The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-12
FINANCIAL REVIEW
OF The PAST WEEK
Wall street Adjusts Its Posi-
ton to Requirements
Of the War.
OPTIMISTIC

BeIllPerefts Ill tne FsuTopthh wal WV
have been able to maintain direct deal
ings with us have been engaged lately
i'm taking the financial measure OF the
war, particularly Great Britain n
France. Some time ago the military d.
mensions OF the conflict were more accu-
rutely gagged and not long since the
requirements Of the war In respect to
munitions began to be understood. Only
l,tely, however. has British nance
awakened to the task which confronts
II. md 1t Is n question II French nance
has yet appreciated the burden devolving
upon II, for remarkably enough France
IL the only one of the principal bel
ligerents which has so far failed to
adopt any broad programme 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 nance adopted last
month. The result of all this IL what
we nave been seeing in Wall street in
the past fortnight of unsettled and de-
clining security markets consequent upon
the mingling OF foreign and domestic
liquidation with speculative operations
for the fall.
With readjustment completed at some
points. 1t can be predicted that Wall
Street In certain departments will ex-
hibit improving tendencies anew. which
will set the signal for a wider resump-
ton Of general business activities, but
1t is hardly questionable now that war
finance, especially in Great Britain, has
been responsible for some financial dis
turbance here. A process OF disloca-
ton of investments and d~islodginent OF
funds in Great Britain was inaugurated
by the PRONUNCIATION of the new war
loan and all OF the oracular ~utterances.
which have been coming from various
quarters about the wars inevitable ef-
feet on the price OF capital and so on.
have only been a way of saying hat
processes of dislocation. starting in one
portion OF The worlds financial COM
nunity. have been necessarily reflected
here as elsewhere.
There has been going on a realign-
ment OF prices and a Encouragement OF
commitments In securities. a more or
less confused shifting about In the whole
financial market made up OF credit in
s;ruments and monetary supplies. with
corollaries in the loan market whether
the market for bankers money or for
fixed investment funds. In other
words. our finance has been accommo-
dating the new phase of the war de-
noted by British and other calculations
OF the monetary requirements and ar
engagements to meet them and some such
intervals Of accommodation at success
stve stages of the war have had 10 be
counted on from the beginning.
The adjustments rendered necessary
are almost automatic. how automatic
Is evinced by the way in which an ir-
creased supply If our securities has
been coming back TO us from London
Il was only "A litile while ago tina,
We We're doubling IL British investors
would release their holdings of Ameri.
can securities RI any quantity and wish
ing that they would do so in order t.
provide acceptable means Of paying the
grC wing balance OF indebtedness accru'
ing against London In the ~internationa
exchanges. We now see that the lates'
and greatest war has its way OF takint
care of difficulties OF this sort just Il,
have all past vars.
OF course, the economic arrangement
which result from war are at theii
best unpleasant, but II does not appear
that there is any valid ground for re-
garding the Wall Street developments
OF the last few weeks as adverse to =
prospect for achieving in this countr!
a substantial degree of profitable ant
prosperous trade. Industrial and finan'
cial activity. What IL Sgnihed IA
rather that the times call for discrlmi
mating intelligence In the direction oi
effort and in the application OF fnancia
power to the realization Of such eco
nomic opportunity as the war does no
impair. a. well rs such opportunity ~
the war itself creates. ON the Who'll,
our industrial and trade outlook war
rants confidence that intelligent en-
deavor. c~ourageeusly pressed, viii carr
due rewards.