Evening star., 1925-11-07
STOCKS HAVE NOW GAINED $3.50
PER SHARE DURING PRESENT YEAR
Bigger Trading Days in Past But No Such Long Ex'
tended Rise Has Ever Been Recordcd-N".
BODY Predicts Turning Point.

huge speculation IN stocks which the
member banks were hndins II NO
longer feasible to finance by them
selves. But the latest reported tota-
Of rediscounts with Government Sc
curities AS collateral. these repr.-
senting financial in distinction from
commercial loans, was still very far
away from what Il was in imitation
times. The total was $3.50, 900
against The maximum, of - S3e,47s,
900 IN 1919.
The great Wall Street speculs tion
is being handled along with trade Dc.
mand., which, Judging from the ac-
customeo indices such as bank clear.
inss and railway car loAdinSe, are
pretty well at maximum. Yet there
IS an investment surplus Sufncient to
keep rhe bond market strong and TO
allow for continued loans TO Europe.
Lending 70 Germany Feature.
The most interesting feature in our
international lending is the way
American capital is going into Ger
many. " u doing This along three
lines. hrst, through the absorption ~
German bonds issued by states, nnu-
Inequalities and industrial concerns:
second, by the granting of private
credits. ard third, by the outright
purchase of German manufacturins
plants and mines. The end looks as
II it in going to put Germany IN the
same relation financially to tn. United
States as the limited States was -
England when we were undergoing
our postwar reconstruction in the
1870. and 1ss0s.
Franc Tumble. Again.
The franc took another tumble dur
ing the week. and AZ ore time sold a,
low as 3.ss cents. as against the rec
ord low nf 3.42 IN March. 1924. This
wa. the result Of genuine Sea re on
the part of French capital, which was
exchanging It's paper currency hold.
other countries. An element Of SUD.
port appeared ~ the critical jtncture
which may have been supplied by the
French treasury with me aid ~ the
American los n of a wear and half
aRo, or may have come simply from
an extended short interest Al all
events. the latest Bank 81 France
statement, showing a note circuls ton
of over 4s, 900 900 600 francs. the lare.
est on record and within less than
5000. 100000 cf the new maximum
hxed last June. indicated the prosre So
of inhation in France and the realit,
of the crisis which IN. new govern
ment ts facing.
Tax Reduction Gossip.
Wall Straei was interested toward
The end OF the week IN me outline
nr proposed tax reduction more rha n
II vas in anything else II saw in
the lowering Of the surta xes from, 2
high Of 40 10 = high Of % per cent
The possibility Of rich investors re
turning 10 the market tor taxable
securities instead OF locking them.
selves up In tax-exemDt bonds. "
saw even more The possibility OF q
vast profit-takins. provided the new
tax program goes through. OF the
part nf wealthy men who have had
biz paper gains pile up in recent
Years, but who for tsx reaS hs W
not felt Ike xraspins them.
There vas. indeed. The suggestion
that this whole boiling market. with
its unnatural Accompaniment OF low
money rates and its numerous plans
Of capital split-ups and extrs divi
dends was setting the stage for q
great distribution later on
'CopyriEht. 1o"Sh