The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-30
FINANCIAL REVIEW
OF THE PAST WEEK
Significance Of the Widespread
Speculative Stagnation
Of the Times.
NEW ENTERPRISE IS DEAD
Capital Waiting for Tokens Of
Conditions on Which 1t Can
BE Employed.
NEW ENTERPRISE IS DEAD

same situation shows itself in general
business which Is almost void Of its Gus
tomary speculative content represented
by anticipations Of future demand that
spells profit.
There are those persons in large num-
Der who profess to see in this absence
of speculation proof of tho soundness Of
economic conditions. and are rather in
clined to regard tho stagnation Of the
speculative markets of the world as .
very excellent thing In itself. Indeed ono
might think that the goal Of n good deal
Of strenuous striving had been attained
in the elimination of speculation and that
civilization was TO be congratulated on
the achievement. Yet, unless the social
organization IL to be- transformed and
new economics In to be created which
shall be something else than a science of
wealth interpreted In terms OF property.
the speculative situation furnishes oc-
casion for intelligent regret and real APP
prehenson.
Speculative activity Is the usual ex-
preston Of the spirit Of enterprise. Some
day. perhaps not far of. speculation will
revive. unless private capital is to be
abolished. but the revival will testify to
a new stirring OF enterprise generally.
There Is no speculation to-day because
there In no new enterprise Capital Ii
not seeking employment in the develop
ment of resources and equipment for the
increased production and distribution Of
wealth.
In our own country, as the FIRST calen-
dar month Of spring ends, there IL more
idle labor than in years and more slack
ness OF trade and industry. Prices on
which business has to be done are weak
enlng In most directions the hope
Of the business community for improve
ment Of volumes and values is still de-
ferred.
A suggestion Of the reason for all this
Is contained In the enormous absorption
OF attention. not with the routine Of pros
porous endeavor or preparation therefor.
but with the discussion of social end
political questions. The news which
weighs on all minds comes from govern
mental centres. Nor In II only in the
United States that this is the case. Brit
ish thought Is preoccupied with extraor-
binary political developments. French
affairs are deadlocked in the embrace
Of politics. Meanwhile 1t cannot be pre-
tended that since n year and a half ago
the world has been emptied OF /. profit
able possibilities of economic adventure.
The business prospect which seemed 80
fair before the eyes Of men in the summer
OF 1912, when speculation was very much
alive and new enterprise was projecting
Itself in every direction, has not been
destroyed.
The good earth Is st,li here to yield It's
increase OF harvests and II has yet to be
ransacked OF mineral stores In comparison
with which the mining that has already
been done IL nothing more than a pre-
limnary. There are forests to be cut
and more forests to be grown. The fields
can support vaster fiocks and herds than
have ever contributed to the support OF
1at .tsl -
built and old cities to be rebuilt and en-
larged to accommodate the teeming races
OF men. The manufacture and trans
portation OF necessities and luxuries and
commerce in them will provide employ
ment for ever swelling armies OF workers.
II We confine regard to our own coun-
try exclusively the facts Of profitable OPP
portunity are convinongly apparent. We
have no population to compare at all in
density with that which can be main
tained on our continental territory. Yet
We are engaging all our energies in trying
to solve social problems which have their
origin In the political issues and theories
OF overcrowded western Europe and seek
to fit them to the circumstances OF our
own society. What about provision for
accommodating the population which
within few decades will be shown by
the United States census to be 200, O0O, 900?
One OF the most abominable and mis-
taken assumptions of the age. one that
has particularly perverted American APP
probation OF facts. II that the problem OF
economic production has been solved and
that II remains now to solve the problem
Of distribution. THIS leads w into all
manner OF fallacies Of political dealing
with established enterprise and conducts
directly to tho enactment OF laws on the
hypothesis that the principal expansion
Of industrial and commercial endeavor
has already taken place.
The plain truth OF the matter 10 that
We do not, that the whole world does not.
produce enough of anything for the salts
faction and convenience OF man. II we
seem to produce ON a satisfactory scale IL
Is only because production Is not cheap
enough. Furthermore. In the face OF pro-
ductive opportunity, our resources have
been hardly scratched. There are gener-
atoms OF marvellous development and
prosperity ahead Of U.s.
Why, then. In the spirit of enterprise
dead? Is the explanation to be found In
anything else than in the widespread unset
Element Of contemporary social conditions
in the actual changes already wrought in
the lines Of business legality and the
threat Of more? Does anybody believe
that the disturbing aspects Of the crisis
which has arisen In Great Britain are
furnished by the Ulster phases Of tho
home rule controversy? Ia II not mani
fest that what IL really involved hera
In the democratic movement In the United
Kingdom, and the terms which. accord
ing to Its success. will be laid down for
the ownership and control Of property?
The illustration Is no doubt extreme,
but would British enterprise be likely 10
move forward In the face of n general
election which might return to power a
more radical Liberal Government than
Mr.. AsQuith's. a Government headed, for
example. by Lloyd George?
There 10 usually a philosophical ex-
PLANTATION for economic phenomena, and
most excellent argument can be made for
the proposition that speculation Is dead
to-day. and new enterprise 10 dead be.
cause the spirit of economic adventure
has been paralysed by the uncertain out.
comes Of worldwide social unrest What
IL to be the reward OF adventurous risk?
This 10 not to say that the worlds
democratic movement has been without
Just cause or grievance or without a ra-
tional end. We all may hope that Ameri-
cans are enough a part of their own time
to realize the valid grounds of the move
ment and synnpathixe with Its purpose
Human progress Is nothing more than n
history OF the rise of the peoples TO
power. hut the way In which power IL to
be asserted 10 q question 10 important
AZ inevitably to hold economic activities
Tn, ,nNn