The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-25
FINANCIAL REVIEW
OF THE PAST WEEK
Wall Street Displays Fortitude
Under Adverse In
Hucnces.
NEW HAVEN AFFAIRS
Revised Tariff IL Affecting For
eign Trade-Gold Ex-
ports Con tinue.

| A shadow seems 70 have been cast over
Wall Street by tho Mellen testimony show
ing how the gigantic plan Of the New
Haven consolidation came to end In fall
urc. There Is no disposition In the finan-
cial community to minimize the dismal
impression which, In these agitated times,
must be made on tho public mind by the
Mellen narrative. and II Is not surprising
that the Interstate Commerce Commits
sion's examination OF tho man who was
president Of the New Haven railroad dur
ing tho years In which its misfortunes
were prepared should have been primarily
responsible for causing the stock market
to slagnate and react Slightly IN the last
few days.
Other matters combined with the New
Haven inquiry to affect quoted values
somewhat adversely. Among them were
the reminders OF exaggerated crop dam
age reports that II was too early In the
farm season to rely recklessly on abun-
dant harvests: gold coin exports. which
directe. notice to the exceedingly I'M
favorable conditions abroad, and the criti-
cal stage reached In various undertakings
to settle the problems presented by GER
tain embarrassed corporations, chiefly tho
Missouri pacinc railroad and Its depend
encies. which constitute one OF tho most
important transportation systems In the
country.
Nevertheless reactionary symptoms dis
played by the Wall Street share list were
accompanied by tokens Of stubborn UNI
derlying strength. Selling appeared to be
OF reluctant order. even on the part
OF professional spectators. for the trad
ers have observed the technical strength
evinced In the market on more than one
occasion In recent months, a strength
owing to the steady absorption OF stocks
In the last few years OF common subscrp-
ton to the belief that the public was
alienated from corporate securities. The
market seems still as a whole to be one
in which some very violent and exciting
cause must be furnished to stimulate real
liquidation In any quantity ana while
there Ia no disposition to follow rising
prices with expending purchases. there
is n latent inclination AT all times to buy
discriminatory in periods OF heaviness
or weakness.
II IL with the stock market ne with
general business There Ia feeling that
unless such violent and exciting causes
are furnished for further impairment
of security values and volumes OF trade
the economic situation In the United States
Is about as bad as II Is likely to be and
that the capacity OF finance and business
TO make further response TO adverse In
riuences Is less than Its capacity to re-
spond to favorable considerations and
developments.
II has to be admitted. however. that
finance and business have much to con-
tend with. The foreign factor In our cir
cumstances is not encouraging. and events
abroad must be watched carefully, not
90 much because Of Indications that the
European gold drain from the United
States this year will be volumlnous. but
because the foreign demand for gold
signifies underlying conditions abroad
which require n vast amount of strength
enng. Exports OF gold coin began Last
week. when foreign exchange reached a
level as high as that attained In Noven-
Der. 1907. Tho suggestion OF the ex-
changes was that gold shipments would
Immediately grow to large proportions,
and our position on international account
Is evidently such that II there were any
active domestic inquiry for funds Just
now we would be facing a tight money
market.
Fortunately the fear OF monetary strin-
gency does not come into the present
reckoning. BY the time that financial
and business activities increase, as they
win II the years crops are good and no
untoward accident OF great Importance
occurs, the new Federal reserve banking
system should DO In operation and AFFORD
guarantees against monetary strain.
These guarantees will be reinforced by
the possibilities Of increased credit ac-
commodation provided In the hberalizng
OF the New York State banking laws. A.
the same time II can hardly be doubted
that the revolutionary change In our
financial system through lowered reserve
requirements and larger facilities for cur
renoy emissions are being somewhat an
ticipated In the gold export movement IN
which the country h this year engaged.
The fact that Europe has been very
large seller OF American securities on
balance since the summer Of 1912 instead
OF buyer on balance. AZ 10 normally
the case. has created for US the necessity
Of making cash remittances to Europe
In settlement Of the debt balance which
annually accrues against tho United
States, outside the trade account. Fur
| thermore. tho foreign trade movement Is
unsatisfactory. and exports OF goods and
| commodities are not now holding their
customary relations to imports. Admit
| ting that various influences are operating
on the country's foreign trade at the
present time. among them the gradual
| spread OF economic reaction over the
world. II In clear that last years tariff
| revision 10 producing awkward results
Our Imports should tend to fall of In
proportion with any decline In exports
but tariff changes have unsettled ordinary
relations. Until very lately Adninistra-
ton spokesman have professed eloquen,
comfort In the confusion Of alleged
prophecies that the country would BE-
flooded with foreign goods in consequence
OF the 1913 lowering of tariff schedules
There Is still no deluge. but the trade
statements for the last two months have
shown an extraordinary gain In the i'm.
port movement, while exports have beer
contracting. The April exhibit Just pub.
lished spoils the argument which Admin.
istration orators have been trying &c
make, for imports last month attained
tho largest volume for any April lr
American history. These are times ir
which American business could not well
be reduced to leaner fitness for com.
petitive enterprise against all the rest o,
the world and still be At to struggle al
all, but somehow American business md.
Itself unable to maintain Its footing ir
foreign markets. while II encounters 9
growing competition from foreign good,
| In the home market
| Apart from Its other implica lions tn,
April trade statement helps very much
TO explain the foreign exchange situa.
ton and tho gold export movement
March imports increased moro than ST..
| 100000, and this was succeeded by q
| gain last month nj ahnnf SoG Snn nm