The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-04
FINANCIAL REVIEW
OF THE PAST WEEK:
Foreign Loan, Allied Gains in
War and Gamble in Stocks
the Features.
ASPECT OF SPECULATION

Three matters Of important forward
bearing stand out among the events OF
the last few days. These are the highly
satisfactory negotiation of the $500. o00..
900 Anglo.French loan and the still mors
highly satisfactory indications Of
great success in placing It: the ending
Of the deadlock in the war in the west By
a forward movement Of the Allies. with
general signs that the Teutonic Powert
were losing somc advantage on all
fronts. and the extraordinary speculative
demonstration in wafl Street. which wa
carried to a pitch Of dangerous gam.
bling frenzy.
last weeks record are favorable "a
our volumes Of business and the values
that business creates m supports. for
other developments served rather to
assist than impede the operation OF con.
structive factors. Among such develop
ments were the new direction Of atten-
ton at Washington 70 the tariff situa-
ton and other exceedingly practical
business problems In preparation for the
coming Congressional session and the
accommodating evidence afforded by a
variety of occurrences that the areas
Of prosperity throughout the country
are widening. Nor should mention fail
to be made Of an apparent slackening Of
tension in u diplomatic relations which
had subjected business confidence to SO
much Of a strain In recent months.
Wall Streets Violently excited specu-
lation for the rise In Industrial stocks
is a phenomenon Of first class impor-
lance. Superficial phases yield nothing
but deleterious results OF analysis. but
below the surface material is found for
an optimistic forward view. Nc definite
period Of distinct economic expansion In
this country has failed to exhibit at Its
outset the tokens OF speculative reckless
ness running into An e~xtravagant gam
bling mania. 1t was certainly SO twenty
years ago. and the speculative features
Of the years around the turn Of the
century furnish striking parallels with
the latest demonstration.
The outbreak this autumn has. Of
course. been only a more emphatic re-
newal and expression of the speculative
tendencies which became manifest ear
lier this year. nut 1t Is fundamentally a
response to infiationary forces which are
working all over the world. plus, In u
own country. the working Of forces for
the enhancement Of values through the
profitable opportunities for business
supplied to the richest n most re-
sourceful nation outside the geographic
zone Of war. Nor Is the ~specula-
tive history Of the autumn stock market
to trace.
After the severe break which followed
the sinking Of the Lusitania and after
the shorter n less severe break In
the sequel to he sinking Of the Arabic.
stock market was unquestionably
placed in a strong speculative position.
Meanwhile. money was being rapidly
made in various lines Of trade and In
dustry with a bright prospect Of moro
money to come INT a more extensive
diffusion Of II. while the GRO season
made gratifying progress to a brilliant
close. The rapid August influx Of gold.
together with the approach toward the
negotiation Of the Anglo-French loan.
advertised the country's financial power.
and all the impulses to n speculative an
ticipation of future profits were accel-
Grated by proofs that large profits had
already been assured to an increasing
Of individuals and enterprises.
Wall Street started early In September
to discount the successful arrangement
lotation of the Anglo-French loan.
a great transaction OF substantial beneft
In all It's major bearings on business ac-
The momentum which the stock
gathered was strengthened by the
of the loan negotiations and
fresh impulses were derived from the
allied gains In the war. The momentum
Of speculation alone accounted for some
Of the disturbing features which were
exhibited last week. especially when Wall
began to make for headlong
plunges into a miscellaneous assortment
Of industrial shares on rumors OF deals"
for new corporate combinations involving
changes Of control and competitive buy
ing.
Some elements OF safety were discern
ible in the speculation, particularly in
the fact that while the industrial quar-
ter monopolized attention the surges Of
In his department swept through
an extraordinarily long list OF Industrial
stocks instead of being concentrated in
only a few. Moreover. Il has to be
into the reckoning that the Wall
stock market IL the only one
In which all the world can indulge specu-
dispositions or gambling propensi-
ties. Public plungers, excited by adroit
have undoubtedly been maxi
the Wall Street stock market, but
participation OF more than a domestic
public is represented, and at the same
the buying power Of the domestic
following OF the movement in stocks has
abruptly swollen this year in re-
enforcement OF the absorptive capacity
by a decade and a half OF rela-
tive public abstinence from speculation
IN Wall Street,
exclamation however op N. ma, In