The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-07-12
WAR FINANCE PLANS
HAVING THEIR EFFECT
SUNS REVIEW AND FORECAST
Can BE Predicted waii street VIII
Exhlbls Improving Tendencies Anew.
setting signal For Business Resunp-
ton.

New York, July 1.-THE Suns
weekly review of the financial situa'
ton tomorrow will say;
Beliigerents in the European war
who have been able to maintain d.
rect dealings with us have been en-
gagged lately in taking the financial
measure OF the war. particularly
Great Britain and France. some ume
axo the military dimensions OF the con-
fict were more accurately gagged ana
mot long since the requirements OF the
war in respect to munitions began TO
be understood. Only lately, however,
has British finance awakened TO the
task which confronts IL, and 1t Is
question IL French finance has yet
appreciated the burden devolving upon
IL for remarkably enough France Ii
the only one of the pricipal beiliger-
ents which has so far failed to adopt
any broad program for meeting the
cost of the war. Great Britain has
clearly sized up the situation, as Is
shown by the sweeping scope of the
scheme OF war finance adopted last
month. The result Of all this is what
we have been seeing in Wall street In
the past fortnight. of unsettled ana
declining security markets consequent
upon the mingfing of foreign ana
domestic liquidation speculative opera
tons for the fall.
Show improving Tendencies.
with readjustment completed at
some point, IL can be predicted that
Wall street In certain departments villa
exhibit improving tendencies anew.
which will set the signal for a wider
resumption of general business activt-
ties but 1t is hardly questionable now
that war finance especially in Great
Britain. has been responsible for some
financial disturbance here. pro-
cess of disiocation of investments and
dislodgment of funds in Great Bril-
tain was inaueurafed by the promul-
CATION of the new war loan and all
OF the oracular in utterances, when
have been coming from various quar-
tiers about the wars inevitable ef-
feet on the price OF capital and so on,
have only been a way Of saying that
processes of disiocation. starting In
one portion of the worlds financial
community. have been necessarily re-
ffected here as elsewhere.
So far as concerns securities II is
true that bonds can only be adjusted
through price changes to the ehecss
OF war on the price of long time cap.
ital. Because for the moment railroad
stocks in the main offer no promise
OF Increased dividends they tend te
fail in the category of fixed yield Sc
curities. Still. both of bonds and
railroad shares, II may be said tina,
there are offsetting influences de-
rived from the forces of expansion
which war flnanice invariably sets
free In the field of prices. Mean
while. industrial stocks continue u
furnisn factors of support for the
whole structure of quoted values.
Selling Against Arguments.
Even in the relations of the pas
fortnight there have been industrial
shares which have advanced while
the securities market as whole wal
setting back, and American industr,
seems more likely TO be governed by
making for depression. Taking tht
tion, ssaose who will sell securities to-
day are selling them against a mum.
Der of very important and persuasive
arguments for holding securities OF
for buying them.
Publication of the German note IL
further reply to Washington came sc
late In the week that the financial
community was unable to arrive al
any very definite conclusion about its
immediate bearing on the securities
market. II was doubted. however, II
the latest effort of German diplomacy
could be regarded as milking the state
OF our relations with Germany any
more unsatisfactory or critical than
they had been.