The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-15
FINANCIAL REVIEW
OF THE PAST WEEK
Eastern Rate Case Overshadows
Other Factors at the
Moment.
A FINE CROP PROSPECT
Gold Export Movement Swollen
by Record Breaking
Shipments.
FINE CROP PROSPECT

the state OF politics In general. the con-
dltion OF the crops or foreign affairs
has been subordinated lately In financial
attention to the possibilities of the East
| ern rate case. Doubtless the business
| community has had much the same atti-
tude toward the factors OF value. because
business interests have been persuaded
Of much the same thing as Wall Street,
that the outcome Of the rate case would
have a very important effect on trade and
Industry well as on the stock market
during the balance OF the year.
II an exaggerated Significance has at
tached to the judgment sought in the APP
| plication OF the Eastern carriers to in
crease their freight charges II can only
be determined In the sequel. There Is n
question that the matter has engaged ire
mendous, even worldwide. interest. Eu-
! rope, which has a huge stake In Amer-
/ can enterprise, has taken due note of
| the opportunity for a momentous declara-
, ton Of public policy by the Interstate
Commerce Commission. and there is no
| less reason to-day than there was six
months ago for supposing that the COM
missions determination will have extern
sve marketwse and business conse-
| quences. Whether or not these conse-
uuences will be Immediately obvious IL
question admitting OF some debate, and
| very tnuCT, uHuer INC circumstances winch
| now obtain In the field OF values, de-
Ponds on the nature OF the commissions
| ruling.
The financial district was flooded last
| week with variety OF prophetic rumors
| regarding the character OF the commits
sion's conclusions II was inferential
| from the action OF the stock market
either that no rumor represented trust
| worthy information or that the market
was experimenting a decision which would
require much analysis TO discover whether
| II was favorable or merely helpful or
whether 1t was simply disappointing or
positively unfayorable from the railroad
standpoint
This standpoint happens to he the one
commonly accepted by the business and
banking community as Identical with the
public welfare and II might he assumed
| without reference to the political past and
present. that the event OF the rate case
must be constructive. The trouble Is that
the Interstate Commerce Commissions
record revealing at least n doctrnaire
sympathy with the idea that Govern
ment ownership Is the inevitable destiny
OF the railroads and the contemporary
mania for political action rendering all
corporate endeavor increasingly subject
to governmental control at the expense Of
private initiative have afforded no guar
antee that the Eastern rate case decision
would be such as to make plain and I'M
mstalsable contribution to the general
welfare.
Presumably the stock market, and bust
ness as well. have done little or no dis
Counting OF the issue of the rate case un-
less hopeful expectations have figured to
some extent In supporting volumes and
values against other forces making for
contraction. The way would seem clear,
accordingly. for clear reflection of opln-
ion as to the meaning and import of the
10 aA@ -lA.s L.. -. Al -
opportunity offered to the Interstate Com
merce Commission TO make pronounce
ment OF public policy OF far reaching sig .
niiicance has been emphasized by the rul-
ing OF the Federal Supreme Court In the
so-caled Shreveport rate case. The opin-
lon announced by the court last Monday
In this litigation carried along the line OF
recent ruling adopted year ago In the
Minnesota rate case and looked squarely
in the direction OF exclusive Federal con-
troll OF the railroad system. What the
fate OF the railroads Is to be and what
fortune awaits capital invested in the rail-
roads may therefore be all the more con-
lvincingly indicated In the attitude adopted
by the Interstate Commerce Commission
In dealing with the Eastern carriers
Still the rate case is not everything
in the financial and business prospect. ON
the whole the Interstate Commerce Com
missions ruling has seemed likely to be
a marketwise factor being contingent on
the degree Of its decisiveness There are
other matters which have both been hold
ing financial and business effort in check
and furnishing some encouragement 10
optimistic projects and commitments.
First and greatest among these is the
agricultural situation. Combined with the
ease In the money market the crop out
look is an antidote to the paralyZing poi
sons with which finance and business have
been otherwise supplied. The rate case
has filed mems minds lately. but as soon
as 1t ceases to monopolize regard 1t will
be recognized that the essential influence
OF the summer will be provided by the
progress of the farm season. Underlying
all business and financial factors are the
crops, and without satisfactory harvests
there can be no enduring recovery In the
financial markets and no permanent re-
generation of business.
. At present the prospect is entirely aus
pcous. Reports on agricultural condi-
lions abroad, where good crops are needed
;. no less than here, are excellent, and the
i agricultural vista in the United States is
i gratifying IN the extreme Since the be-
II ginning OF the month. when the returns
were compiled. the weather has been aus
picious and the June crop report published
| last week was. all told. about the mos,
II brilliant showing for the season which
II the Government has ever put out. A
II composite figure for all crop conditions
reported upon placed them about 2.3 points
above the average OF recent years. but
the chief stimulus to a better financial
and business sentiment was provided by
the forecasts OF an aggregate wheat har-
vest of 800, 900. 900 bushels, a Yield OF
63S, 0O0, 900 bushels OF winter wheat being
now almost assured.
SO far 30 good, and while the trials %
o summer are all before the farmer another
month of his season has passed with un
!, diminished incentives for the dilgen
prosecution of his beneficial efforts. Thu
ingredient OF confidence which Is draw
from agricultural portents Is increasing
and II the embargo which politics has lai,
on enterprise could only be lifted a littl
the Improvement OF business might b.
viewed as something imminent. II tn
Interstate Commerce Commission shoul,
render a decision ut all constructive 4
the Eastern rate case American trad
and industry might receive therefrom a,
= impetus to forward action which tn
progress of the crops will support
III Nevertheless II Is desirable to remem
| Der that potent as Is the crop factor 1t
not the only factor in the reckoning, With
out substantial harvests business an
finance cannot flourish. but crops alone d
not suffice. A proof Of that which
fresh In all recollections was given |
] 1912. There was in that year not a har