The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-27
FINANCIAL REVIEW
OF THE PAST WEEK
Values Subjected TO a Variety
of Unfavorable Dcvel-
opments.
TROUBLE FROM ABROAD
Disquieting Aspects Of Politics
Crops and the State
Of Trade.
TROUBLE FROM ABROAD

decline has been offered by American
| quoted values to continuation OF I'M
favorable developments with only a
modicum OF encouraging considerations
to help maintain them The suggestion
would seem to be here that II thcr>a Ia a
| further interval of financial and business
unsettlement before constructive forces
can make themselves more effective than
they are to-day. the disturbance is not
likely TO be very severe and much less
likely TO be prolonged.
Affairs abroad have provided tho most
depressing influences oxerted directly on
financial positions The European situa-
! ton has for some time impressed itself
OH careful observers as ominous Of
! further economic trouble because OF the
strains resulting from political turmoil.
domestic and international. With ad-
ditional reasons for liquidation supplied
/ by the disagreeable impression which
our corporate scandals and political in
cendiarism have made on foreign minds.
Europe affected American conditions
adversely last week by heavy selling OF
our securities in renewal of tho realiza-
lions which have occurred at various
periods In the last two years.
Weakness verging on decentralization
in the European security markets was
induced by the indication that fresh
warfare was impending In the Balkans
and along the Balkan border. threaten
ing to involve some of the ma jor Powers.
Austrias hostile attitude toward Servta
seemed to Justify all the fears which
financial Europe has felt ever since the
outbreak Of the Balkan conflict in 1912,
and fear was aggravated by doubt about
the intentions of Russia, which has per-
haps the excuse of vast internal disorder
IN NfalCODninR aytprupl diCf rnrt ton. The
highly unsatisfactory turn Of Irish home
rule politics agitated British finance, and
Paris. the worlds centre OF persistent
financial strain, was responsive to
variety of weakening factors which pro-
voked widespread concern for the out
come.
The European money market hard
ened and the rise IN london discounts
was partly responsible for the rapid re-
covery OF foreign exchange here % level
at which gold exports were resumed with
the engagement Of $4,000 900 for Paris.
the third movement of the year. and bring
ing the aggregate for 1914 up TO $4,000,
600. Foreign security sales contributed
to this advance in exchange and more
than Offset tho output OF commodity ex-
port bills and the volume of finance
/ bills offered 10 make n seasonahle resort
to the London market for credits always
available to American borrowers in the
summer except when the American debtor
position is overextended or London Is
| in far worse case than Il Is to-day.
Another cause of the adverse tendency
OF the exchanges was also rather de-
pressingly indicated in the country's for
egn trade statement for the fiscal year.
This showed that in the anal month.
June. the revised tariff still stimulated
record breaking imports. the gain over
June. 1913 being about s26. 500. 900. while
the fall In exports was maintained al
though at a decreasing rate.
a bright spot IN the stuarion was tho
beginning In earnest Of an enormous
foreign demand for our wheat. Accord
ing TO the International Institute OF Agri-
| culture at Rome the worlds total wheat
crop Of the year will he about 3ia per
cent below the 1913 aggregate. while the
American crop OF wheat will be OF huge
/ proportions and will yield US an export
able surplus fully twice the annual aver
age. This prospect cannot he damaged
/ materially by any impairment Of spring
wheat which has on the whole been doing
+ satisfactorily.
In other respects however. crop condi-
| tons have lately contributed nothing "a
an increase OF optimism. Field and farm
. have not been doing 80 well since the
/ July crop report was published. The
weather has been urpropitious, with eN'
cessive high temperatures and lack OF
rainfall over large areas. while there has
been in many sections a dlsquieting WIS.,
itation OF bug and Insect pests. The corn
/ crop especially seeing TO have suffered
deterioration in the last few days for want
/ of rain, and Il must be remembered that
corn did not in the early part of the sea-
son promise more than normal yield
Trade and Industrial advices have failed
| TO report the maintenance of such better
/ meut as appeared toward the end OF June
! I'd No
! ity OF Improvement in number OF direc-
! tons az a result of the wheat harvest
| already made and the fair agricultural
| position which Is still held in the main
/ But that actual business did not square
with hopeful sentiment was denoted by
| the idle freight car report az OF July Is,
| showing a net increase OF 1000 cars in
| sdetracked equipment during the hrs'
| half of the month
| For the rest the aspects and occur
ronces Of politics have prevailed against
! arguments for the Ivturn of confidence In
] the near future OF prices. The abandon
mcnt OF the plan for the REIMBURSEMENT oil
! Rock Island finances was one more token
| of the difficulties encountered In these
! days of political aninosity toward large
| corporate enterprises by those who in a
constructive spirit endeavor to institute
processes for the rehabilitation OF values
| The abandonment of the plan WAS adj
| Nertisemcnt among other Things or an un-
| changed programme OF political inquisitior
! into the mistakes of the corporate past
not so much with a view to safeguarding
| the future hut to confer on the lnquisitors
whatever political advantage may accrue
! from exploiting ignorant prejudice against
| combinations OF capital
4 more malign advertisement OF politl-
| cal unfairness was given IN the fashion
in which the Administration suddenly re-
| fused reasonable assistance TO the dlsin-
! tcgration Of tho New Haven propertie,
along the lines OF tire compact made with
| the company and Instituted a dissolution
suit OF sweeping dimensions against the
unfortunate corporation. Tho manner in
( which both civil and criminal litigation
against the New Haven was abruptly be-
gun was not reassuring 20 the financial
/ and business community. which construed
! the action OF tho Government as "A reck
less surrender TO demagogic clamor, Sc
/ regarded. II was moreover surrender
which offset the hopeful import of I'resl-
dent Wilson's repetition OF kindly remarks
about business enterprises in the CORE
| spondence with which the Jones nomina-
| tiun to the Federal Reserve Board wa'
/ Withdrawn.
Congressional discussion OF the Jones
case and the general line OF Congress
sional action in the business field are still
anything but conducive to II restoration OF