The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-12-30
Business and Securities Half Way
Between Depression and Prosperity

in getting ample supplies OF bituminous
coal this wilmer. The car shortage Is
diminishing somewhat. Ample supplies
Of btuminous coal are being produced,
suggesting lower prices. The mischief
of this situation lies in the fact That
It will again be to the advantage OF
both miners and operators to close the
mines for time. The difficulties
which brought or the strike last year
have not been settled. There Is serious
danger Of another strike In the soft
coal fields.
Everybody IL worrying about the
political situation. There Is talk OF
radical legislation during the coming
year Most of this Is merely tho echo
from campaign speeches. 1t may be .
noisy year. Both the Conservatives and
the Radicals have veto power, but
neither Is strong enough to push thru
any extreme measures Of It's own. The
only kind of legislation that will really
ba enacted is that which Will appeal
70 members Of both groups. Already
the Federal Reserve Board has ISSUED
4 ruling. admitting a large amount OF
agricultural paper for redise6uht In the
Federal Resefvs banks. The huscle
Shoals problem Will probably be settled
either by sale to Henry Ford or BY de-
velopment on the part OF tho govern
ment Itself The Soldiers Bonus will
probably he enacted. although no agree
ment as to the terms or means OF rails
ing the money has yet been made. 1t rs
improbable that there will ne any In
crease In tho amount Of business taxes.
The Political Aspect.
THE political aspect has frightened
many stockholders. but 1t is entirely too
carly TO nc worried. The thing TO wat h
is Fundamental conditions. We are still
In a readjustment period. This means
that sooner or later we shall work
toward better prosperity. 1t Is true that
Industrial stocks are much higher than
a year ago and are certainly not the bar
gains that they were. However. as l
have already stated, certain limos or
Industry arc Just eating ready TO go
forward. The Industrial market Will be
'spotty but there are a great many
Issues hat should do better In this conn
Ing year.
"fhc rail group Is. relatively. not 90
far advanced as the industrials 90
not believe rails should be bought in
dscrmi nat ely, hut the rail- average Will
follow up the general market. l am
much more attracted to the lons-naui
roads than To tho shorter lines. Ihe
motor truck is a feeder for the former
but a competitor Of the latter. Copper
stocks have really not started VET out
tho statistical position Of the metal 10
far better than II has been for long
tine Coppars certainly are selling n
bargain levels.
Money conditions should continue
good. There Is no question that inc
banks ar. in a strong position The
Federal Reserve banks today have re-
serves eaual to about r. per cent OF
their note and deposit liabilities. INC
reserve required Is between IS per cent
and 80 por cent. 1t Is true that ~heh
foreign countries begin to get on their
feet it will he necessary to SEND mucn
of this gold back. For the present, now
ever, this gold represents the OASIS on
which a considerable expansion OF creu't
can be built IT guarantees to US reia,
lively easy money rate until heavy golo
.cxpnrts arc resumed. During the COM
ing year borrowers mead have little rear
Of a lack OF funds for all Legitimate
purposes and this also applies 10 lo"S
term moncy--that Ia. capital Tor perrnA-
mont investment Mortgage rates our
Ing 1928 should work lower Iooa'
the average rate Of real estate Hort
cages throughout the Unlted States 10
between per cent and per cent mo
time is not far away when this average
gill stand between per cont and per
cent
Easy Money Aarfst-
.'Or course. the ease OF the money
market Is distinctly favorable 10 ioiIs
lime bonds. There - point IN the
LIslness cycle when industry becomes
so active that money ~ ahsoroeu ~
t-ade. When this occurs honds arc 500
and develop a downward tendency. THIS
raint in the cycle has not yet appeaLs".
,,a-ao,,er history shows that following
~. civil var bond prices, barring tom
nr,,arv fluctuations. rose 70 "a long
n,riod RI wears, the advance cuirn'na'-
mo ahout 1900. From this point, &C.
cont was gradually made 70 low
roint NJ the end Of the European wal
s;nc. this low point. history ~ repeH.
40 uself bonds having reached MO.
'rIe ground, hut still far below the syn
or IL. basis Of the 1900 period. Al,
hasa factors suggest that well seIec'eo
rcnds. both municipal and corporation'
are distinct purchase
bonds and money" concluded MI
1,ab.on. "are certainly SOUND fac'ors
N the situatior. AZ for business az
whole there IL no doubt that II VIII
average better this coming year 'han !.
Aid IN 1922. This does not mean that
,h.re VIII be- any boom. hut that there
viii ho plenty ri rn"ney-mskinE oppo.-
;uuitics for these who know funhaWen-
tai conditions"
General business according TO The IN
d,x Of the Bahsonclart stands al only
-; below normal. the same AZ ~ooH