The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-15

Europe Is collecting all the gold II can
but strain has left the credit markets
the world and much drastic liquidation
has eliminated weak elements In the finan'
cial and business structure. International
peace is not assured, but the Balkan war
has not whetted the appetite OF civilized
nations for more disastrous conflicts. In
many II not most of the material respects
In which comparisons may be made be-
tween 1914 and 1912 the differences all
40 to warrant belief that recovery from
economic depression should not be far OF.
The most important factor In which there
has been no change for the better. In
which II anything, there has been
change for the worse. Is represented by
domestic politics In leading democracies.
destructive punitive and subversive
radicalism has deadened the spirit Of new
enterprise, without which trade and Indus
try languish. The very quantity Of wide
expectancy with which the decision In the
Eastern rate case has been attended II
evidence OF the remarkable ascendency OF
the political factor In. the economic do
main.
No review OF the past week can be COM
plete without reference to the swelling out
of the gold export movement With
takings of about $4,000, 900 OF che metal
last weeks total outgo made a record for
any similar period. 1t brought the gold
exports for the year up to more than
S5i. 900. 600. and foreign exchange experts
predicted that the present movement
! would continue until anywhere from $751;
100000 to s25,000.000 more had gone.
The fact that such drain Of gold could
be contemplated without uneasiness Is q
token of the extremely comfortable posi-
! ton OF the money market Moreover. be-
| cause there has been practically no adj
vance selling OF exchange here against
| commodity exports later. there is reason
| to assume that before the end OF the year.
should any return OF our gold be required
| for our banking purposes, 1t will be sent
| back In volume at least equal to the
present shipments.
Meanwhile II receipt OF this gold helps
the European financial readjustment so
much the better for ourselves. The I'M
certainties OF the European situation have
| been initiating against economic recovery
everywhere. June was bound to be try
| ing month abroad, but II Europe gets
| through II without serious difficulty the
turn OF the midyear Is likely to And
| foreign finance more disposed than It has
been In q long while to assist and promote
recovering tendencies.
Until affairs abroad definitely assume a
more favorable aspect the financial and
business reckoning here cannot be con-
| fined chiefly to an estimate Of domestic
| factors. The tremendous strength OF for
| eign exchange. almost unprecedented at
| this season in It's extreme indication Of
our adverse international monetary posi-
| ton can be explained on many grounds
which are not provocative OF uneasness.
| Nevertheless no explanation In complete
which does not include the persistence OF
politico-fnancial unsettlement In Europe.
particularly in France. The whole finan-
cial world will breathe more freely when
1t can note convincing signs that recovery
| and expansion, not contraction and depres-
sion. are once more the European order Of
1 tile day