The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-08-03
Behind
The Ticker

| NJ" fOHH-As the recent ar
ton Of the stock market attests.
not all observers Of the course of
world events are in a blue funk.
A letter just issued BY New
York stock exchange member firm
benjamin. Hin q Col Is worth
examining for the reason that Il
makes out a pretty good case for
those who cieave to the differences
TO be drawn from fundamentals
rather than permit all ground for
optimism to be blacked out by
fear
II Is held. for instance, that IN.
vestment policy must still he gov
erned by economic fundamentals,
despite the depth Of discourage
ment. And the thought Ia ad-
vsnced that 1t IA Illogical 10 per-
nit war uncertainties to spread
their confusion to the economic
field. Whether the outcome Ia To
be a quick Nazi victory, nego.
tiated peace or a continuation Of
the war. the outlook for this coun-
try Is viewed as one Of greatly in
creased expenditures on armament
with a pronounced effect on our
industrial production.
AS 10 the spending OF some s14.-
900. 000. 900, slready appropriated
or in prospect in our sggregate
defense effort, these points are
made: First. that il will not be
expended in lump sum. with
swift reaction following. but will
gather such momentum over pc
Rod OF years az TO be a sustaining
influence on business. Second. that
the urgency OF our defense needs
means that the cost will not be
viewed too narrowly. for the coun-
try IA concerned about preserving
itself regardless Of expense. Third.
that under this new emergency the
demands Of labor and left-wing
New Deal groups wili not be No
alphabetically received by the
country.
Coming down 10 brass tacks. the
letter says: Since selected eoin-
mon stocks In an infiationary war.
time period are A better medium
than either cash or bonds for
preservation Of capital and DOR
appreciation. We believe that an
opportunity Ia Al hand for the In
weston 10 acquire at advantageous
prices securities that will Ultimate
~ benefit from war preparation.
The investor should also con
tinue TO dispose Of low-yielding
bonds. securities Of companies un-
able 10 pass on the higher costs
Of an lnflstionary period. those
making luxury items. those having
important foreign interests and
stocks otherwise adversely affect
ed In wartime
In that sweeping program of In
vestment action there IL something
just = little TOO strongly reminds
cent Of what the markets tired 10
DO last September. sith = short.
lived boon IN war babies" ard q
sharp dfop In nvsstmsut-grads
bonds. The STOCK market made
swift chsnge-oyer 10 a wartime
ssi-up. only n discover later that
the Var stocks we're . BIT too
touchy for safe handling when u
came To recurring peace rumors
ard threats that Nazi military SUE
essses might bring about an early
ending Of the war
II Investors and traders knew
positively how long the war will
last, what the outcome wiH BE-
with a crushing Nszi defeat the
snd most 10 be desired. Of coarse
and whether the proponents Of
the accustomed economic order %
things viii regain sway In the
United states. then We might sx-
poet them 10 % the logical thing
stock rnarket-WIss. But while IN
certsinties continue 70 loom -
large. with implications that reach
20 deep and spread - fer. Il seems
most likely that markets will con
tinus IN b swsyed by sltsrnats
hopes and fsars.