The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-09
Charges Against 81. Paul's
Bookkeeping Subject stocks
to q Severe Test.
NEW BLOW TO CONFIDENCE
Aspects Of the Chesapeake and
Ohio Note Issue-Values Sup
ported by Easy Money.


system preferred by the Interstate Com.
merce Commission Is conjcctural The
! commissions report was made public IN
q reckless fashion and the early harm
full Impressions produced by II were not
only exagge rated but were mttgated by
the commissions efforts to speak approx
ingly of the actual financial condition Of
the property and comment favorably on
its operations, The violent contrast be.
tween the findings on this score and the
technical diatrlbe against the bookkeep-
ing methods Of the ST Paul management
only Increased the establishment of the
banking community over tho course
adopted by the commission In seeking to
enforce It's prescribed standards OF ac-
counting Tie situation is seen TO be
nothing like az serious as was indicated
by the first publications OF the commits
sion's criticisms but the long tale of
railway scandals with which the coun-
try has been afflicted lately lent an UNI
fortunate point TO the ST Paul report
The prestige OF this particular road has
been such as TO emphasize the point: and
naturally. with market conditions already
/ characterized by sentiment none too
/ robust quoted values were greatly un-
settled when the ~. Paul management
stood forth accused OF grave irregulari-
ties by the Federal Supervisors OF the
common carriers.
These occurrence all took place SO
close to the week end as to preclude the
sober consideration which they deserved
and prevent any satisfactory application
Of them to the financial prospect over
which they cast Il new cloud. They show
how very much NJ the mercy OF official
conceptions OF public duty values have
been placed No moro evident elouuence
OF all this could he needed than that
| which was furnished by tho bad break
in the Wall street share list which fol-
lowed the Incorporate zeal manifested by the
Interstate Commerce Comm ssion both In
respect to the terms In which the 81
Paul report was couchel and In the fash
Ion Of It's public delivcrancc. on the
other hand the resistance which TIN.
market offered on Saturday showed that
selling had been largely professional. and
furthermore gave evidence that while "A
fresh shock had been administered to
CONFIDENCE marke'w!se AFFAIRS are in bet
ter shape TO face tho future than they
were year ago
When the worst has been said that can
be said about factors of vr.u. the basic
iact remains that the greatest OF all
nenaces the menace OF tiGht money, has
been eliminated from the financial reckon
ing Allowing for the damagiul, effects
OF particular episodes and influences such
~ that repres, nted by the st Paul mat
ter. security prices have. both at home
ana abroad, reflected lately the sustain
ing influence of the recent widespread re-
Taxation In the money market Selling
has been largely professional at al! cen
tres. even allowing for tho occurrence OF
special realizing. Markets have tended
To hold w. despite the waning OF buying
movements. because the current cheap-
ness OF credits has reinforced extensively
iGutdated positions and because quoted
values Tor the time being have been tusti-
hed oy tho trade aud Industrial! situation,
Whlch in the long run governs values.
Commerce and manufacturing have not
evinccd signs of expansion. but contrac-
Ton ana depression are not extreme In
all probability nothing IN the way OF u
renewal of rising security prices and a
resumption OF buying movements IL 10 ba
expected unless general business clearly
improves in the next few weeks and II
Improvement ~ not noted a. display OF
STOCK market weakness would not be sur
prising Nevertheless the stubborn under.
lying strength which quoted values nave
exhibited IN recent weeks does not re-
GuFe any particularly reconcile interrre-
tation. II IL fundamentally owing 10 the
relief or financial positions from the
credit strain which was menaclng n
factor year ago. Had Il not been for
TINS RELIEF II is doubtful II the hopes which
are entertained OF gradual bettern.nt
OF conditions In the field where values
are created would have been able TO pre-
vail against the succession OF adverse de-
Vclopinents with which finance has been
confronted
Every important financial market has
troubles OF Its own and IL subjected to
fAA II tt..., ~.
Furthermore. all OF them are in turn ar
iected more or less unfavorably by the
worldwide state OF social unrest By the
curtallment OF world trade and by the
necessities which have compelled n con-
siderable suspension OF normal dealings
between financial centres represented by
transactions In the security ana foreign
exchange markets. Here. ~ abroad. new,
financing has been very largely a process
Of rchnancing and new enterprise con
tnues In allegiance with its irnpltration
or prolonged slackening OF general
business activities The conditions ~
trade have not provided constructive in
fiuences 10 the domestic atock market and
the mercantile and manufacturing com
nunities have evidently not yet solved
the problems created BY the business leg
islation OF last year. while further 70
straIuts are Imposed by the new lerisls
ton winch Is pending for the ext.nd.d
political regulation OF business andeavor
Domestic politics have not IN the main
been conducive To the display of stock
market frinncss and now at the begin ,
ming OF the second year Of President VII |
sons Administration finance encounters n |
tans'e of difficulties In the foreign re,o
tons OF the United States such MS are
PLAINLY denoted by the Mexican i'm
broglio, by the Panama Canal tolls ou.s
ton and less plainly but Just as ln,n,a
iakably set forth In the limitations given
by President Wilson In his brief tmnres-
sive address TO Congress- last week. Al
together 1t IL remarkable that 80 much
resistance should have been offered b,,
the stock market, a resistance which nm
questionably testifes to the essential
strength OF banking positions and tho az.
sential soundncss Of the money market
Wall street IL perhaps the most willing
tart OF tn" country to suspend judgmont
on IN" embarrassment OF foreign relations
win which the Administration Is dealing
II T"""tniZcs that these barrassnlents
are larS'ly the result of q foreign policv
carried ont through a State Dnpartrncnt
which has literally been rendered an nh.
turdlty' At the sam" time tho financial
centre OF the United States has not nj uny
time been disposed to borrow trouble from
the obviously accommodating difficulties az
our foreign relations, II has believed that
American common sense woujd
Triumph. II has believed that "A, soon ~.
President Wilson realized that our roreIcn
concerns would not be wholly nesir,tc6
Tor 1ne sake OF prosecuting n lroxrat,m.