The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-02
FINANCIAL REVIEW
OF THE PAST WEEK
How the General situation
Looks at tho Approach
Of Spring.
EASY CREDITS BIG FACTOR
In Other Respects January
Hopes Have Been Matcri-
ally Qualified.
EASY CREDITS BIG FACTOR

the next few weeks there should be de-
velopments going to show II and how
soon the hopes which began TO flourish
In midwinter are likely to be realized In
the actual expansion of prosperous ac-
tivity. Winter according to the calendar
has ended without OH the whole qualify
Ing intelligent expectations OF better
times ultimately. although inmodcrats
excuses OF optimistic enthusiasm have
not been Justified by events. February IL
not apt To be ut all conclusive OF the
annual outlook but together with the
confirmation which the last few weeks
have given OF earlier evidence that the
financial world turned a very bad corner
last year there has been afforded proof
OF the continuing necessity ~ effectng
further readtustments OF banking ana
business positions to changed conditions
before constructive efforts can be con-
Quoted on a sustained scale Of expansion.
February reactions were not pronounced.
either In the stool. markets or In trade.
but February traditions were kept up In
this respect and reaction included some
modification OF the overblown rosy senti-
ments which blossomed forth in January.
II was demonstrated that the mere
chronicle of occurrences did not const,-
! tute a complete settlement OF political and
other problems. and that some OF the
ecstatic calculations with which 1914
opened needed u prudential revision.
/ Nevertheless It can be said OF the i'm
mediate situation that the circumstances
leading up to IL afford more warrant
/ for anticipations OF constructive progress
than the contrary. subject to the tests
which happenings from time TO time will
apply to Nh economic organization that
has been only lately severely wrenched
and strained.
Syvg no -
normally slack. not only at homo but
throughout the world. This slackness Is
rejected in easness OF all the credit
phases OF the money market. an easness
even more extreme than can be measured
by the relaxation attributable to the llqui-
dations of the recent past Investment
inquiry has lapsed again. Politics. not
only OF the domestic but OF the internS-
,ional variety. in still In state OF con-
siderable uncertainty. which is not COLI
duclve to the full restoration Of financial
and business confidence. New enterprise
Lays or is lacking in most countries. show
ing how extensive the impairment OF
confidence has been. as well ms how seri-
Gus has been the check administered by
the limitations of capital supplies re-
sultiug from an inordinate waste Of cap-
tai and from the apprehensious with
which breaches OF the worlds peace and
programmes OF social sutyersion have
| inspired the poss.ssors Of capital. There
are bills yet to pay for public and private
extravaganza. Adaptations have yet to
be made by corporate endeavor to new
lines of legality. Altogether there are
many reasons for tempering the exuber-
anc- OF January hopefulness as the real
work OF the year begins. but there are
prevailing reasons for adhering to hope
full views. projects and commitments.
Confronted with enormous difficulties the
world has handled It's affairs SO we'll
| since the summer OF 1912 that now. with
the worst of its troubles apparently over,
IL Is hardly likely to let its determined
effort to establish a firmer economic foot
ing count for nothing.
Foreign concerns obtruded themselves
on domestic considerations last week,
somewhat to the exclusion Of home mat
| tiers except In 10 far AS these related to
| the Mexican muddle. There were not
only the Mexican Developments but Eu-
rope furnished reminders that the con-
| sequences OF 1918 had not been fully
| overcome. Conditions at Paris, which
are OF IA peculiarly puzzllng nature, were
forced on the notice of all financial mar
kets, and general warning was given
that the recovery OF prosperity was not
something to he pursued by any great
nation independent Of other nations. News
| of direct domestic interest indeed en-
phasized this warning. For example. the
| country's foreign trade statement for
January. with its exhibit Of an import
| decrease Of $500 900 and an export de-
crease Of more than s23. 00o.0 900, the total
shrinkage being about S32, 600. 900, showed
what part must be played In the trend
OF business at homo by world tendencies.
! In our own case this is probably more
true now than II ever was because Of
the extent % which home markets have
been placed by tariff revision on q world
basis Weekly reviews Of the iron and
steel trade were especially significant In
! this regard because Of their reference to
the selling activities exhibited here by
foreign steel makers. although their ef-
forts are SO far more effective In keep
ing steel prices down than In depriving
home mills OF orders.
1t would be a mistake to pretend that
financial opinion Is reconciled to the
Washington policy which has led the
| country TO such tuncture as IL repre-
| scented by our present relations with
Mexico. with their coroliary Of distortins
| our relations with Great Britain and
France among other European countries.
Doubt a. to the outcome Of the Mexican
imbroglio Ia one of the current factors OF
| restraint on financial and business enter
prise. II these doubts should be soon
| resolved II 10 likely that the sequel would
be more satisfactory than any one cares
| to predict. For one thing Europe would
be relieved of "A degree Of strain by WASH
ington's adoption of more aggressive
| tactics toward Mexico, and in that degree
pressure would be somewhat lifted from
American finance. However. the convic-
| ton has been growing that watchful wait
Ing would shortly have to be abandoned
for aggressive action, and present calcula-
lions are being made along the line Of this
conviction. Also II the Administration
| has been averse to energetic foreign
policies which might obstruct the execu-
ton OF its programme of domestic legisla-
| tive enactment II can be assured that the
| time has arrived when business would
welcome impediments to further legisla-
tive alteration In the terms of trade and
Industrial endeavor. The obstinate prose-
| cution OF III advised schemes for the
statutory restriction Of corporate organ
ization and enterprise has provoked an
| increasing protest in the business COM
munlty and stubborn insistence on q
wholesale extension OF Government inter.
ference with business affairs has to be
counted az one of the influences Of the
moment adverse to trade and Industrial
Improvement.
So far as general business goes Il seems
TO be best In some lines OF merchandising,
but business requires more than the con-
sumptive demands Of bare existence needs
to yield profits proportionate to tho en-
gagement OF capital and credit In COM