on BOSeIHiieut Hho'e "
develop and that there will be
resumption of the strong buying
Of bonds with incidental reflection on
stocks In the market.
Liberty bonds will probably pace
the advance when it comes.
Dare an E;stimate.
C. F. Childs & Co of New York
city have such confidence in the
summer market and fall. too, that
they even dare to predict the market
value Of liberties as of year henee
on May l. 1920. first liberty ANS
were quoted at $50; May l. 1921
(pfesent), about 1886. predicted q
year hence, 101.s14.
Second liberty AIS sold two years
Ago at $50. now 1914; predicted a
year hence. 10000. oo.
Third liberty AXIS sold May !. 1920,
at ss.72. now quoted at ss;st: pre-
dicted price May l. 1920, 1o1.19s.
Fourth liberty ANS sold, May !;
1890. at $3.50: now; 1892; predicted
price with May !: 1929. c,,Ga. loa;lSs: -
the price Of liberties. Childs & Co.
predict decreasing prices for the
Treasury issues paying 5% and ~ per
cent; holding that the 5&s OF 1924
will decline within year from the
1880 Of sodayi to Sron fso tna5
1ol. $50, and that the ANS of 1925 will
70 from 1870 to 1915. while the
tXs of 1926 will hold about steady at
present values.
The nrm IS very favorably Impress
ed toward bonds. with circulation
privilege. whatever the rate of in
terest. holding that circulation proft
is more obtainable in low rate
money market than when rates are
high.
Local Securities.
A study Of the local stock table for
the year, up to last night, shows that
the entire local list, almost without
exception, Is near the top as to prices.
Members Of the local stock ex-
change are almost a unit in their
predictions regarding action in shares
and in their belief that higher prices
will prevail.
While they believe that the propos-
ed intangible tax increase will operate
against bond interests by the added
traction. they recognize the further
making strong fight against the
injustice Of the added tax schedule. as
reported by the conference committee.
and that they hope to be able to bring
sufficient pressure to prevent adop-
tion Of the report.
Chesapeake 4 Potomac Telephone
The earnings of the Chesapeake
and Potomac Telephone Company con-
tinue to show steady increases in
both gross and net earnings.
For March: 1872 , the he total opeTasinfE ing
with S4:7.471 for February of this
year. and $413.6S0 for March, 1891.
Total operating expenses for March
last, $3e8.7l3, leaving net operating
revenues Of $132.6s5. as compared
With slss.s5s for February last, and