The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-01
Indications That the Foreign
Situation May Be Turning
for the Better.
POLITICS DIsCOURAGING
Mistaken Attitude Adopted by
the Administration Toward
Business Conditions.

tons were furnished last week that IN.
European financial situation might be near
a turn for the better and this was the
nest marketwise news OF the whole week.
We can wei anord to have moro reasons
than already exist for a restoration OF
confidence In the prospect for American
business and American values and IL
means much to us n things are In the
way or mendlng abroad, IL Europe 4,
through with destructive processes and IL
gong In for season OF upbulldlng. IL
VIII mean foreign purchases instead OF
foreign sales or American securities and
an increased consumption Of American
goods and commodities II will mean
the provision OF new capital to many
countries where IL Is greatly wanted and
this supply OF capital will promote enter
prise and stimulate recovery in the
worlds trade
1t Is still too early to be certain that
an actual change for the better IL i'm
pending In Europe and reserves OF caution
IN accepting hopeful opinions respecting
the Foreign situation are necessary on
various accounts. Nevertheless, the Euro
pean security markets appear 10 have been
cleaned up and crippled positions OF dan
eerous Importance seem to have been
eliminated. As II was with foreign IMAM
cial disturbance that the worlds troubles
began In the autumn Of 1912. so logically
IL should be with improvement at Euro
pean financial centres that worldwide
economic recovery should commence. II
may be that there Is nightly effort
under way abroad to create auspiciou.
conditions for the long delayed French
Government borrowings and that the
more cheerful foreign financial aspect IL
therefore artifcially induced, but a large
release OF financial activities should fol-
low " the French Government loan has
satisfactory reception.
,.lx IL
begin to move more freely through all
markets and apprehensions about the
significance OF the competition for gold
between leading nations would be dimin-
ished. Indeed. one OF the propitlous signs
or the past week was the apparent with
drawal OF Continental gold grabbers from
the competition which has been preventing
the Bank of England from building up Its
reserves to dimensions proportionate with
tho increase OF other European gold hold
ings. We should not, however, entertain
decisions about the gold movement
Our renewed exports were almost
doubled last week. to more than $780,
600 and to an aggregate OF more than
s3?. 000, 900 for the year so far. Foreign
exchange eased off, but subject to in
terruptions we are likely to ship large
amounts OF the metal at intervals for a
protracted period. Granted the most
favorable occurrences II Is going 70 take
some time to change our present adverse
position in the international money mar
ket. but what Is OF chief consequence IL
that Europe needs more gold nowadays
for banking purposes than II has ever
held. Past figures are useful only as
showing how much .gold has been alto
gether too little to accommodate ordinary
economic expansion, leaving no margin for
sudden severe strains.
Domestic prospects were rendered more
in.t eli hx,A pr, nat n
developments. Crops were reported on
favorably in the main and the foreign
trade convention at Washington added IT.
self to other indications of recent busi-
ness gatherings that American men or
affairs are looking ahead to an era OF
new growth. At the same time various
matters In the category or politics were
brought to attention which were not con-
ducive to a widespread and early In
auguration of forward business effort.
All the baneful influences OF politics
were summed W In the declaration by
| President Wilson to the OHIO and III
no,s manufacturers who called on him
on Thursday. that while he was aware
| Of the present depression OF business
there was abundant evidence that II wal
merely psychological" The manufao
turers went to the White House to urge
| a postponement OF tho Administration
programme of antitrust legislation In
order TO give business rest from politi'
| cal agitation. The Presidents answer
was in so many words notice that the
Administration knew better than DO
American business men what In good FOL
business and what business needs
The whole episode was convincing
betrayal of that lack of comprehension
OF business facts and conditions which
has made our politics such an obstacle
| to business recovery. At all times thu
present Administration has talked Of
business matters in a language which II
not the language OF ordinary business
It has discoursed beautifully Of new Law
making In the business field as an eman
cipation of business endeavor. It has elo-
quently conceived business as moving
clumsily 10 the clank of gripping fetter,
which II was the duty OF the Admins
tration to strike OF. Yet not at any
time since q year ago last March ha.
an authoritative note been struck a.
Washington which conveyed to business
minds the idea that the party in power
had a sympathetic practical understand
ing OF the difficulties Of constructive en-
terprise.
The announced determination OF IN,
President to disregard business protests
in pursuance of his purpose to procure
the enactment of a mass OF laws estab
fishing new contracts between govern
ment and business fits his academic con
|
lions. There Is of course very much tc
be said for the psychological influences
which affect trade. industry and tn,
financial markets, and Wall Street at least
is always prepared to assert that senti-
ment is q most potent factor in the crea-
| ton OF values. At the Same time the Ad-
ministration's description Of business az
suffering from depression which 1,
merely psychological reduces othel
factors to Infinitely lower terms than II
warranted. II Is description which
obviously excludes from the causes o.
any economic depression everything
which Is not to be found In the catalogu,
Of calamity such as crop failure. q de
structivs earthquake or a great war.
True as II 10 that business depends or
| confidence, which IL psychological phe
nomenon because II 10 q state of mind
confidence 10 primarily induced by facts
The mind OF business works on facts ant
a mental state results which IL helpful
to business activity or the contrary, bu
obtains to-day can be explained away al
merely psychological" There arc othel
influences to account for. and some of tn
most important of them are poiitica
facts. European politics has had hts shar,
in bringing about the foreign collaps,
that has had such uncomfortable conse
quences for the whole world and has hat
more than its snare In causing q vast,
OF capital which the whole world will
! probably be some years In repairing. Al
for the political factor at home, he woulS
be blind who could not sec It In the re