The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-19
FINANCIAL REVIEW
OF The PAST WEEK
Significance Of the January
Boom in the Wall street
Stock Market.
IT'S UNUSUAL FEATURES
Political Illusions Of Current
Influence Which Need
to Be Dispellcd.
ITS UNUSUAL FEATURES

After such a period OF liquidation and
contraction as the world has been pass
ing through recovering tendencies always
manifest themselves first In the financial
markets. Accordingly Importance at
taches to the development Of strength in
Wall Streets quoted values this month
Its significance may be moro than sea-
sonal and may even DO less than that
Midwinter booms are among the most
dependable phenomena of securities. There
IL usually lull In business, which af-
fords lecway for financial activities. The
marked Increase Of strength In stocks
last week. which was accompanied by n
steadily broadening domestic demand for
hgh grade bonds. was not Mt all surpris-
ing. Furthermore II was encouraging be-
cause II carried along a rising movement
against the persistent pressure of sales
for the realization OF substantial profits
on holdings accumulated at materially
lower levels weeks and months ago. It
was encouraging also as n harbinger of
future general Improvement in all fields.
There was however something other
than normal development i'm this par
ticular outburst of strength. 1t was in
deed owing very much to the solid po-
sition established by last years liquida-
ton operated upon by the current relaxa-
ton in the money market. II was dis
tincty tustifiable to the extent that IL
was based on the rand cheapeninv Of
credits and the increasing supply Of money
resulting from the cumulative effect Of the
iuuidations Of 1913 ON the seasonable
phases of business. There is nothing
which acts more quickly or more favor
ably ON securities after "A long depression
than cheap money and plentv of IL and
the normal implications of the money
market have been empha sized by the an
ticipated plethora TO result from the oper.
atoms OF the new banking and CURRENCY
system. although thar system can hardly
he workinv before autumn Secur,tia.
have been helped also by the promulva
ton OF the creed that good feeling should
obtain in business circles as n patriotic
obligation and by some signs OF at least
a temporary turn In trade and industry
FOR the better.
OF more potency than anything else has
been the diffusion of the idea that politi-
cal change In the conditions of business
had been discounted and that politics had
been and was going to be constructive
force. The ground for this opinion has
been furnished chiefly by suppositions
connected with the apparent attitude OF
the national Administration toward busi'
ness generally ana especially toward Dig
business This Is all very well IN ITS
way ana II has been reckohcd with mere
ia these columns IN the recent past, nut
ton. FOR the most part the eneet,Ne STOCK
market FACTOR IN inc last rev uaSs I'as
peeh the s"eiilhs schtnn,n'al llnuence
derived from something Inc suns"'le
campaish on poh,nai a.eouI''. enieny %"
ucsouh. vi .ne suppos.os nne"e' ~
iuueu 70 .i.I,s, a Nv. ,,,.a, y, o,,on.
I'.'S , VIZ t w.,,n.'.n ,o..s.a',,, ,,ross
70 conSress resnectinr the rest OF the
,,,.o, r,r., ,,,,,a ., snhyors;on ~.
pu, faot,,rs ~ which 10 trust ieris.
ia,ion
-rha occasion scam. n make II neces-
.arv and dssirah,a tn say somc things
go ~, 80, ~, ~ tho mood or IN. mo-
n"n, Rscan, debate in Congress- about
,ho n,sinss. s,a,. n, Tho Country has
,scogn;s.d w,desnread trade and indus
triai d.nression and u,.mp,ovm.nt OF
n,r,, 4, novsr 20 that noli,ics is little II
q, al, rssnnusihie FOR this situation and
,h,, Tho cn,r,rx 10 ready IN yo ahead on
th., basis ~ Nautical change made or In
w. ,n.Lirg 10 tremendous exnaps,on
NJ yo,,,mss and values and a sounder.
n,or. axtens,y. md enduring season of
,,rnsr.r;tw ,har ha, ever hesn knoxn
T.'' ,'raai,,,nns -, nrosn.ri,,, Witch h.vn
cra,t.J Tho sentiment rsaect.d in IN.
81, ,,arrs, Commute lately have e,na.
,atsd ,,,nost wholly from nolItira,
,,',,,o,., ,, h.,,o haan no,i,icoiiy ;,,,nir.,,
7, 10 ,ronsr 70 observs NJ them thar they
80, ~ haya been d,cta,eL bv an an.
- .har.,va r.ga nj por ,he hearings az
tus,nas. On tho vote 20 be cast IN the
.,ao,,on. noxt Hov.uber and tbot they
800 ,r,r, so,rcss witch have not been
conS,,cuous,, identified with business and
snanriai or,ort nor estecmed far their
hnou,.dy. ~ mia, conditions conduce
80 .,,,,, aeor, Tho nronhocf.. nv. Tho
foreca.ts 81 mon whose eminence has heen