Las Vegas optic., 1914-12-29
CAUTION Us TOO
s
PRONOUNCED,
CLEVS
NEW YORK BANKER SAYS RusI.
NESS SHOULD BE WILLING
TO VENTURE NOW

New York, Dec. 29-The quietness
usual at this season of the year is in
tensified by the feeling of caution
which exists in all parts of the coun-
try. 1t is a fair question to ask if this
caution is not going beyond reason
and reaching stage where it must
react, as all sentiment does when al
lowed to go to extremes? 1t is quite
true there have been many reasons
for depression in this extraordinary
year of 1914 But many of these rea-
sons no longer exist; some have been
amply discounted, and others Of a
positively encouraging nature have
not yet had an opportunity to exert
their full influence. Among the rea-
sons for uncertainty which no longer
exist are the Mexican difficulties, the
antitrust and investigation manias
and the tariff readjustment These
important problems absorbed atten
ton during the first half of the year,
but since then have Deen ignored, and
for five months the market has had
to unexpectedly face the most colos-
sal war in history. The entire bust
ness world received a shock which it
will take years to obliterate. So far as
this country is concerned, however,
| the effect has been very largely dis
counted Business quickly adjusted
itself to war conditions, and is now
going along nearly as usual" In the
future this market is no more likely
to be sensitive to news indicating
peace than to news Of an opposite
character. The indications are that
the war may not last as long as at
one time feared; and, if peace chould
come within the next six months, the
financial effects will prove less di-
sastrous than anticipated, as all the
belligerents are showing much
greater ability to meet the costs than
was calculated upon. The war there
fore, while still matter of great un-
certainty, has been we'll discounted
in this market, and should not pro-
duce any further material depression
unless disasters occur which at the
moment seem beyond the range of
probabilities.
This brings to- us another set of eau
SEES which are Of .qgullr.eiY en- ees'reeina
nature, and which tnus far have mad
little or no effect upon business or
stock market values. Chief Of these
is the clearing of the political atmos-
phere. There has been a most strik-
ing chance in The attitude of the fede-
raj government and the legislature
toward business interests. The dis
position now is to aid, not hinder,
business which had suffered serious
| ly from unreasoning hostility At
last the country realizes that the
sherman law under the new inter-
pretation is sufficient to protect the
people against the abuses of monopo-
lly: and if any doubt on that score
exists the new Clayton law makes
assurance doubly sure The beneficial
effects Of this change have not yet
| had an opportunity of expressing
themselves. Business has adjusted
itself to the new tariff; and, though
some of the changes work harshly
and may come up for rectificationt
the tariff as disturbing element has
been relegated to the rear, This IA
vorable development has also escaped
attention. Another step forward OF
supreme importance is the reconstrus-
| ton Of our banking system upon
scientific lines, and in stricter accord
ance with long recognized necessities
I
The new federal reserve system made
a splendid start on the road to sound
and progressive banking. The coun
try now has an elastic currency sfs
tenn; also plan whereby the bank
ing powers of the country are con
Icentrated, with the power Of contro
distributed somewhat IN accordahct
with the importance of various sec
tions. The new system is not yet il
full working order, but has already
shown its potentialities for good, ant
the country now possesses a Sinancia
organization better able to cope witt
financial crises than any which w
have hitherto had This is anothe
favorable factor which has not heel
adequately reflected in either busl
ness or financial circles. Still an
other encouraging factor has asen
good harvest, which saved the countr
from serious setback and imparte
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