New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-21


Bourse. other bourses on the Coh"
nent were thrown into state oorue'
ing on frenzy, and this condition WAS
reflected on the London market Esu'
rnates ranging from 100000 to more
than 100000 shares have been mace
ga tn. amount Of American securities
which this country has been forced 10
taka hack from Europe. Admitting
the smallest number as the totai'
sum of money above S3O.cOo,ooo mas
been removed from our foreign bal
ance which has changed our hnancial
status very materially.
Whether the Balkan war snail prov
IN be the awful European calamity
that sensational writers since 1913
have predicted can only be settled OE
the final results of the present hosIil-
ties. It now appears TO be local al
fair and no further serious enect OH
the American stock market Is expect
Oh If has been fortunate for TINS
country that bountiful harvests ana
An energetic revival Of trade here hau
deyeloped q strong foundation for the
building Of an active and progressive
stock market before 1t was called upon
70 provide for heavy foreign liquida-
tion.
Various reasons have been assigned
for the wholesale foreign selling OF
American securities. Most OF the SELL
ing of our stocks has come from Ger
many. where liquidation has been on
remarkably extensive scale. Germany
and Austria Hungary are large cred
itors OF the Balkan States, so naturally
the sound OF a discordant note which
might mean war was a shock to the
German and Austro- Hungarian finan-
cial interests. War I'm the Balkans at
least meant an extension of credits, and
there was a prospect of heavy losses.
It is e. tribute to the confirmed pros
perity Of the United States and to the
unfinching confidence Of American
financiers In the sound fundamental
value OF our securities that such ample
support has been given stock market
prices. Whether It has been due TO
speculative pools or not is not ques-
ton to consider. The fact itself Is evil
dence Of a faith in the ultimate better
ment. either speculatively or naturally,
OF the quoted values Of the stocks
which constitute the potential force o'
the New York stock market. The
question Of our supply of money which
has been raised repeatedly, while al
present not serious, may be more seri-
Gus later. In this country, however.
there seems now 10 be enough to
finance legitimate undertakings and
provide for the requirements of recog-
nized commerce; also in an emergency
the Treasury Department may be APP
pealed 10 for assistance With war
in Europe the final proportions Of which
are speculative, with increased insur-
gency in Mexico threatening the over
throw OF the Madero government, and
three-corn Presidential cam
paign, there would seem to be small
probability Of an early overstimulatiou
in stock market prices.
Since the panic of 1907. at recurring
intervals, there have been attempts
made by newspapers and commercial
houses to restore confidence and revive
trade. In 1908 success clubs and pros
perity organizations were formed in
several cities for the ostensible pur-
pose Of restoring confidence and there
by bringing about renewed trade and
industrial energy There were reports
OF trade improvement and industries
seemed TO show signs Of growing activ-
ity. Not only were such evidences APP
parent, but the stock market, which is
presumed to anticipate coming good
times anywhere from three months TO
two years in advance, had revival of
activity and strength IL was a false
forecast, however. as the spasm OF
business energy ceased and the stock
market had fall which proved the
fallacy Of the theory Of good times. II
was not strange that with experiences
Of that sort most Of the people Of
this country refused to believe that this
year was TO be prosperous one. There
we're those, however, who very early
read the handwriting They realized
that during the last three years, par
ticularly, continued readjustment in
all branches Of trade had been going on
as a result of forced economy, and that
I'm most branches business was on a
basis void OF credit extensions and free
from extravagant appointments. Early
in the year these men who were gifted
with farsightedness into the future
foresaw that the percentage Of chance
was highly in favor of a good crop
year They recognized that business
men were tired OF politics, Of too much
legislation and that the tendencJ
among them was 10 ignore all outside
attractions and devote their time to
restoring business to its normal tone.