The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-04
Meaning Of Strong Recovering
Tendencies Shown in the
stock Market.
ADvERSITIES DISCOUNTED
Sentiment Finds Reasons for
Encouragement, Especially
in Railroad Rate Case.

and foreign. the extreme of depression was
succeeded by very sharp rebound. This
was less pronounced IN Europe, where
conditions bearing on values are in every
way less satisfactory than in the United
States but the rally I'm Wall street was
quite encouraging. II was general and
dealings tended to expand on advances.
The excuse for the rebound was furnished
by the sudden change injected into the
Mexican situation through the medatory
Intervention Of the leading South Ameri-
can nations, but sooner or later some
other excuse would have done just as we'll.
The fact seems to be that the position
OF securities. which has not been intrin-
sically weak at any time this year, was
greatly improved by the exaggerated coll
lapse which the Mexican war menace in
duced by compelling an outburst OF
liquidation from abroad. where the por-
tents Of war helped to unsettle affairs al
ready seriously disturbed.
The market in the last few days dis
played decidedly increased ability to ig-
more irritants ranging all the way from
the clouded concerns of the Missouri Pa
c!fc, the New Haven and the Rock Is-
land railway properties to political effects
and aspects. This very ability was proof
OF technical strength resulting from the
series of declining movements to which
tho share list has been subjected in re-
cent years and especially to the cumu-
lative consequence of the rapid recur-
renee of reactions in the past twelve
month. 1t would not be surprising
henceforth to find that the market as a
whole reached "A week or ago the
lowest average OF 1914. Much depends OF
course on the nature Of events In the near
future. but 1t is always reasonable TO
ct, hot ~ ~ t,sh n, al In =
been endured fortune may wear a
friendler men.
Using the terms OF Wall Street. the
professional traders ~ last week drew to
its close were inclined to say that there
was too much new found optimism about
to Justify expanding Engagements for the
rise. but there never are and there never
can be too many bulls of securities at a
reduced price level. There can always
be too much company on the bear side At
any level, but IL is only after n great lif'
In prices that the growth of long commit
ments becomes a danger to the market
position. This position at the present time
appears to be stronger than on any oc-
casion since the conclusion of the 1897
1908 panic period. In proportion tn the
securities listed and the Wall street
equipment for investment and speculation
il Is doubtful indeed IL the position in
securities has been contracted to such
solid state in twenty years as 1t IL to-
day.
None Of these considerations. to be sure.
is "a guarantee OF what Is called bull
market, but there Ia no question that
quoted values are in good shape to re-
sist the impact Of unfavorable happen
!ngs and to reckon. more than for
long time past. with matters IN the cate
CORY of possibility which can contribute
to the improvement " value. AS the
financial community cast up its accounts
week ago it saw reasons for maintaining
hopeful expectations in this respect. and
tho business community may like to know
that one of the gratifying features OF the
financial record OF the past few days was
a distinct betterment in feeling regard
ing the outlook. This did not express II
self in absurd forecasts OF an early ros-
toration OF widespread prosperous ac-
tiyity, but II was reflected in married
return OF confidence in the secured worth
OF American values quoted in the IAN
guage OF money.
our Mexican lmbroglio cannot he
treated As "A negligible factor Of restraint
on improving tendencies. The difficulties
involved therein are serious and optimism
Is bound to he qualified by doubts as 10
the outcome of the negotiations which
Argentina. Brazil and Chile So oppof-
tunely inaugurated. Still the negotiations
themselves have already accomplished
one desirable good. They have given
time a chance tn assist in the solution or
the Mexican problem and time IL great
solver Of problems. The mediatory In
terposition assures at least an interval IN
which all the parties to the Mexican con-
troversy can cool of. and there is some
warrant for indulEinE reasonable antic'-
nations of a successful outcome OF tho
negotiations.
Huerta himself may be eliminated from
the difficulty either BY his own action
or by the triumph Of the rival Mexican
faction. Apart from that the south
American nations which have interviewed
we're precisely the countries above all
Others best fitted to deal with the critical
emergency that impended week ago
Working on their side Is their sympa-
thetic comprehension of the Mexican people
and a purpose friendly To the United
States. Huertas weakness ana the
strength of the Mexican rebels are also
operating in behalf OF the mediators Fur
ther,nore they have popular support ot
the United States, which has no banker
ing for war despite the tumut or In
cendlary marplots. Last but not least
the European Powers are Interested in
making and keeping the peace II they
can for Europe is In no condition, as was
shown in the last ten days OF April, to
welcome an international conflict involv-
any important nation.
There is, moreover, In all this Mexican
muddle "A chance for doing big thing.
That diplomatic fiction known as Pan
Alnericansm may attain some OF
the substance of reality as re-
suit of 1t, and II would he al
together fortunate IL affairs in Mex
leo should he arranged SO as To promise
Il long prevalence of orderly political and
economic stability. In relation TO Mex
leo. even while hopes have been ra's'd
that war may he averted. II would be just
as we'll to keep in mind the hazard of the
worst events. but we do not have accord
ingly to dismiss favorable contingencies
and considerations.
Ii would seem 10 he true, however. OF
the Mexican matter, as of other influences,
thar except for relapses which may be
precipitated the financial and business
world has made adequate response to
most OF the adverse conJectures that are
not MERELY imaginable but within rea son.
II II this fact which more than anything
else underlaid the stock market rally last
week. That rally was testimony to two
things the evident depression OF Amer-
can values below their line of permanent
worth and the position in which tho mar
ket had therefore been placed 10 reflect
more encouraging influences.
A very substantial influence OF the sort
was furnished by the argumentativc con-
clusion OF the Eastern railroad rate case.
Much of the opposition to the petition OF
the railroads for permission to make a
moderate increusa in their tariffs shnua1