Evening star., 1914-02-08
MARKET SITUATION
CONTINUES PUZZLE
Atmosphere of Waiting Still
Pervades the Financial
Center.
AFFAIRS IN MEXICO
DISTURBING FACTOR
Delay Over Freight Rate Decision
Contributes to the Uncertainties
in Wall Street.
BY w. G. NICHOLAS.
-respondence OF The Star.

4.
There has rarely been time when
iinanciers, business men and financial
writer's have been more intensely puzzled
over market situation than now. The
casual student and transient operator
does not give the subject as deep thought
as he ought to and, therefore, when the
emergency arises he is usually at loss
where to look for information and sound
judgment. Examination of the problem
reveals the existence of SO many ee-
ments that the total of ignorance of the
meaning of vital features is a mystery
whose solution is necessary to a proper
understanding. Investments are as clear
ly understood by the average car driver
as by the average banker. Until a bet
ter appreciation of elementary causes is
understood by the rank and file of bust
ness men we are liable to run along in
blind sort of a way trying to be salts
ned that this is a move III the great
tide of affairs over which no control can
be exercised and that the best thing to
do is to go ahead with the best Judgment
you can muster. This is general under
standing and is the reason Why so many
people are waiting for something to
happen which will help in the making up
of a business verdict
To reach a business mans proper un-
derStanding of the problem it Is neces-
sary to go back several years-the time
when the imitation of gold began to be
felt. That was at least fifteen years ago.
1t was the time when unlimited expan-
sion Of silver and greenbacks We're pop
alar topics Since the overthrow of free
silver occurred under the leadership of
substantial political agencies there has
been steady expansion in every quarter
expansion in the supply of gold in cen
ters of concentration, a movement that
carried with 1t a worldwide rise in
prices of commodities and in supplies of
currency. coin and credit English con-
soils are the best barometer of monetary
and business conditions that we know
anything about and the Importance of
that barometer is dimly understood ex-
cepting by the brightest men in the field
of large affairs. The great masses OF
appreciation of the variety and impor-
tance Of the business evolution.
With every years production of gold.
which has been running at the rate of
$4O0. 100000 to $500, ,OOO,0UU, there has been
a development in the worlds industries
which has kept pace evenly with this
making Of a great volume of raw materi-
al-goId. The pace has been very evenly
kept up. The maximum production of
gold from the mines seems to have reach
ed top a year or two ago and the quota
tionS for English consols reflect this de-
velopment AS this subject Is studied by
the masses. as it will be, better in
sight into real causes may become clear.
Effects are more easily discernible. We
see them in the prices OF commodities
and everything that enters into the book
keeping of expenses. 1t is expressed con-
cisely, but not always clearly. in the
words high cost OF living"
Cost of Living a Feature.
The cost OF living is feature of the
situation that every body can see and feel,
but they cannot understand the real causes
and they can only grasp and appreciate
the deep-down Importance of many of the
current happenings until they have
reached a greater depth in their search.
We are only in the primary stages of
our inquiries and researches and 1t may
be a generation before the true lights are
seen and the significance appreciated.
Gold being the basis of the money of the
world, 1t may be necessary to wait until
its yearly production and unmined as
well as mined supplies can be measured.
Then there Will be a substantial basis
that everybody can know the meaning of
and It's relationship to all products that
figure in our affairs 1t is not improbable
that It will be many years before the
great elements can be regulated with in
telligence and to the advantage of CIV
ilized people.
The leisurely developing changes in
Mexican conditions are at length convey
ing meaning to the outside world. The
whole fabric of Mexican news was
plastered with the sun -blackened life
fluid of thousands of dead men. women
and victims before the awful truth was
officially admitted. The civilized peoples
of earth suffered in sympathy, but could
do nothing beyond impotent cries that
succor be extended-not merely cries that
might be d!miy hears. but until a few
days ago the outcry did no good. Now,
with the President alertly in the field,
desperate conditions in Mexico are eX-
pected to brighten. So all good people
hope. and that hope, with assurances
from the White House, that vital Amer
ican interests will be protected hereaft-
er. have already exerted wholesome in
terest 1t shows hourly on the tapes and
commands respect and consideration. 1t
is everywhere recognized as a highly
laudable move not only for the country
| at large, but for the financial interests
| and personal safety of thousands of loyal
Americans.
For several days the Mexican develop
lean sentiment-businesS and financial.
Decisive action by official America to con-
fer the right to protect their lives with
weapons openly bought for that purpose
was tonicy. but at the best not volcan-
ically boisterous. The excitement was