The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-07
FINANCIAL REVIEW
OF The PAST WEEK
Monetary Facilities Ample for a
Recovery Of Volumes and
Values.
RAILROAD TEST OF CREDIT


raging in Europe goes on without reach
! ing a stage where its determination can
| he regarded as definite all surveys OF the
| financial and business situation have to
! be qualified by regard for the factors OF
| the war. Tho uncertainties OF it's dura-
| ton. the contingencies OF its varying for
| tunes and the great unknown quantity
| % its outcome after the awful destruction
| of wealth in which the chief element Is
! the waste of human life make all read
I ings OF economic conditions more or less
tentative. Nevertheless the present fiuan-
cial and commercial facts offer encourage
inent TO an expansion OF banking and
business effort In response TO the hopeful
possibilities OF the future. especially as
! this expansion cannot for long while
take the form of new enterprise
There is so much In the way OF loss
to lie regalned that warnings addressed
| 20 tho necessity OF caution In expanding
business ventures become counsels OF per-
fcction. Certainly In the spacious neu-
! trail zones OF the world there Is opportu-
nifty To carry along tho benehcent works
OF peace. and nowhere in this area is
the opportunity SO great as in the United
states. Moreover facilities are again
provided FOR normal business activit!e.
and 1t is this which affords a basis for
cool headed endeavor to rehabilitate vol
! umcs and values. The machinery of com
mcrce and finance has all but been re-
stored in every department and never has
there been in the worlds money
such vast capacity for accommodating
demands for credit as exists to day. Cap
.tal Is being consumed with terrific
rapidlty In tho conduct OF the war but
war finance and other causes, including
the change OF banking systems In our own
country. have resulted In an enormous
Increase In the lending power OF tho mar
ket for temporary credits and this Is the
striking economic phenomenon OF the
times.
Leaders OF affairs are OF course feel
Ing their way. Still progress in one d.
iectlon or another has lately become al
most "A matter OF daily record and mo-
where more pronounced than in Wall
street, where general conditions bearing
on values are summed up and reflected
conferences at London In which our
banking representatives are participant
ing suggest that presently both the Lon
don and New York stock exchanges Will
he doing business as usual or nearly 80
and nothing could offer more convincing
testimony than this that matters were
in shape for the increasing resumption
of activities in trade and industry and in
the markets where trade and industry are
financed.
50 far "a Wall Street is concerned II is
not apparent why, unless international
IL.
London stock Exchange should be waited
upon to open the Stock Exchange doors
here to trading in corporate shares. 1t
is highly desirable to move all dealings
in securities from the dark to the open
and Il IL gratifying to note that an add
vance has been made along this limo by
the publication Of official prices FOR A
partial list OF stocks preparatory to an
early transfer Of trading from the stock
Exchange Clearing House to the Stock
Exchange floor. With such restrictions
and safeguards as have been placed
around transactions in bonds extended 10
the stock list all positions would be ade-
quately protected in a state Of open bar
gaining. Al least the large number OF
shares in which the foreign interest is
small or nothing would seem to contain
no chance OF menace. and the sooner
regular Stock Exchange business can be
resumed the better.
II is all very we'll 10 say that invest
ment needs have been met and can he
met without AN extensive lifting OF tho
emergency embargo on business In secu-
rifles but such "A view denies the func-
ton OF speculation. 1t even falls to rec
oCni2e the speculative content IN the OPP
cratiops OF investors. In tho degree to
which speculative dealings in securities
have been going on recently in the I'm
TIED range permitted they have tended
to promote the return OF business conf
deuce. There is an old saying that when
there j. no vision the people perish.
When there is speculation in Wall Street
il means that people are looking ahead.
and signs of the speculative anticipation
OF future profits are among the most
trust worthy guides which general bust
ness has for its own commitments,