Show Speculation Breaks Prices I. I of C ij Orgie of Spending and High Prices d Showing Decline Break in iii i Foreign Exchange Throws rs Many lIany Commodities Into Market Metals W Wool and Sugar in Strong I Position Poston Many lIay Views on Situation By Percy M. M Cropper t A o tins lias la been pointed out on numerous occasions in 1 we tue past jot iu iuA t f A the tho first frt big break in stock speculation and commodity prices came during the tlc week wee and as nc usual everybody broke for cover There was n the tho sual timidity r that follows a break brek but it was ivas only a gentle awakening that the great spending and ad speculation oto that has lias he been en in progress for years vears is changing Jt It simply means that those who lo have been skating on thin ico ic must mut get close to shore that it is time to trim sail and nd be ready for squalls that will wil come up from time to time until financial affairs affair of ofal nil all al kinds arc more equalized It is declared that there thero is nothing to fear but only by br economy and hard work can cn progress bo be ma made e in every line I e TN I r i s 4 tn to wrt Bno of nf business busine and the tile w VUO o earners earner as well ell wel her was but but one one- oner one main maht lne il cause cuso for fol r thc thC break this week and that was that the tho operation of or tho the brakes brake that tha tho the has been sPOOL sPOOL- government go ament putting on arc ao beginning to show v their ef of- alou feet foeL Tills This is duo due to tho the raise In Iii tile the fc federal fodora discount rate This ma made mado e some of tho the Profiteers j liquidate their obligations obliga obliga- lions and ard throw products on the market ad It also checked some seine soe of or tho the financing of or foreign shipments and consequently a a- n greater grater demand for Cor cash between the tte United States n and foreign countries This resulted in a rush which was o a great extent overdone o down clown to and sent tise pound sterling the l Invest price o prIC in its is history history- I Time Tito report that England is to to withdraw withdraw withdraw with with- draw somo some of or its Is paper pr p money caused to stiffen aUten uj up u at atthe atthe atthe the very ver close cose or tho the Demoralization DemoralIzation morl of or exchange rates had its It effect Jaton on on the tho stock markets ets as welL weIL as the produce markets Although Albough many will wH got get got hurt they havo have had any ay many of or warn warning InS There never neve has b been cn a time In history when what would in the future futuro jUs has been een voiced as av at often oron and persist persist- There wilt will be bo moro moore or less of ot such times throughout the tho to present resent year it is r. r probably not as a violent but hut 71 will wi bo be b due to a a. general Sen- Sen gen gen- eral erl easing casing down dow of ot prices Among tho the things that ta stan stand stano out at atthe tho the end of the week 4 is signs of at what occurred and ant it is o of or tho most potent si signs s of or relief that thosa who work on salaries hav have have- seen In a a. long longtime IonS time is tho the reduction of or flour at L 1 Minneapolis 50 cents a. a a barrel tho the rc- rc port ort from Canada that e ue to the lack of c an a export market markot of or tho the food- food R stiffs gathered for Cor t purpose will willbe mi h be 10 sold Bold at home that the t live stock ra kot at at the he he end of at the the- week shows a it decline dAlIne Inc dL-Inc of oi 25 5 cents to t AS much mach as siz 12 XV hundred in prices that lat the tho grain marlc marke 8 s show a 1 d decline which will ivill wi b ext extend nd further r provisions are ae also oft off nd butter and e eggs ga arc sho showing show show- log ing a n decline in most c cities te Besides these tho tilo woolen manu manufacturers have been arn l by tho tIle government So Goods Good In With a strong demand for goods of ot all aU a shortage of Dr labor the continued high prices that high arc being paid for 01 everything and md tho the empty empt shelves it steady P up conditions before ber before be be- fore r p pric prices ica go muc much 10 lower r. r At present U it I lOOkS as though there there win will 1 bo e a gradual decline extremely slow with occasional rallies rames I V PIo production will not suffer much for a. a a long ong time to come Shipments Shipments Ship Ship- ments from the Ule mining arc are in increasing increasing In- In creasing ll thac smellers are are gradually handling more mono ore the tho efficiency of or the tho to mining mining camp labor is increasing wool and sugar r. r which are arc amon among amons the chief products for tor or Utah occupy a n position so that tUt the year leer far this state looks bright The Thc he foreign exchange scarcely maden made mado a a. n change this week in thc tho price pric of or metals and it is that there thero will 1 bo be b an international conference l shortly hi orth whereby each nation naton will wU strike e 3 a 1 bal balance and definite reconstruction will wi start str There Thera Is Sn no do doubt t but what many metal companies arc aro ao tn t n a a position to nance their theIr own On exporting c Vanco I-Vanco expects to bo be to where It Jt was wa before tho the war in five the years CS England ha has ambitions to accomplish thio tho mate matter I. I in I much quicker time Tho selfishness I of each nation naton will wil come como to the thc surface when the meeting takes tales place hut but as S i soon as there thero is a definite program m there thero is Js no doubt what hat what American companies will wl bo be in a position to finance their own affairs Anaconda Anacon a Copper with a n surplus of ot could e easily sly take tako caro care of or Itself ocl arid and there thero aro are several others in inthe tho the same samo Baro position General Motors has announced that it i has hs a a plan lor l'or the financing of at Its foreign business Overland Willys-Overland IRO erland has hns started a n factory factor in England Egland it is announced it will wl for tor the present 1 bo be 0 used as an as assembling as- as plant This Is ani only another company company that is doing doing its is own foreign financing n C There Is still a a conglomeration of or factors that docs does not leave tho the future quite clear Tho The railroads will havo o ha to be bo taken ro C caro of ot next month there thero is the thc tax t question to bo ho 0 met by hy Congress Con Con- gross gress and there thero is IR clouded atmosphere of ot a a. a coming election electon Labor has made made some announcements of wh what t It will wil do with tho the other 80 per por pOI cent of or the people of ot the United States technically wo we are aro still at war with wih Germany which only adds to the timidity of or capital Relative to the situation Goodbody G y Co of or New York make h 41 Wo see ace no o op p prospect t of a bull market marlet until several thing Hull BUll lul Market If I and When ben 1 If I and when the banks have forced liquidation in commodities and andreal andreal andreal real real estate an anti and put themselves in stron strong position I 2 If I and when labor stops shirking and begins to work worl In good tood faith This change chanSe is not likely to take tako place until until un un- un- un til ti there thoro has boon boca a a considerable re recession recession re- re cession in business and until there are arc more men than Jobs 3 If I and when Congress passes passes the tho or a a. a treaty treat and gives us some somo kind almost any kind o of a 1 railroad lull bill hi The Tue country is getting tired of or waiting for tor toris Its is servants to io settle disturbing ln questions CS t I 0 4 If IC and ad when the leading leading European countries fix fx up taxes that will wil raise sufficient revenues to meet moot their necessary necessary sary expenses without producing revo revo- 5 If I and when Europe Is exporting to tos tous us s as s much c as she is taking fro from UE Ut Ur until mat time must continue to decline unless decline unless unless we are arc willing to continue to give sl e credit This wo we are aro not Ukel likely to do on a largo large large scale Wo We might mention menton soro some somo other conditions conditions con con- such as I if and when Europe stops printing paper money and if IC and when whon she curbs curb but wo we think wo we havo Indicated Indicted sufficient conditions or obstacles to make it clear that that we wedo we wedo wedo do not expect an around all bull bul market market mar mar- ket hot next month next fall tal or oven next year car carYe We Ye do not sa say that certain stocks or classes of or stocks will wil not a advance vance materially ma ma- unless some somo or nil all of or these conditions arc are changed Some of or tho time steel also some como of or tho the motor stocks are in exceptionally strong position VVo We Wedo do not however expect much advance in any class of or stocks s unless and Until un until un- un til tl somo some of or the con conditions have havo been removed in J Jeopardy olra Of or course if Conc ress i ta i ses a a. mod good railroad bill bi soon railroad stocks and d bonds would be bc likely to advance very vory or l materially even if It the other conditions conditions condi condi- tons mentioned above should remain unchanged Admittedly however the railroad situation sit sit- Is far Car from Crom satisfactory Tho The railroads arc are sick and the doctors disagree disagree disagree dis dis- dis- dis agree both as to diagnosis and ancl as to what medicine should bo be subscribed Meantime the tho patient patent Is dying dIns Locomotives cars and oven roadbeds are so no badly out of or repair that tho the railroads cannot han handle le the time traffic of offered of- of f bred Their credit Is so impaired that tha they cannot buy anti and ond pa pay for new equip equip- ment mont Every days day's dela delay In passing a railroad bill bi makes conditions worse Taking advantage tI of or tho time delay clelar the tho American Federation of Labor have havo have ast asked ed President Wilson to urge the re retention ro- ro tenton of or the tho railroads b by the government govern govern- ment merit for Cor two t o years car longer Tho The labor lobor leaders are very about tho the high cost of or living The They fear that private ownership of ot the tho They railroads railroads rail rail- ral- ral roads would woul bo be accompanied b by higher freight rates anti and that these theBe would still further Increase the tho prices prices' of ot commod commo iles Apparently these leaders do o not know that higher higher taxes as won oll as higher freight ht rates Increase tho time co cost t of ln J Jiving Do the they think that Uncle Sam can cn continue to foot the thc railroad deficits without loss 1085 to to any anyone one It If this were possible we would want the tho recipe As to tho the high rato r s rate of or can call mon money an and the bank Lank discount rate rate and effect on 0 the market the lie Bache Bathe RevIew Re Re- view of or New rew York says Ea's The Tho stock market does not give evlon evl- evl Continued on Following p. p IORGE ORGIE OF SPENDING IS SHOWING DECLiNE Con Continued From Preceding Page 1 of or being Under an all any threat of or forced liquidation because of or tight mone money and while the sl signal nal of high call caB rates is 15 hoisted as a n warning whenever there develops any apy attempt at a a spurt In speculation tho tIm undersurface undersurface under under- surface surface situation appears confident Tho Tile belief prevails that tho tIle rise riso fh Ih 1 discount discount discount dis dis- count rates Is now directed against speculation in grain cotton colon and other I commodities An All example of or how this works Is j I given In tile the Dow OW Tones Jones sheets It I was as I the practice of or exporters some months ago abo to I. I ship lar largo o amounts of or cotton colon h I un m I LU io various countries to 16 bo be IH hold held ld there thero for Cor higher prices exports were financed b by drawing drawing- ninety day da acceptances on local banks and borrowing a against them then Meantime the tho extreme extremo fall faU in foreign exchange o would havo have created a a hea heavy loss In case cao tho cotton goods sold soIl now Consequently tho ex exporters ex- ex porters desired to hold the goods oo s and renew tho tile acceptances As tho the bills s fell tel duo due this was WI but tho tim banks were compelled to refuse the thc accommodation ac ac- ac- ac owing oWing to o the federal re reserve re- re servo serve decision not to rediscount such renewed Tills has forced shippers to pay haIr oft off the tIle matured hubs bills his b by liquidating dating tho the cotton abroad and colon selling exchange on a a declining market markeL Tho rho shippers aro are said to havo sustained II heavy losses In some cases running up to lo or The rhe u more snore result resul in Iho tIlo 11 t l is Hi a reduction or loans in largo large volume on this Ibis one OTtO commodity r. r Wall al street regards these Incidents with moro more or less stolidity and its Is withers un wrung lets the tho axe no how hew where It may having already paid Its Is toll toil tol in losses leases through h th the Ihu effect of drastic loan reductions Building Increases rense Reviewing tho the building situation S.W. S.W. S.w. S. S W. W Straus of of S. S W. W Straus Co sa says say's s Actual building operations throughout throughout through through- out tho the country have shown a marked gain since tho beginning of or the year Tho The total for January will wil show approximately approximately ap approximately ap- ap proximately or a a. n gain of ot over December and an In Increase In- In creaso crease of or over November There are many indications that these gains in tho the volume of or new construe construe- will continue and that unless conditions conditions con con- undergo a radical change chango the approaching spring will wi witness winess an unprecedented unprecedented un un- amount of or building work orI throughout tho tito United States Stales Tho The demand for accommodations of ot au an al descriptions is 18 stronger r than titan It has been at an any amp time In tho the past duo to tho tile tholon lon long period of underproduction in tho the Industry and tho tim country's growth in population and business Tho The labor situation In the industry is Js moro more stabIlized stabilized stab stab- stal- stal than has been tho case caso for se several sos sev eral erl months While Tie supplies of or buildIng building build build- Ing materials aro are limited at present improved labor lor conditions are arc expected to greatly p stimulate pro production in these lines Unes and make it moro more readily possible for tor builders to proceed with wih their work worl Building costs are aro mO moving ng toward higher levels and there thoro is Js no Immediate Immedi ate ato Indication that these tendencies will willbo wil b bo changed Tho The labor supply is sufficiently suf suf- clent limited and the tue demand for buildings is strong enough to create creato underlying conditions that thaL will c exert ert erta a a continued pressure toward higher price levels 11 0 NOT nl lIC The W. W J. J Wollman Co review re of oC New ew York says sars Unfortunately for the world In Its Is present condition reconstruction is not nota a state of mind If I it were welO vo we 0 might work orl ourselves up to being cheerful serious or earnest and solve 0 our troubles b by the application of or a a little psychology Reconstruction Is a n d definite clef clef- f- f nite practical program ro ram in which tho the various steps must be ba properly co coordinated coordinated co- co and taken I as far as possible In 10 logical sequence |