The Western news. [volume] (Libby, Mont.) 1933-current, 1939-05-11

III pUff&iIUi SffEuttUff.
WASHINGTON.-A very shrewd
stock market operator, recently in
Washington in connection with the
governments concern over what
might happen TO our security val
fues in the event of the outbreak of
war in Europe. was talking TO an
old friend
If war should break out in Europe
tomorrow he said, there will be
q terrible crash in the stock market.
II you want to make big profit
without any trouble whatever, wait
for that crash. Then buy any good
stock 10 the limit of your financial
ability. Hold il little while and
then sell it.
Most of US remember something
about what happened in 1914. When
the World war broke out the col
lapse of the stock market was SO ter
rifle that it was necessary to close
1t. Ignoring what the real value OF
stocks is, or was, the performance
then was remarkable.
Actually, most stocks which
dropped to record lows in the au-
tumn of 1929 afterwards made rec
ord highs.
Some folks are pointing out that
this logic is faulty now because of
the take the profit out of war"
movement. They are saying that
congress would impose such terrific
taxation, in the event that the Unit
ed States got into the war, that no
profit could possibly be made.
Var in Europe " ould Mean
Unusual Prosperity Here
This is obviously true as far as
prospective war babies are con-
cerned. There will probably be nc
period, should there be another
world war, resembling, from a
financial viewpoint, that which ex.
listed shortlys after the outbreak OF
the last World war, up until the en-
try of the United States into that
war nearly three years after it be-
gan.
Neutrality laws today might pre-
vent that sort of profits. But it is
just possible that they might not.
The theory in Washington at the
moment is that the administration
would not be neutral in thought
II world war should break out in
Europe tomorrow. Best judgment
today is that the administration has
made it perfectly clear that in the
event OF European war this coun-
try would be in strong sympathy
with the democracies-Britain and
France-from the first day.
If this is true, and it is difficult
to deny it, the probability is that
there would be war babies" It is
true that they would be subject to
higher rate OF taxation than ap-
Piled in 1914 and 1915, but it is
scarcely reasonable to believe that
they would be taxhd 10 the point OF
diminishing reNaRns.
Leaving the SxNT babies aside, the
best financial opinion is that war in
Europe. would mean extraordinary
prosperity for the United States for
substantial period-prosperity not
only for the manufacturers of war
supplies, but for wheat and cotton
farmers, for everybody
Later on, assuming-as most OBJ
servers do-that the United States
would be dragged into the war, the
taxation might be terrific. But, Just
as the rain falls on the just and the
unjust, so must war taxation fall.
And most business men figure that
high taxation and good business is
better than low taxation and poor
business.
So maybe the able fnancier is
right
Primary in Mississippi
Sure 10 Be Tops in Interest
Late in August most of the folks
in the country will be more interest
ed in the pennant races and the
European situation than in domes-
tic politics, but here in Washington
there will be more interest in the
Democratic gubernatorial primary
in Mississippi than anything else
unless of course there is war in
Throne nv hat fiona
The reason for this is that the
two contenders for the governor
ship have made the New Deal the
issue. Former Gov Martin Sennett
C'Mike') Conner is really response
BILE, for if he had not begun attack
ing the New Deal it seems likely
that local issues would have pre-
dominated. But once Conner began
his attack his opponent, Paul b
Johnson, naturally took the other
side.
To make the situation more com
plicated Sen Theodore G. (The
Nam Bilbo is supporting Johnson
Sen. Pat Harrison has not moved
into the fight as this is written. but
his friends say that he will be found
on the side of Conner, as being on
the same side as Bilbo in any fight
lis unthinkable for Pat.
Conner ran against Pat Harrison in