The punitive legislation recently enacted into law by Congress may indirectly help to restore investor confidence in the stock market. Important as it is, that action alone will do little to bring back the bulls. The stock market must be made more long-term attractive to all investors.

I have a simple prescription: Corporations having current or retained earnings should start paying cash dividends or increase their current rate of dividend payout, as the case may be. This would make the equity markets the most attractive place for investor money and source of corporate capital.

I know dividends paid are not tax deductible, but sound financial policy should override negative tax consequences. Corporations should help themselves by helping their own stockholders.

Carle G. Gray

Sullivan