Prominent Financiers Weigh 1919 Business Outlook
Prominent financiers offer views on the new year’s business climate amid the readjustment period ahead. They discuss investment trends, market expectations, and potential opportunities for 1919.
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Newspaper
Boston Post
Location
Boston, Massachusetts, United States of America
Date
Jan 01, 1919
Page
15
Prominent financiers offer views on the new year’s business climate amid the readjustment period ahead. They discuss investment trends, market expectations, and potential opportunities for 1919.
The article discusses the postwar shift from war production to peacetime readjustment. It notes government contract cancellations, the need for early fair settlements, and lifting wartime restrictions. It urges targeted support for industry units, demobilization pacing, and launching public projects to create jobs while preparing for credit liquidation and potential bank losses.
Banks and merchants look to a gradual readjustment after the war. The piece notes no quick fixes, urges careful study and rapid adjustments, and predicts a gradual decline in commodity prices as production and inventories normalize while government financing remains central to policy.
In a call for unity, a speaker urges labor and capital to cooperate, apply the Golden Rule, and resist Bolshevik influences. He stresses America’s duty to protect industry, develop resources, and ensure fair wages while debating weekly hours and the future of domestic and foreign trade amid uncertain conditions. The message warns of stock manipulation and vows to restore credit, urging New England investors to build a stronger economy.
The War Board urges the President to seek Congressional action to avert mass transportation distress and credit loss. Massachusetts trolleys have sold below cost, suggesting stock-jobbing motives. The Chamber of Commerce City Club and Public Safety Committee have not addressed the issue, given Massachusetts’ prior high credit standing.
A historical snapshot notes that New England cotton mills built reserves and surplus during World War I, paying liberal dividends. With government price fixes and war orders, mills cut debts and boosted finances. Coming civilian demand and returning labor suggest continued favorable prospects for well chosen mill shares for cautious investors.
The piece notes a public speculative tilt toward copper stock bearishness while urging consideration of cash values behind copper shares over the past four years. It highlights imperfect metal conditions during the war to peace transition and expects price declines as producers mark down blister copper inventories.
An analyst argues copper prices will recover as world demand rises and wartime controls ease. He notes high costs from wages and depletion taxes but expects strength from 1900s levels, with government purchases declining and American producers gaining via pooling under Webb law. He foresees no lasting price decline and predicts prosperity for copper stocks.
During the transition from war to peace, business activity will adjust slowly as civilian markets and raw material prices stabilize. The United States, in a strong position, should shift production from war to normal goods, opening new markets in Europe, South America, and worldwide. A long period of prosperity based on broad commercial activity is anticipated, with active steps already under way to cultivate global trade.
F R Switzer of Hollister White & Co predicts a new era of prosperity as postwar reconstruction and peacetime readjustment lift industrial, governmental, and social organization. He cites trained labor, open world markets, and a booming export field as underpinning rising security values and a lasting appreciation in 12 months.
Prairie Oil & Gas Co has maintained a daily crude output of 20,000 to 25,000 barrels in Kansas and Oklahoma and operates in Wyoming. It recently entered Northern Texas, bringing in a 6,000 barrel well on 50,000 acres, jointly controlled with Texas Pacific Coal & Oil Co. The firm underlines investment appeal among Standard Oil securities.
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