The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-30

The Real wall street.
With the foreign exchange market
all out OF gear, with gold being ex-
ported In record volume, with the grain
markets jumping, cotton and other
commodities falling and securities
breaking under selling pressure slim
ulated by European panic, despite all
these and other reflections OF the men,
ace of widespread economic disaster of
fered by the European crisis, American
finance has kept both its head and Its
feet. To Wall Street Il need Of recog-
milton for its admirable performance Of
valuable services in trying times is
more than due from its various vilifiers
who have abounded 50 plentfully in
recent years.
Washington, which has been so ready
TO assail the country's financial centre,
should not overlook at this juncture the
account which Wall Street has been
giving Of itself. Nor, let us hope, will
the Wall Street annals Of the European
war crisis escape the attention of the
living out OF propaganda directed
against the gambling features which
are the inevitable and unpreventable
accessories of a primary market for
money and securities.
With all its gambling faults, Wall
Street. which is ultimately summed up
in the securities market that it con
ducts, has this week shown its true
self. What has been witnessed there
has been the real Wall Street, not the
Wall Street of popular fiction and
political romance. The real Wall
Street is the economic synthesis of the
American people, the total of their ma
terial achievements, ambitions and es-
sential qualities of character; and its
latest significant exhibition under the
strain of desperate circumstances should
earn for It a better appreciation of
its relations and functions than has
obtained.
Ever since the dark cloud OF gen
eral war spread so swiftly over the
European sky there has been demon
strated upon the New York Stock Ex-
change, not forgetting its auxiliary. the
Consolidated Stock Exchange just what
tho renl Wall Street Is, the measure at
any time OF the solidity and stability
which the American people have devel-
oped In their economic life. 1t concen-
trates American resources of wealth.
enterprise and capacity in the largest
and most serviceable aggregate and
renders them available for the uses OF
trade and industry by means OF the
stock and money markets.
Directly under the shadow Of the
war cloud financial Europe at the he
ginning OF the present week proceeded
70 60 out OF business. Half its stock
exchanges were closed after a series Of
violent pancs, and on the rest utter
decentralization was indicated by
practical cessation of dealings. In the
European money markets both rates
and transactions alike have been re-
ported as only nominal and no gauge of
tho real situation. The financial dis
rlptiOn abroad communicated Itself to
other parts Of the world and evoked n
similar response of paralysis and pros
tration, the principal stock exchanges
IN Canada. for example having closed
their doors.
In all this time Wall Street ha,
maintained the only money market
from which gold could 10 Withdrawn
in quantity for foreign needs ms well
ms domestic, aud the only market In
whi'h securities could he converted in
quantity into the equivalents OF cash
or crclit. only in wall Street this
week has there been market In which
much business in st~ks could he done,
and the frenzy 70 sell securities excited
by European developments subjected
the American market to an extraor-
binary test.
The way in which the test has been
endured Is evidence of the substantial
realities OF American finance stripped
of all the unrcalities with which 1t has
bern obscured in the public mind. Let II
be noted also that Wall Street has done
It's work this week without any of that
statutory transformation Of machinery
end conditions which has been the goal
Of 80 much reformatory zeal
Wall Street nj all times Is the conn
try's vote Of confidence In itself or the