The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-13
FINANCIAL REVIEW
OF The PAST WEEK
Reasons for Confidence Sug-
gested by Anniversary of
ReOpening.
VALUES ARE GROWING

about the tendencies Of the immediate
future. an uncertainty reflected in the
~protraetion OF stock market inertia by
another week OF apathetic dealings and
meaningless fluctuations, lends interes'
30 the recollection Of conditions a year
ago. These are anniversary days TO;
the financial community. the last iiota.
BILE anniversary Of the extraordinary
economic ear which VAS ushored In 70,
us by the European wav pant. In this
| week last year the Stock Ex hange WAS
opened TO restricted trading In listed
shares and the event marked tie definite
turn Of our business and banking situa.
ton for the better. how much for the
better the history Of the past twelve
month has testified. Nevertheless the
event uas looked forward 70 with timid-
!ty and apprehension>a there was in.
iinite|y more uncertainty about the fu-
ture and with stronger reasons tor un
certainty than exist nov for doubt about
our prospect. On the contrary, all Tia,
circumstances of the past year and all
the facts Of the present r,tuation urge
a more confident attitude toward 1916
n Il was possible a year ago TO hold
toward 1915.
'stNa " N8HA&
Stock Exchange market for about four
and a half months partial resumption
began toward the END of November.
1915. with supervised dealings In the
open in listed bonds. rrans4 lions were
protected by artificial minimum prices
and when trading In stocks was started
ON December IL business IVES not only
restricted by minimum quotations.. but
at flrst the full list Of stocks was not
opened for bargains. On D.t inner i.
three days after the exoeriir crtai OPEN
ing resumption Of the stock market. the
whole list OF stocks was admitted q
trading. but the minimum prices were
not officially abolished until me begin.
ming of last April. altaourh they hal
been practically forgotten long before.
Despite the uneasiness which was fel:
AtSout the restoration vi the country's
primary securities market An uneaslness
denoted BY the cautious steps with WHOM
the restoration Of the market proceeded.
the rehabilitation of the market, on the
New York Stock Exchange had become
absolutely Indispensable. No more proof
of h necessity uf the primary secur'-
ties marke, could have been given
than was furnished by the compulsions
which forced the reopeninx N the Stock
Exchange against all fear of a prompt
recurrence of panic phenomena. As IL
speedily turned vut tiiese Tears were
~groundless. but 1t was demonstrated be-
yond question that the country could not
make satisfactory pTogress In recovery
from shock. panic and depression with
out the securities market. where credit
is made liquid and capital is mubilizel.
With the Stock Exchange resumption
there began the extraordinary move
mert Of business and banking activities
which lyas resulted to-day in the estab-
lishneni of a prosperity whose existence
is not disputed. The movement did not
gain breadth ana aSsreseiveness until
after the middle Of last summer. but the
stock Exchange proved all the time 10
be a trustworthy herald of prosperity in
the great bull market OF 1918. Nor
could an, thing be more conclusive NJ the
change which tile anniversary Of the
stock Exchange reopeninG denotes than
tie contrast between the fears attending
tina. reopening and the current view in
wlicn those causes of fear are held.
All the elaborate r'aiaphernalia Of
regulated des at restricted prices
provided for the Stock Exchange re-
sumption vas designed to throw safe
guards ground the money market in case
OF a deluge Of liquidation of our sccuri-
ties from broad our altered position
Is In no particular more inrptessiyely
indicated III by the facts that within
the veal we a bought bach from Eu-
ropcin investors many hundreds of mil
lions OF dollars vi our bonds, notes and
stocks. that the level of our security
prices has been materially raised In this
process of absorption. that our bank
ing position has been enormously
strengthened while this operation has
been going on, and that our resources
have be,il 80 wonderfully augmented IA
tho meantime that va have been ablo TO
make loans to foreign borrowers TO an
aggregate of upward Of a billion dol
lars, Incidentally the feeling which is
now evoked TO the persistence OF foreiC,
liquidation a our securities In n OF
satisfaction that Europe still s,ch
acceptable means OF payment for the
goods and commodities bought from rs
in record breaking volume.
After such a year We might very well
cNp~ct 70 find the Stock Exchange paus-
ing a. IL has lately in oin stage Of
assimilation OF events. but the most sig
uilcant feature OF the chronicle OF the
securities markets recently has not been
the slackeI!ng OF speculative endeayor.
It has been The sustained development
Of an investment demand and tho signs
Of confidence conveyed by the operations
started TO finance new enterprise. The
elements of the prosperity which we
have regained are all being consolidated
under intelligent financial and business
leadership Tor the attainment OF a more
enduring prosperity IN the exploitation
OF the profitable opportunities which the
coming years hold out 10 the United
States as the country which will be best
equipped TO assist the constructive labors
OF peace.
That the hazards OF the future are
any greater tina they were a year ago
may we'll be doubted. but on all ac-
cunts the economic conditions In which
We face them are vastly stronger tina
was the case last December. business
il . well equipped machine. going at IA
satisfactory rate Of speed, and the power
to run II has been extraordinarily In
creased, while skill TO direct II has been
informed by novel experiences. Never
theless Wall Street seems TO have found
some particular occasion for pause In ia
activities as a result Of considerations
connected with the war.
The nuct,mtion OF tho Anglo French
bonds below the syndicate underwriting
price and the public Offering price would
seem 20 be offset as an expression OF
financial market judgment on tho pos.
ture OF the war by the nrm strength
which sterling exchange has been dis.
paying on it's rally. Whether or moi
the commitment represented ny the
A~r4lo-french loan has rendered senti.
ment a shade more sensitive to the for.
tunes OF the Allies Is a matter OF con.
lecture, but the unfavoraole phase Of the
war for the Allies In the southeastern
theatre has been "a subject OF sufficient
comment lately 10 9 that 1t nigh,
have become a factor OF stock market
| restraint.