The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-29
FINANCIALREYIEW
OF H PAST WEEK
Values Apparently Rest on
Foundations Of Strong
Support.
NEW ENTERPRISE AsTIR

irregular. with some superficial heaw-
ness, seems to have satisfied the re-
ouirements Of seasonal influences nor
maliy conducting to such phenomena,
as we'll as to rave gagged the posture
of the abnormal forces which the Euro
pean war has brought into play. In the
last few days Wall Street began to show
evidence Of what Ia called q better feel
Ing. There was . moro general renewal
Of optimistic attitudes toward the out
look for continuing the processes OF ex-
pansion In values based on the profitable
business conditions which war factors
have done 20 much 20 establish and on
which domestic affairs are operating
for a prolonged period OF enterprising
activity In which new enterprise will be
a feature that has been lacking for q
decade.
One cause Of the underlying hrm-
ness which the share list has exhibited
in recent weeks Ia that seasonal In
~fiuences for reaction have had to work
without the assistance Of tendencies
toward money market strinEency such
a. are customary in the last quarter OK
the year. Tho money market has not
even been hard. for lending rates OH
collateral security and commercial paper
alike have lately dropped to the lowest
Of the year, despite the growth OF
bank loans. The plethora OF funds
seeking investment and OF lending ca
pacity seeking employment liz still on
tho Increase. recruited by the rapid ac-
emulation of Immense profits In many
branches Of business during 1915. by
the rehabilitation OF a vast amount OF
credit among borrowers and by the
great augmentation Of banking reserves
through the installation OF the Federal
reserve system and the enormous amount
Of gold which has come to u shores
in payment for our extraordinary ex-
port trade.
Meanwhile confidence to use these
funds and this lending capacity has beer
heightened by the proofs of the advan-
tages, temporary and permanent, accru-
ing to our country on account OF the war,
assuming that these advantages are in
diligently awaited of to consolidate our
financial and business position In the
future. That they are coming under the
direction of business intelligence Is tes-
titled &c by the conservation OF the coun-
try's progress in prosperity 80 far amid
unprecedented temptations to profigate
recklessness and by current tokens that
Our captains of industry are engaging In
projects for a mobilization of tho re-
scources represented by our windfalls of
war fortune in order to assure our inter-
national ascendency after the war.
Wall Street. having taken its bearings,
finds in considering the securities mar
kets that the investment demand if
strong and persistent. The implications
Of sustained alu thus conveyed are
incidentally strengthened by the ofncial
.,,a,,,,N,,a, chat tho prttiSh Cavern
ment Is seeking to impound British Mold
ings Of American securities, presumably
for the purpose Of making them availa-
BILE for the collateral loans which Amer
lean finance will grant more readily than
IL will extend IT, present commitments
in unsecured loans to the ~belligeren'
nations. incidentally also the effective
ness Of credit arrangements already
made is displayed In the frm retention
of the recovery Of sterling chang II
the 40 level. a circumstance which is
propitlous for the maintenance or our
export trade.
with respect to stocks. Wall Stree
finds that the force of constructive ar
! Cuments derived from the business and
banking field has not been diminished
but has been maintained in the Novem'
Der interval. Domestic politics look as
though there might be disturbing occa'
s!ons in the coming Congress session
but not for any years have practi
cal considerations given so much promise
of governing the deliberations or Con
gress. The mind of the people has beer
turned 10 the thought of prosperity anc
how to preserve It with honor to thu
nation In our foreign relations as wei
as with peace at home. The Administra'
| ton, with next years elections In sight
will have fully as much power ovel
| Congress as II has ever possessed. ant
the inclination Of the Administration II
moro practical than It has been at any
time since President Wilson was inau'
gurated.
The stock market itself has been tenn
pered by reaction n irregularity. I
has benefited by a letdown In tho trad
ing, which approached dulness earl,
last week. Rest has helped II, and l
has moreover been tested by bearlsh ex
periments to discount u~nfavorable pos
sibilities, which have seemed. on thu
whole. to be far less weighty as con
tingencies than the certainties OF tn
prosperity which our trade, industr!
and finance have recovered with an ex
cellent outlook for further gain. TIL
selling which the November stock mar
ket passed through has unquestlonabl!
left II In a better position 10 reflect tn
prosperity. actual and prospective, ant
careful study of the situation yields th'
conclusion hat there Il more to lool
forward to on the constructive side o
the account than quoted values as
whole have discounted.
A survey OF business facts disclose
the solid foundation which has been pu
under the stock market structure AM
Il is not necessary to disparage the wa
munitions industry in order To accen
tuate the domestic influences for bet
terment. Contracts for wax orders ar,
responsible for much Of u Industrial
commercial and financial activity. The!
are large In volume with an ample mar
gin OF profit and new contracts are still
being negotiated, but this branch o
business Is not of so much consequence
az II was because tho domestic move
ment has gained volume and impetus
The most obvious proof OF prosperou
conditions III to-day furnished by tn
state OF basic industry, where there 4
more fear that the markets will e
ahead too fast than there In OF any pro
longed setback,
Holiday retail trade Is NOW coming in I,
add TO the expansive impulses and rail-
road traffic and railroad earnings are a
index of countrywide business animation
East and West, as shown by such report
as those of the Baltimore and Ohio an
the Southern Pacific for October, railroa.
gross revenues are now breaking a
records. Nor Is this exhibit TO be dis
paraged by bringing II into comparlso
with the panic shrlnkage Of last autun
or the contracted movement in 1913. 10
greater operating efficiency acquired /
lean times will produce results |
larger net Incomes, In turn there wi
be a material strengthening OF railroa
credit so that before long. the none