The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-04

l OF the lenders on collateral security to
curb immoderate aleatory endeavor by
keeping the rating Of fancy stocks for
loan purposes at low figures. and in
doing 80. moreover, the margins which
they will thus enforce will protect the
general price structure.
If speculation could be restrained
within some rational bounds desirable
results would be accomplished because
a financial situation IL developing which
will conduce to a sound expansion of
enterprise II the spirit OF enterprise
now 20 exuberantly displayed in Wall
Street can be directed to an expression
Of itself In useful channels. Impair
rnent Of the technical position of stocks
through the unmistakable distribution
that has been going on in industrials Ia
materially Offset by the possibilities Of
restoring tho balance through a better
absorption Of more seasoned descrip-
lions and by the increasing strength Of
conditions outside the market. The
basis for appreciation Of quoted values
ID substantial. II Is denoted by large
and quick earnings Of many business
and banking concerns, and the stock
market processes Of ~discounting them
have . very valid optimistic signif-
canoe. They imply clearly that business
betterment will be stimulated.
Moreover, there are very encouraging
financial signs in the effort which Is
boin9 engaged 20 make. as In the Anglo
French loan, such a Wise use OF the re-
sources which tho war has augmented
for 10 that the risk Of d~issipatins chem
In q Wild imitation OF productive enter
prise will be lessened. M best pre-
ventive Of the danger Of an abuse Of
credit for crazy speculation Is the em-
ployment Of credit for the realization Of
an enduring business opportunity such
~ appears In the chance which the war
has given us to become a great foreign
trading nation. q mercantile country
which creates trade by making loans.
SO far as Wall Street conditions go
the position OF the securities market can
b made decidedly better as soon as 1t is
recognised that the argument for ex-
travagant commitments In a host Of in
dustrtal specialize. 10 an argument for
intrinsic Improvement In The value Of
more stable and more seasoned sec,l-
rifles identified with the permanent bust
ness interests of the country. Absorption
Of such securities has been taking place
quietly. hut moi on any sufficient scale to
redress the balance of the market. The
soundest speculative " well as invest
ment possibilities do not offer to-day
in the stocks which hav 20 heavily dis
counted a future hat wac never dreamed
for them, but in the Issue which must
beneft from such a broadening Of pros
perous activities a Is closely connected
with h purpose of the Anglo French
loan. an undertaking profoundly in
volved with the necessities of normal
trade and industry.
1t takes new enterprise to make bust
ness in this country broadly active and
prosperous. and the great foreign loan
eo auCCessfi11v opa,ivup,o nj. od q pnt DpIy
a herald Of new enterprise. but it is in
itself an extraordinary departure in new
enterprise in the direction Of the foreign
trade movement, which mas been the con-
trolling factor in this years business
recovery. As for the LOAF transaction
nothing but satisfaction can be felt In
the record which II has been making. and
nothing but confidence can be derived
from It. Evidence Is piling up that the
American investor knows a bargain
when ne sees II. as in the case of the
Anglo-French issue. and that the BUSH
ness and banking intelligence OF the
country Is awake to the opportunity
that has been given by the loan to pro-
mote the interests Of the country in
foreign trade. Altogether the most
promising aspect Of the foreign loan
operation Is its guarantee that American
finance will be embroidered to move fur
ther along the lines Of this departure
in world banking. with the inevitable re.
suit Of advancing and consolidating the
position OF American business in for
oign markets.
1t would be idle to pretend that the
military events Of the past week did not
figure in banking and business calcula
tons. TIT discerning opinion of the
however II respects the for
malities Of official neutrality, long G
agreed hat the defeat Of the Allies in
the war would be disastrous to civili-
Accordingly military events
suggesting a turn OF the tide Of war to
the side of the Allies could not be con-
strued otherwise than as helpful 10 our
own interests. and signs Of this were
undoubtedly seen in the stock market
and In the widespread applications for
participation In the Anglo-French loan.
Our volumes and values were already in
q posture OF constituencies TO the military
outlook for the Allies. and while the
loan will not diminish sens!tiveness to
.unfavorable events in the war II will
make for an even more prompt response
to what is regarded as good news from
the seat Of war. That the o was a
unless our trade and industry
were to suffer does not alter this facl.