The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-11-03
NY. Sun 8 Weekly
Financial Review

NEW YORK. Nov. 2-The Sun:
weekly review of the financial situa'
ton tomorrow will cay:
Familiar economic processes OF q
curative sort are undoubtedly contin-
vauG 20 work both at Ahome land
abroad for the eventual establishment
al values on a sound basis OF adjust
naent TO the new conditions Indicated
~ social upheaval in various coun-
tries. They will also insure recovery
from the maiad.es caused by extra
VACANT use OF capital. and abuse of
credit Nevertheless, the unpleasant
stages of treatment for financial dis
orders through which this country
and others are passing, are rendered
more painful than is necessary by
the disturbance of confidence resulting
from the fashions OF politics. This is
particularly true OF the United States,
where new programs OF oedevilment
for the possessors Of capital are al
most as numerous as the candidates
for public Office.
''Sentiment in the financial COM
munity seems 70 resist with difficulty
the various depressing influences In
political, and other oategories The
stock market has displayed firm
undertone because OF the extraordi-
nary reduction OF speculative COM
m!trnents, and the market for Invest
mens securities exhibits a fair alb
sorptive capacity, despite the truth Of
James J. Hills criticism. that the
country is saturated with over issues
of municipal and industrial bonds.
etiu the state OF the capital market
cannot be described as good when
there are indications that the short
term notes OF all descriptions matur-
coed. 5000. 600. 900. So far, however,
as security values 60. the situation
and outlook may be characterized as
dcnot!ng something like an endurance
contest between extensive investment
and reduced speculative positions on
the one hand and the duration and
depth Of general business recession
which is becoming more marked IN
basic lines Of industry, notably iron
and steel The test OF conditions has
already begun to tell on weak or un-
sound commercial and manufacturing
enterprises, Judging from the receiver
ships reported in the last fortnight
or SO.
Abroad the financial situation ts
confused, but with some evidence Of
betterYl4ent, although facts are con-
Trajectory The Imperial Bank Of
Germany lowers it's discount rate
from 6 TO s Ia per cent, after n
Years maintenance of the higher
figure. but the Berlin stock market
mediately turns weaker than 1t has
been for some time. The Bank OF
England makes a better showing than
before Il restored its discount rate
10 per cent at the beginning of
October, but when New York bankers
engage gold in London strictly on
an exchange basis, hints are prompt
Is given that such transactions are
likely to lead TO an advance in the
British bank rate. On these accounts
much Importance attaches TO the
preparations at Paris for an early
offering of French national loans az
gresating several hundred million dol
lars Efforts have been devoted for
some time to insure the eICcess of
French national financing, but II IL
is strikingly successful. tho circum
stance Will be hailed as proof Of es-
santial betterment in the foreign
money market, and impulses may be
derived therefrom which VIII lift al
financial markets out of gloom and
detection"