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Show WALL 8'SR-tl APPROVES ATTITUDE OP PRESIDENT; i,. Signs of Ease Are Visible in Money Market; Stock- ' Moves Upward on Modest I Turnover. j By W. S. COUSINS, Editor The American Eanker. j NLAV VOP.K, IV"-. 7. Wall street i was mtiiri-.lud particularly in that pnrt of the president's message whir-h related to the r;i llroads, and was favorably Impressed with his attituihi toward the question of rt;-rurnlng rt;-rurnlng the rarrlt-rs to their original companies .is soon as pra'ticalilf . The president stated frankly that the question ques-tion of the railroads was causing him great eonc'Tii, and that, up to the present pres-ent al least, he had no el-ar conception of tiie wisest course to follow, ile explains ex-plains further that the twenty-on'' months to. which the present euntrol ot the railroads is limited after formal proclamation of peace shall have been made, will prpsunialrly run only to January, Janu-ary, I fi a 1 . The full equipment of the railroads rail-roads which (he administration had planned cannot he completed within any such period. Therefore the only sure effect ef-fect of turning hark Hie roads in the near future would be a quirk and certain stimulation of private initiative, which might work out the problem n great ileal better and easier than the political q u a ck-doc tors to whose tender mercies they might hereafter be intrusted. Theories Constructive. ! At all events, the president's theories I witli respect to tho railroads and puhlic utilities in general have been regarded as constructive, and there is no reason, therefore, why railroad securities should he adversely affected by their practical application lo tiie problems which lie directly ahead. There are many leaders, both in railroad and business quarters, vio maintain that a return of the carriers car-riers to dheir stockholders under conditions condi-tions which existed before the war would not be benelieial either to security holders hold-ers or to thy country a t large. While they do not favor complet e, government control, they are favorably inclined toward to-ward a system of modified supervision by some government agenry until the present emergency has entirely passed. The future policy should be neither t lie ruinous competition nor the senseless regulation that have so handicapped railroad rail-road development In the past, but a safe middle course that will protect the investor in-vestor and at the same time insure satisfactory sat-isfactory service for tho business Interests Inter-ests of the country. Trading Influenced. Trading'in the stock market has been to a. large extent influenced by approval of the president's statement with regard to the roads, and, under leadership of the railroads' shares, the market has been making some significant advances. While conservative leaders in the stock market are still advising caution in (he making of new commitments, the opinion is quite generally held that we have "turned the corner" and that henceforth security values will show an advancing tendency. An important reason for taking this view of the situation is to be seen in the unmistakable evidences of an easier situation sit-uation in the money market. Tiu- money committee has already removed the rest re-st r set ions on loans when the purpose of the borrowing is to fi nance t he purchase of bonds and notes; and the steady piling up of reserve and the tendency of the banks to increase their line of long-term credits leads to tiie conclusion that in a very slwrt time a modification of the restrictions re-strictions on stock loans may confidently bo expected. Improve Situation. Wall street lias also made much of the rumor that the money cummittee would in a short time restore the old margin requirement on stock exchange loans. The new restriction requiring banks so loan not more than TO per cent of the value of stocks used as collateral went into effect November lu. The old ruling allowed Kj per cent loans on stocks, ll the present restriction is removed, brokerage houses would only be required to put up as margin '!) per cent against the 30 per cent now required anil the stock exchange credit situation would be ma t er i a 1 1 y i m p roved . The money market remains firm, though there is increasing evidence of the willingness of the large commercial banks to let their funds go out on longer terms at prevailing rates. Some banks report .he receipt of reserve funds in quite heavy volume from interior banking bank-ing institutions. Call money, which for six months or more has been steady at ti per cent, is now obtainable at from one-halt to one per cent lower. There is an excellent demand for bonds from investors, and bond dealers report that their volume of business is limited most of all by the shortage of their supply sup-ply of high-grade securities. The strong tone of the bond market was demonstrated demon-strated early this week by the quick absorption ab-sorption of $20,000,000 ten-year li per cent bonds of Wilson" & Co. The issue was offered at a price to yield 6.70 per cent and was largely oversubscribed by stockholders stock-holders of the company and outside subscribers. sub-scribers. The bonds showed their popularity popu-larity even further by advancing two points above the offering price of Ito in dealings Nn the competitive market. This was the second ten-year bond issue io he put out in ten days, and the records show that these longer term securities have been taken up with as great rapid- ity as the several- recent offerings of securities se-curities maturing in from three to five years. Corporation bonds and notes made available for public subscription since the last Liberty loan was closed have proved that the country contains a great deal of Investment money which only needs attractive terms to make its presence felt in force. Liberties Decline. Liberty bonds have been on the steady decline, the 4 per cents, which are no longer convertible, having sold this week six points under par. Another feature ot the market has been the pressure against the Jirst Ss, always regarded as the great favorite with the people who are blest with large incomes, because of their exemption from taxation. These bonds have never declined more than two points below par, and a few months ago commanded two and a half points above the issue price. It is suggested that the reason tor the pressure against these bonds is the possibility that the next war bond Issue of $5,000. 0'JO, 000, comingi out in the spring, would of necessity carry similar exemptions in order to insure in-sure its success. It is obvious that if a new '14 per cent issue possesses tax exemptions, ex-emptions, corresponding to those of the 3Va Por cent issue, there will be a disposition disposi-tion to sell the latter in order to transfer trans-fer the proceeds into the fifth war loan. The weakness of the 4 per cents is due to the expiration of the time of conversion conver-sion privilege. further announcements this week of the discontinuance of the operations of various war agencies and the retirement retire-ment from government service of prominent promi-nent officials, emphasize the fact that t lie war is over, and our military responsibilities re-sponsibilities are drawing to 'a close. The essential industries corporation, formed to co-operate with the war board, will. It is announced, now disband. Harry A. Garfield, ' fuel administrator, of "heat-less "heat-less Monday" fame, announces his intention in-tention to return to scholastic pursuits. John T. Ryan, head of aircraft production, produc-tion, leaves that post to take up active service in the Anaconda Copper company. com-pany. Walter S: Gifford, director of the council of national defense, resumes his duties as comptroller of the American. Telephone Sr Telegraph company. John P. White, former president of the United Mine Workersfof America, retires as joint director of the bureau of labor of the fuel administration, and Frank P. Walsh lias resigned from the national war labor board. Represents Business. E. R. Stettinins of J. P. Morgan &. Co., who has recently represented the war department de-partment abroad, is another conspicuous representative of big business expected soon to resign and return home. He may be followed by Dwight W. Morrow, also of the Morgan firm, who has spent I most of the past year on government mis-I mis-I sions In France. Charles M. Schwab is ; also anxious to get back to his own vast 1 business, but has consented to remain at the iiead of the shipbuilding program until the return of E. N. Hurley from abroad, which may be several weeks or even months away. Even Secretary Mc-Adoo, Mc-Adoo, the able executive of tiie national treasury, has seized upon the opportunity I to carry out his cherished desire to exchange ex-change the heavy tasks and the enormous expenses of his Washington post for a more humble If also more remunerative station. These men. and those who still remain in government service, have made possible the effective co-operation of our military forces In the war for democracy and righteousness. |