The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-28
FINANCIAL REVIEW
OF THE PAST WEEK
Bankers Wonder How Accumu.
lation Of Money Is to Be
Employed.
ANSWER TO THE RIDDLE

Although quoted values In Wall
Street showed some heaviness in the
last few days, all tho material factors
In the financial and business situation
continue to portend an increasing re-
turn to prosperous activity In the last
half Of the year which begins his
week. Apparently what the stock mar
ket has been engaged in has been a
wholesome process Of correcting a
moderately impaired technical position.
and while SO engaged various excuses
derived from pending uncertainties In
International relations chiefly. have
been alleged as n reason for setback in
the share list. but h substantial por-
ton Of the banking community has
not beer concerned with apprehensions
Of any essential change in our pros
pect for financial and business better
ment. Wal news has not been TO Wall
Streets liking. n the newest and most
stunning defeat of the Russian armies
had a SOLDERING effect or speculative
sentiment. The more muddled char
acter Of the Mexican muddle at q time
when the country's foreign AFFAIRS were
particularly complicated with difficult
ties created by the n~ewfangled war
fare In European waters was not ex-
actly cheering. The evidence from
Great Britain that h European con-
fict required an almost s~uperhuman
expenditure of energy as well as out
lay Of capital furnished occasion for a
readjustment OF our perspectives Of the
war. The new British war financing
projected into the field OF financial
consideration an assortment OF baf-
fling questions. nor was all the routine
Of domestic news entirely satisfactory.
Some disappointment resulted from the
Supreme Courts postponement or de-
cision In the International Harvester
case as well as from the decision rem
dered In the Lackawanna coal case. The
Western rate hearing vas a reminder OF
the troubles which demagogic politics
has made for the railroad industry.
The announcement OF New York city's
bond Issue Of 81. 00o, 900 at AZ per cent.
interest was a new token Of the DIFF
ference which the war has made In
the cost Of capital as compared with a
bankers money market OF extraordi-
nary ease. Crop weather advices were
somewhat less propitious. and SO or.
There were offsets in signs that
railroad earnings are picking up and
that more and more OF our Industrial
capacity Is coming into employment
in response to the impetus which
war born trade had furnished. The
foreign exchanges contributed further
TO the inordinate strengthening Of our
financial conditions. but in the balance
which could be struck between favor
able and ~unfavorable marketwise de-
velopments. actual or con1ectural. II
would have been possible for the Wall
Street share list to have been much
weaker without exciting uneasiness or
surprise. The fact that It was not
weaker was. In q way. proof Of the
strength Of the foundations on which
values now rest and the trend Of opinion
regarding the future.
On the other hand. while the immedi-
ate uncertainties of the situation evoked
no very depressing reflection from
stocks, the market did testify to the
conservatism which Wall Street 10
practising. and conservatism In the
stock market is a measure of the cau-
ton with which affairs arc being man.
aged throughout the country. Nat
urally there Is caution. The times call
for It and require 1t, but there are
apparently a large number OF people
who think there is nothing to do but
cry restraint In h market place ana
urge everybody to n minimum Of en-
terprising effort. On the contrary.
what Is wanted Is more courageous &C.
ton in a direction of endeavor to ex-
press adequately the underlying conf
dence which exists and make use Of
the facilities which the war has added
to our normal resources for a great
forward movement in trade. industry
and finance. Rather curiously. II must
be confessed that while their feeling Is
one of sturdy confidence regarding the
future Of values our bankers are worry
ing.