The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-27
FINANCIAL REVIEW
OF The PAST WEEK
Mexican War Menace Makes a
Big Change in the
Situation.
EUROPE Is MUCH UPSET
How New Factor Must Affect
All Domestic and Foreign
Reckonings.
EUROPE Is MUCH UPSET

IN the past week has to be discussed
subject to eleventh hour shifts Tor the
better or the worse. now that Washington
IS coming down to earth, II Is no time
for tho business and financial community
to 20 up In the air because of the
menace Of a Mexican war When the
accident Of war usurps the field Of at
tention every other economic factor under
goes a change. In aspect At least War IL
self 10 factor for the worst, but as the
worst that can happen war may cause
other factors, however baneful. to lose
degree OF their controlling Influence.
AT the moment II Is impossible to tell.
IN face or the Mexican conflict with which
the country was suddenly confronted last
week, how an economic situation pre-
viously characterized by progressive con-
traction Of trade and dimlnution OF
profits and by the renewed lowering of
the range OF quoted values should be
affected by the prospects OF war. 1t Is
probable that the first consequences meas
ured in the markets and In general bust
ness must be detrimental. In the long
run also there is nothing to be said In
favor OF the economic advantage of war
while 1t lasts. except In SO far as 1t may
Knit people together through new
consciousness of the common interest.
Tho thoughtful mind can indeed conceive
benefits accrulng from q necessity which
compels the country to realize once moro
this very unity Of it, citizenship.
A Americans unite for whatever grim
task they may b summoned to In Mexico
differences which have divided them on
other issues will tend to disappear, and
in the destructiveness OF war will be laid
the foundations of a constructive era for
the United States such only recently
seemed the remote and unattainable goal
of vain desire. To a country racked
by the excessive prevalence Of an ex.
. .t...l 4. IL. -. Ia.
tics there may be vouchsafed through war
the boon OF u political conversion to the
recognition of hard facts and an apprecia-
| ton OF what difficulties attend construc-
tive business effort under the most pro-
pitious conditions.
There is no harder fact than var.
and IL they have to deal with Il the Gov
ermental representatives of the people are
| likely to acquire q practical habit which
has been too much lacking in our Govern
ment lately. The first signs OF this should
appear in the Mexican crisis itself when
the question Of war is handled as warfare
and not as diplomatic pretence or as a
parade Of peace The most reassuring
indication In this category would be the
elimination OF tho evangelistic fatheads
and apocalyptic Missionaries who have IN
all our relations, foreign and domestic
done their best to prevent the Admins.
tration from following the dictates OF
I ordinary common sense.
1t ts good time to get rid OF delu-
slons anyway. "The drumming guns that
( have no doubts" have in the last few
! days aroused many sleeper In the
United States from the dreamland ot
political unrealities fabricated of fine
phrases In which the American Govern
ment has been lost too long. In Wash
ington the dreamer has awakened to find
that government is not matter OF
wordmongerlng theory and pulpitcerinH
| eXhortation. but a matter OF calculatins
practice and logical results. The people
/ at large have awakened to the discovery
/ that evil is wrought by want of thought
I as well as BY want OF heart.
1t was not lack Of heart but the
| plus of IT which led to the clash OF arms
at Vera Cruz last week. 1t was not
: thought but the want Of It, which con-
tured up the spectre OF "a Mexican war
Henceforth the Government OF the people
will know that II must take thought more
! and consult emotion less in handling tho
affairs OF the United States, whether or
| the foreign or domestic side. Men OF
| affairs. II Washington learns the lessor
now read to Il, will henceforth have some
thing else than contempt accorded to their
/ practical knowledge and practical opin-
| ions because they are practical and there
fore presumably tainted with a poisonous
dollar prejudice against human rights.
Large and dominating az IL the new
factor which has been projected into the
financial and business reckoning It is diff
, fcult as yet to estimate 1t adequately
Its very dimensions are so FAR not re-
vealed, but while hope clings to tn,
| chance that war may he averted by med
alton or otherwise public dismay and he
! wilderment testify strkingly 10 the i'm
I mediate lack OF any sufficient compre
| henslon OF the situation created by III,
portents OF war.
Using the stock ma rket for illustration
because in war time quoted values arr
even more than usually the most signifi
cant OF social barometers II is safe TO shy
| that until the past week there had beer
nothing resembling an obvious discount
ing OF war with Mexico. For more thar
a year even In the most disturbing juno
lures, Wall Street seemed TO take littl'
or no notice of the steadily clouding as
poets OF our Mexican relations. The bank
ing community was all along convince,
that the policy pursued at Washington
was more conducive to a deplorable out
come than to peaceful end and finance
has not been surprised by the rapid rusl
OF Hateful developments since the reccn
episodes at Tampico which set those de
Nelopments in train. At the same tim
the stock market never. until the las
few days. reflected apprshensions Of war
That II did SO last week must be at
tributed to the initiative OF Europe an
not regarded primarily as an expression
% domestic views. although the countr
may have to follow foreign leading her,
Adhering to Il custom which has becom
a financial tradition abroad. Europe pro
ceeded on the outbreak Of fighting at Yer
Cruz to sell more OF its holdings OF Amer
lean securities. Undoubtedly Europe
troubled on it's own account nowaday
and our Mexican crisis has been an addc
factor OF foreign strain. but the signll
, canoe and Importance OF Europe's liauida
I ton OF American securities are not ma
terially lcssened by reference to othe
considerations. II Ia almost instinctiv
with European finance to reduce its CON
mitments In the securities OF a nation tina
is going to war and exchange them IA
! that nations cash. 1t makes no dff,I
! ence TINT tho United States can oveI