Salt Lake Tribune | 1919-07-28 | Page 10 | Needed Tonic is Given to Stocks

i NEEDED TBI IS BIVEHTOSTOCKS" Standard Oil Action Has Buoyant Effect on New York Market By BROADAN WALL NEW YORK, July 27. It was no wonder that Ktocka were buoyant nt the cIohc of liuit week, for tho announcement that Stantard Oil of New Jersey would borrow $100,000,000 from Its stockholders and U.st both its common and preferred stocks on the exfhungn proved just the tonic the market needed. This announcement coupled tho Morgan group with the S"nu-daxd S"nu-daxd Oil people in a constructive campaign for world business. This is only the first issue, for now thnt Standard Oil Is going into tho market for its money, there will be a dozen such caJls made on the public purse. All the other Standard Oil companies com-panies will follow the lead of the parent one. That is the only possible conclusion. This means that the big people have committed com-mitted themselves to a policy which makes It necessary to have an active stock market. In no other way could such 1 issues he floated. Not only do the offtclnl actions of these , people Indicate such a thing, hut their 1 talk privately proves them to be extremely optimistic regarding the immediate future, 1 not only of business, but of the stock , market. They believe that the United 8 la ten In parti'-uhir is entering upon a . two-year period of prosperity, rich be- j yond imagination of the wildest tipster. i ! Enthusiasm Justified? j j The business nnd financial world usually ; j look ahead about six months. A vision i I t of two years would seem enigh to jus- j Ufy all the enthusiasm that mis been dis- i played by traders in Wall street. There i i are professional operators who are openly j I bearish on the stock market. One of the i i writers of unquestioned sincerity and rec-i rec-i ognlxed ability announced Saturday that ho considered It positively dangerous to "hold stocks," whether rails or industrials. Mnyhe he Is riirht, hut the people who I make the wheels go around in big bust- ! ness do not think so, and the crowd is , i following tho big leaders. i ' There has been a revolution in business j hs well as in polities, and it is by no i means a certainty that a panic must follow j this boom. One reason for the possibility ' of no panic is that the world has liqni- d;itrd its political promises and that It is J humanly impossible to have a big war for i n couple of generations. There will be i little wars, but they do not touch the big 1 j 1 fundamental situation. i j Announcement that the First National j bank will in future lend money on stocks, , ; regardless of whether they are rails or j industrials, is a long step toward a square I deal in the money market. j No Danger Threatens. One of the most important developments of the past week has been a fading away of stock talk in the steel industry. Judge Oary has made It clear to the world that no danger threatens the stock- i holders of the United States Steel corpora- I j tlons. Stocks of companies dealing in 1 1 food products and in machinery for the production of foods nre enjoying the de-nerved de-nerved confidence of the public. The question of foreign trade is not terrifying when viewed from the standpoint stand-point of strict business. The United States is the one solvent creditor nation and producer of the world. America is master of the world if its industrial and financial leaders can realize I the fact, and if they have the Imagination nnd nerve to possess themselves of it. Occasional reactions, and a had day now and then, will come as a matter of course to Wall street, but the big swing; is upward.