The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-23
FINANCIAL REVIEW
OF THE PAST WEEK
March Securities Markets So
Far Have Lacked Definite
Significance.
SOME HOPEFUL ASPECTS
Values in Favorable Position
to Respond to Political
Encouragement.
SOME HOPEFUL ASPECTS

/ 70 VI ucuHlto SIBUluCdnCS TOT the Seuuc
Of the year only when the markets max,
pronounced and positive movement
There has been nothing Of the kind II
the last three weeks. nor has indefinite
ness been confined to Wall Street Sc
curities abroad have worn much the sam,
negative aspects and have wabbled abou
In much the same fashion as they hav,
here. On the whole there has perhaps
been more foreign than domestic weak
ness and reaction, but nobody has beer
able intslligently and safely to infer from
thing was being witnessed except At
understandable recession from the brie
January boom or whether the market,
were engaged In a preliminary discount
Ing OF an unfavorable prospect
As a matter of fact the sensible sug
eestion OF the stock market has beer
that the controlling factors of the yeai
were not yet In sight These may bt
chiehy the progress Of the agricultural
season and the harvest outlook. They
may be the outcomes Of politics. domestic
or International, or both. They may b.
the continuing effect OF tho condition.
which brought on the commissions Of 1918
and the fate of the positions weakened
In those disturbances. They may be the
Developments In the money market, al.
though Of the situation In money and the
monetary outlook finance seems more as
sured than Of anything else. Whatever
the reasons. the securities markets have
SO far this month been vacillating affairs.
with the price fluctuations OF less conse-
quence than the contraction OF trading.
There has been much softness in special
descriptions, but there has been even more
special strength. So-called standard
issues, the customary media OF specula-
ton and investment. have been fairly
steady and their resistance to pressure,
either OF happenings or OF sales. has in
duced a degree of hopeful sentiment SO
far AZ regards the professional attitude
toward quoted values. II has lately been
more bullish than bearlsh. The markets
have acted as though they were com
pctely sold out. " Is known that most
corporations are reporting lcngthening
rolls OF shareholders. Stocks have seemed
to be In scanty supply and potential
scarcity In the face OF any marked SWELL
ing OF demand has been implied thereby.
Except In the shrinkase Of dealings stocks
have made no general response to adverse
news. They are not ruling at high prices
and they have shown stability under the
test OF dulness. Money is cheap and
promises to remain for a prolonged period
at levels with which security yields even
allowing for some slight reduction Of tho
average OF dividend rates. present an alb
normal disparity.
So runs tho professional argument
Outside or public interest in securities still
seems to be held in abeyance by the I'M
certaintles of politics and OF the world
wide trade situation. Affairs abroad
appear especially to offer considerations
hardly calculated to induce important
operations on the constructive side
OF the stock market. 10 encourage
public speculation or stimulate invest
ment absorption. Cheerful thoughts of
spring are all very well in their way.
and so is the reasonable probability that
we are about to start on a successful
crop season, but men OF means. large or
small. would apparently like TO know more
about what Is going to happen in Europe.
which always exercises a good deal OF
control over our own economic events
ON the European continent there Is spread
ing industrial depression. which initiates
against the worlds trade prospects The
international political atmosphere Is in
nnitely more satisfactory than IL was a
year ago, but II is still not an atmOs-
phere in which finance can breathe freely
Mr.. Churchills statement the other day in
the British House of Commons, when pre-
senting the naval budget, that the whole
world was srmins as never before is
very much to be desired. Moreover the
astonishing increase OF projected miltar-
istic expenditures for 1914 bids fair "a
prolong the excessive withdrawal OF CAPT.
tai from the productive channels OF peace.
full effort.
New financing has made but slow prog
ress abroad in proportion to the vast
amount OF 1t which has to be done before
financial activities are released for the
Freedom of cd
high price which capital commands. to-
gether with the congestcd state into which
the investment market tends to fail unde,
the output OF new securities, Is ,videnc.
that capital supplies are not available IN
satisfactory abundance. There Is pc
culiar and unsettling condition OF con
scstion at Paris which Is tho result Of
several years OF reckless distribution o.
French funds over a huge mass OF securl
ties issued by the so-called newer countrie,
OF civilization. In the meantime matter,
or domestic politics have aggravated Flu
ropean uncertainties. The Caillaux Anal
| in France may have consequences which
cannot now be conjecturcd and does not
| in any event. lend itself TO optimistic fore
| casts OF speedy termination of the dead
| lock which has come to obtain between
French politics and French finance Their,
| are involved In this deadlock economi,
| az we'll as governmental questions upoi
! which there must be some agreement
| before one OF the worlds most importan
| financial matters viii become a sourc,
Of stimulus for = new forward economi,
| movement,
This also is the case with the so.allc,
| Ulster crisis In the Irish home rule con
troversy which IL perplexing Great Brit
| ain. The fate OF radical liberalism an,
the fortunes OF reasonable conservatism
may for long time to come, depend OF
the way in which the Ulster situation Il
| handled. 1t has been very difficult 70
people in the United States to take serI
ously the talk or civil war with which thu
United Kingdom has been threatened Su
| the greatest OF all the financial centres o
| the world, London. has taken very seri
ously the menacing possibilities involve,
In the Ulster crisis.
| Apart from other aspects OF the situa
ton In Europe II has a direct interest 70
US in the fact that Europe IL no longo
"A buyer OF American securities in guam
| tity. but is on the contrary "A persistcn
seller. The European selling dispositio
| Is caused In part by European needs an
| In part by the competitive attractions q
the new securities which are available /
| European markets However caused tn
effect for us IL the same. II means tina
we will have to find. to n larger exten
than In the past. the funds with whic
our economic development Is financed.
means. moreover, that for a while on
problems Of financing will be complicate
by an acceleraung tendency OF gold
leave the country. Eventually our ne,