Evening star., 1914-04-26
ON MARKET
OF WAR IS SMALL
Financial World Had Dis
counted Prospect of Trou-
BILE in Mexico.
IMPROVEMENT REPORTED
IN GENERAL BUSINESS
Evidence That There Is Plenty Of
Capital Awaiting Chance for
Safe Investment.
By W. S. COUSINS.
NEW YORK, April


stances Of the Mexican situation may
have upon the country as a whole, the
financial district is viewing the matter
with complacence and refuses to become
| wrought up over the present outlook. So
far as Mexico is concerned, the uncer-
| tainties incidental to our relations with
that unhappy country have long ago
been discounted in the stock markets,
| both at home and abroad. and thus it is
accepted that the recent happenings are
nothing more than incidents OF a greater
problem. the gravity of which has long
been recognized. Thus the adverse turn
which the Mexican situation has now
assumed, though contributing in part to
the general weakness Of the stock mar
kets. may not by any means be con-
sidered the dominant factor.
The chief factor in the present stock
market situation Is that of liquidation
particularly in the stocks that have suf-
fered by the decline in quotations. This
has also melted pressure from the pure
ly professional quarters. which. in the
attempt to create a bear market, have
unscrupulously hammered the market
| to their own advantage. Prices have
therefore depressed, though it Is believed
that investors as a rule are not regarding
the break in prices as an opportunity
which they can at present embrace.
Business Conditions.
Those who have been most critical in
their investigations of the economic
situation are able to report considerable
improvement, while mercantile agencies
report an improvement in general busi-
ness over the corresponding period last
year.
Especially is this true of the south.
| where, despite the fact that both sugar
and lumber operations are somewhat
curtailed. the volume of business remains
about the same. Now that the suger
| financing is over and an attempt at sta
tistics is possible it is shown that there
is greatly reduced acreage and a much
smaller investment Of capital than has
been the case for twenty years. With
the easing OF money in Europe and the
fact that there has been little construct
ural activity in the past two years 1t was
supposed that the large stocks Of lumber
in the principal ports would disappear
quickly before the demand that was ex-
pected to come from all points in the in
terror. The fact that this has failed to
materialize has resulted in the heaping
up OF record-breaking stocks at all Euro.
pean ports. Much Of the lumber and
logs exported from the southern territory
being sacrided at what 1t will bring. AS
80 per cent Of the lumber manufactured
in the south Is for export the effect is
| unfavorable to all lines Of business. 1t
cannot be said that money Is plentiful
there. but there is no dearth Of funds
for conservative financing. Regardless Of
this there is even less building activity
than last year when money was high.
Labor is well employed and general busi-
ness is good.
Absorption in Bond Market.
The absorption of practically all Of the
$66. 100000 Of the New York city ~ per
cent bonds taken by the Kuhn, Loeb
syndicate last week proves that there are
still large sums of money awaiting profit
able investment; and. though the offering
has not proved as popular as the state
bond issue in January 1t Is to be noted
greater than can be obtained In loaning
money under the current low interest
rates. This is not the only largo bond
issue to be absorbed at present, there
several large railroad issues. as well as
state and municipal offerings.
From present indications. 1t appears
that New York city bonds and other sim
liar issues are being given more than a
normal preference over the obligations
of business organisations. That Is not as
it should be or as it would be II the in
vesting world were surer Of fair treat
ment at the hands Of government But
here again there are those who feel con-
vinced that this fair treatment will be all
the more assured as current events are
followed to their natural sequel Impor-
tant items Of financing are being ar
ranged, but very much less money IL be-
ing sought for new work than there
ought to be in view Of the natural oppor-
tunities which this country still offers In
such abundance. Both the New York
Central financing. which was arranged
last week. and the New Haven financing,
which has been formally announced this
week. are expected to contribute in inn
portant degree to the solidifying Of the
financial position Of those properties,
among other ways by replacing tempo
rary securities by more permanent is-