| Show STREET SCANS GOLD Metal Pouring In At Rate Of Per Week By Bv SELLER i hl l Cd Ct respondent to i ThC Standard Examiner Copyright 1923 NEW rW YORK YOP-I Dec From 5 t I From From the thelong thelong long range view point the two In- In Im Important developments In th the e i k affecting the th security markets market w wre re first the Iho th president K e IlS as bearing upon ta taxation atlon a as the th Lu- Lu CUtill tuie fu-tuie till of ot th the railroads railroad and second further e nc of or the tead so- so ac accumulation of ot gold cold with lIh I its It-i I Im II Implication cation of ot a continuation ot of easy money mon and the probability that Such uch II a case cane would be b a It to speculative act it It It I In is almost superfluous to o say IlY that the president a s attitude corn com commended mended itself to 10 Vi P Wall all Street Streel fh fhe financial expected him to endorse Secretary Mellon Me i s pro pro- pro grin for lower taxes Interest centered on the th president t S discus discus- discussion Ion sion of ot the problem The Only omy reas explanation of the thc failure of or railroad securitieS both stocks tock and Junior bonds to toI I to this s record bl Inc bieak-Inc eak- eak log ing car loadings and Increase tn In Innet innet net Income has peon been the fear that the Incoming es make maka II a successful attick upon the trans trans- transportation act and that ne new ne and op- op op oppressive e measures for tor the th regula- regula regulation tion would be proposed It H now appears plain that however ho the th attacks m may y develop elop tire the must be carried on In detune of ot the e ex expressed pressed views Ie S of ot the tho th chief executive tit the tive e GHO rn r IS Ic HID Lo It sounds like a to say y that rals rate cannot bo b imposed upon the tile carriers be because I the constitution forbids forbid confIScation confiscation tion lt et tills tI verv erv phantom of s rate r te reduction and conse conSe- cono consequent quent bankruptcy for tor some dom of the eaker roads ha has been hauntIng all all Street for months That ghost at least has been laido laid 0 o equal Interest I Is the matter of ot consolidations While no noone noone noon one has been sole aDle to explain Just ho compulsory consolidation was waa to be enforced there was as al ays the thO ague fear tear that somehow or other strong roads would be b sad sad- saddled sad saddled died with Ith the th weaker eaker eaker ones and that the only result a as far tar as a railroad so- so securities s are concerned would be beto beto beto to depres depre's market values alues alues The beI I president did not attempt to flay Bay how any consolidation plan I Ibe be ced He did propose propos how how- how I however ever eser that combinations be o preceded by conferences conference with ith ith security hold hold- holder holder er em SIlO sao that In this case also alao as well I as aa In the th matter malter of ot rate rat making ng there should be no confiscation So SoI I It removed another spectre I Ihas Ihas has been haunting th the thu street I or COLD bOLD OLT All does not say cay the future ot of the th railroads Is not without dif dif- difficulties dif difficulties Investor In In eaton estors in railroad so- so securities se securities must continue to take tak the business risks s Involved In Inoh oh ed Tny must still expect that their pI III 1 ill be subject to regulation In the I pUblic Interest and that all they I Ican Ican can hope for or Is a reasonable rn I on the capital In Involved 01 ed ProbablY the day of ot wild lid ap speculation In rail rail- railI rall I oad atoc stocks Is la pase It 11 doe does clear I the for tor a consideration ot of these securities on their in estment merl mOrlin l lI I The Tte second de development of the eek which challenges challonges attention Is I the continued Inflow l of ot gold fold I Figures made public this weeR it show how that during the last se Se n days s in In l r British h bon banks had placed aboard ships bound for New Nw York 4 pounds terl- terl Int log or approximately 24 2 0 t The monthly total tot of o gold imports tor for the tte Sear ear has been Mound around 30 In other neArly as much gold fold caine came In ono one week ck us ne has ha been coining comins In an tir en-tir tire month DOn DOM G G Various explanations a ale aie e made for this movement ot of Hoover Hoor 1100 or attributes In Ii a large larse measure to of American securities by foreign buy buy- buyens buyer era ens er No doubt there her ha has been ben ery ery e buying of ot this tort sort A good deal of ot It has come from Itol- Itol Hol Holland land and the th ehan chances es are that Ger- Ger maji Ger-maji man Investors ha hate hav e figured floured In the It Is hard to explaIn of some ome of the th very erv high grade low coupon rate railroad bonds of the saving aa bank ban class on any other theory The I on these thise bonds at present market prices Is so In low that they attract only that ho ho places safety above every o oth- oth othor oth other er r consideration There has ha also aloo ben been accumulation of some of the foreign dollar Issues l listed In New NewYork NewYork NewYork York for tor or account of ot bu l eis s on the theother theother other sid side What That hat these thee foreign In our represent la is i the desire lre to secue decile an obligation pay- pay payable r rable able able In a stable table It li is I hard hard- hardly hardly hardly ly surprising su such h a II de desire lre should hould bo be strongest in those thoe investors Investor ho ho ha hae suffered from the th greatest do- do de depreciation predation In their 0 own on n national TO BUY LIBERTIES But whatever hate er the reason for our mounting surplus of or gold old the ourI re- re result re result I sult suit Is I the th same tame It means mean n I abundance of ot funds funda fund certainly for tor all legitimate business demands demand and probably tor for tl 1 tie Nor is 1 I It likely that any course adopted by the th federal re- re re r serve een serse e board can permanently con con- conceal conceal con conceal ceal the th real monetary situation or aerl the th natural consequences n o The Tho federal fedral reserve res authorities this seek eek he hae hav h e allowed It to 11 bo las under under- understood understood stood that the th e banks are about to resume the purchasing of securities In the open market Last spring the th policy was waa to dIspose of holdings holding In govern govern- government rovern-ment rovern I ment bonds bond and treasury cales cates Now apparently they are to re- re reacquire acquire re-acquire acqUIre The motive may be as ash h has been ben stated to Increase earning assets ets but the tha th course cours to be b de tel de-tel- dev el- el eloped l testifies lest to t the th existence ot of this same surplus There Ther are lire many economist s who believe bellev that ulti- ulti ultimately ulti ultimately al leads to t gold old Inflation lion tion with Ith the tho attendant rising rl prices for commodities and the temptation to speculation peculation Whether or not nt such uch will viii be b the result only the th future can reveal reval but It la Is a which either in- in In Investor I vestor estor or speculator cust take ta Into account |
