The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-01-26
OUTSIDE PUBLIC
IS AGAIN BUYING
CLEMENTS of MIsGIvTNG DIS
LODGED BY PLoICY OF AID
MISIsTRATIoN.
tssYa - Gz--4-A-2--k-iAA--- ~ t'r7nt
BURSTS OF ACTIVITY
EVENTS IN MONEY cENTERs DUR
ING WEEK CAST LIGHT IpnN
CAUSE or LARGER SALES
AND PRICES.
BURSTS OF ACTIVITY


prices rising day after day, and with
more separate securities tiettit in OH
The rise than IN any weeks In the four
past yeaIs---it La first in point to ask
what should have brought about this
remarkable situation.
1t is certainly remarkable In this
respect, If in no other. that IL follows
barely nine weeks after market in
which the stock exchange business fell
on ene day TO the lowest ebb ia
twenty Ave years. and from which the
stock exchange was apparently con-
WINGED FIRST that the outside Iu
lie as a factor In the market was
gone never to return. and. second.
That the stock market Itself. as field
Of profitable activity. was played out
What. Il may very reasonably be tn
uiired. has happened In this nine
weeks interval, OF SO portentous
character as to reverse thus com
pieteiy the action and attitude II Wall
Street stock exchange and outside
public?
The question might be answered
merely by saying that the $1,000
share day of November 24th was a
: landmark showing that liquidation
was complete, ali possible evils dis
counted and overdiscoupted by the
preceding decline OF prices, and the
market therefore, sure to rebound eff
fecxively when any one really made
up his mind to buy, But as everybody
knows, the nine weeks interval has in
cluded a rather noteworthy series of
events. They may not have changed
the actual situation in finance. but
they certainly brought into sudden
and strong relief some very important
changes which had already been
gradually occurring, which had al
ready created a new situation. hut
which Wall Street was still consider
Ing from it's distorted perspective Of
tho past twelve months.
Conditions Precedent.
First, and very soon after the dull
Day" OF November, came the an
nouncernent from the White House of
tho new policy towards business: the
settlement with two great combina-
lions, and the currency bills enact
ment These events dislodFed two ele-
mems Of misgiving OF which much
was heard during 19l3--the prospect
OF violent assault ON Wall Street and
big business by the government, and
the prospect that the Dem ocratic party
would be incapable OF successful or
conservative legislation. Up to the
middle of this month. scattered in
cidents occurred which pointed in the
same direction. but week ago be-
gan a most Illuminating series OF
events
On Friday Of last week British con-
soils. whose depression during 1919
reflected the troubled waters OF Euro
poan finance, and the utter congestion
OF the foreign investment market rose
nearly / per cent, their subsequent
price of the present wook hein liz
points over tina tot a week ago. and
fairly up to their price at the out
break of the Balkan war. On Satur-
day the New York banks. who In
Deocmber had been talking most
doubtfuily about tho future, reported
the largest surplus reserve for that
time of year since 1897 Last Monday
n sharp decline in money rates &C.
CURED on Europe's markets, on the
heels Of the earlier January declines;
the Wall Street money market follow
ing. and Paris rates giving way for
the FIRST time in 1914.
Cause and Consequences.
On Tuesday the presidents special
message reiterated and amplified his
policy Of peace. with the purpose out
lined mot to unsettle business. or any
where break its established courses,
and the assertion that the antago
tsm between business and government
is over" On "Wednesday came the
Offering OF the sb1. 100000 New York
State loan for public subscription. the
covering Of the offer five times over
by the bidders; Its allotment at Ii high
or price than had been deemed pos
sibie month ago. and its ipstantan-
eous reallotment to investors. Swiftly
following this. on Thursday six great
central banks of Europe--at London,
Berlin, Brussels, Geneva, Christiania
and OBSERVATION-DISCLOSURES their Of
fetal discount rates 10 "A lower level
than had been fixed by any OF them
since the Balkan war began; the open
IN Ir - a
Bank OF France made no reduction,
falling below the rate which the bank
would have established had its own
rate been lowered.
With Just this sequence of events, q
fairly clear explanation OF this week s
move ment on the stock exchange is
at hand Summing up all Of these
numerous successive occurrences. II
may be said In general way that the
particular doubts and approximations
some of them well warranted, some
purely imaginary~-which prevailed
throughout 1913, have. SO to- speak,
been exploded through rapid series
of distinct and convincing occurrences
Wall Street need not now appre-
bend that the party in power is hand
ling the ship without a rudder, or
with the black flag at the mast Mis-
giving over the New York bank posi-
ton would be entirely misplaced
Financial Europe las yet excepting
Pans) has given the plainest intima-
ton that the strain on the foreign
money markets is over.
But these are precisely the consid-
craft ons. doubt or uncertainty as &c
which caused the dreary financial
Etory Of 1913 Every review OF the
r-ccc-~e OF ttrse~ .ee.-s Y,,arket~~ ms m
dicated as the dominant influences oi
the period the absolute ue-up Of in
vestinent capital. the difficulty Of pIac.
Ing laEe new l0a ns, the general and
continuous stringencv OF money, and
the constant political appre hesions.
Two elements OF great reinsurance
have been brought into the limelighl
this week; the reason being that they
were plainly exhibited SIX months OF
more ago, but failed in The general
pessimism of that time to make OF
the financial mind the impression
which they should have made. One
is the fact that friction between the
great European powers. the chief
source 81 apprehension a year age
has beer quite removed. The other Il
that the fundamental soundness OF the
American position has been demon
strated.
trs
Basis for Eufopc's Hopes.
1.-THE hope for financial and in
HuA rial revival In Tie coming year.
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