Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-04-15
caution IS NOTED
| N:BUS|NESS WORLD
Europe's Unsettled Affairs
Having Vital Bearing on
a. American Markets.
CONCERN IN CROPS, TOO
How Railroads Are to Finance
: Huge Equipment Purchases
Puzzles Investors.
CONCERN IN CROPS, TOO
BY GEORGE II. HUGHES

Special Dispatch TO The Star.
NEW YORK, April 14.-Hesitatior
marked the weeks movement in both
Inc speculative and investment mar.
kets. ~
spectators were at loss to decide
whether business improvement had
or mad not been properly discounted
ana Investors, uncertain as to the
future OF the money market, though,
IL pest to await Developments Mer.
chants and manufacturers con fronted
, with an expanding demand for their
; goods and products continued to con-
quot their affairs with conserva ton
and caution.
Ihere was no change in the bank
ing situation. Credit has been avail
: aoIe In al! reasonable Quantity for
( tnose entitled thereto. The resources
of the federal reserve system re-
NAMED practically untouched
Whatever those conditions fore
shadow, 1t is not collapse either in
business or securities. This brings
US doWn to calm consideration OF
possible unfavorable Developments.
: Conditions Abroad.
First among these must be put the
and Germany. the fanatical outbreak
on the part of the Russian soviet
eove1nment manifested in the cru
! sade against religion and the serious
domestic political situation in Grea,
Britain.
At present, as far as the markets
are concerned 1t would be inferred
that a solution of the continental
problem was being satisfactorily
Their from out the N9.hihg eEuid be far
Is not spectacular, but its prolonga.
ton puts a crushing load on the en-
. beavers OF those working for the res
toration of economic as we'll as po-
Iltlcal peace and no one has success
fully maintained that America can
with immunity go on her way heed
: less OF what haIiens in Europe.
=. Just now concern is manifested
more in the south and the west. where
foreign markets for cotton and wheat
than in the Industrial east, where
domestic prosperity for the moment
attracts the greater attention.
Crop Situation vital.
The crop situation must also be
borne in mind by those who would
lorecas; the economic future even at
home. Government reports on the
condition of winter wheat were any
thing but encouraging. An added un
certainty is the spring wheat crop
phdutiHs VI WHICH Is ABOUT Inree
weeks late, due to the backward sea-
son.
:, Finally, there are the railroads.
Transportation is just as essential to
, prosperity, in America as agriculture
and yet the demand of the farmers
for lower rates and the demand of the
Investors for a return on their money
commensurate with the risk resemble
the celebrated irresistible force meet
ing the equally celebrated immovable
body
/ Certain it is that investors are in
no rush to purchase railroad secur-
tiles, How the railroads expect to
do all this financing has never been
clearly explained Probably. a good
deal of 1T will be done through the
sale OF equipment trust certificates on
which the risk to the investor is at
q minimum. Some of it can be done
by the sale or pledge of bonds. but
few roads are in, position to attempt
TO sell stock, even preferred.
Railroad Stock Outlook.
Wall street still processes to expect
a bull market in railroad stocks and.
of course, speculatively speaking, it
ment standpoint it Is hard to see any
reason for the purchase Of railroad
stocks when sound industrial pre-
ferred issues can be secured to give
/ The argument is that railroad car
headings are at the highest rate on
record for this time of year and that
earnings are bound TO be good. But
Il good share of these earnings must
be put either into the new equipment
or be absorbed in the additional
charges on money borrowed to pay
for this equipment. 1t is also doubt
full whether railroad boards of d.
rectors will care to take the risk of
dividends, in view of the
political situation.
Is il possible that government
ownership is the only solution?