New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-13
REVIEW OF THE
FINANCIAL WEEK
Tension in Our Foreign
Affairs Again Serves to
Unsettle Stocks.
TRUST IN ADEQUATE
CREDIT FOR ALLIES
Steel Industry Active-Domestic
Trade COHServative-MOney
in Unchanged Ease.

in Unchanged Ease.
Our difficulties with the Tcutonic
nations were little regarded until the
final days Of last weeks security trad
ing. Glowing prospects from grain
fields and steel and iron works, with all
that they meant for better general busi-
ness and larger railroad tonnage en-
couraged traders. The difficulties Of
financing our foreign trade, which the
week before had been considered so
serious. were assumed 20 be practically
removed, as sterling rates recovered
and arrangements were made for con-
ferences with bankers from London and
Paris. The outside public was sufficient
" cautious in its purchases to prevent
any great upturn in prices, and early
IN the week the trend was upward. Sell
Ing as diplomatic tension increased
was in no great amount and was well
absorbed.
The complete satisfaction which Ger
many promised for submarine attacks
has not been offered as prom
ised, and explanation Of the torpedo
ing Of the Arabic proved TO be merely
the judgment Of a submarine command
er that his craft seemed in danger. This,
leaving the lives and property Of our cit
liens at the mercy of the within of each
naval officer intrusted with q German
underwater craft, falls far short Of
what we expected when word came that
rights were at last TO be respected by
Germany. The vigorous action taken
in the case Of the Austrian Ambassa-
dor, who had meddled with the private
affairs Of our industry, gives reason
10 assume that the administration VIII
not tolerate any halfway compliance
with our Just demands. That Germany
was merely playing for delay became
more than suspicion.
Market a Waiting One.
Business done was not large. and in
the main the market was q waiting one,
gradually working toward higher levels
without much impetus and falling back
under no great pressure. The trading
element was inclined TO work for a re-
action, but buying by strong interests
when short selling lowered prices early
in the week checked any important pro-
fessional pressure. Railroads were firm,
and might have made some noticeable
response 10 indications of better trat-
fic were il not for fear of foreign lqui-
Gation. While no great amount was
pressed upon the market from Euro
pean sources, il was felt that heavy
offerings Of bonds indicated a large
supply OF foreign stock might be over
hanging the market at higher prices.
Industrials made irregular improve
ment. some in which profits from Eu
ropean orders could be urged going 20
new high records Such movements,
however. seemed to be based on buying
from within the financial district
rather than from outside. Until the
arrangements have been completed for
the Allies TO finance their purchases
here new war orders are being with
held, and there was little in the news
TO create any great additional interest
in war stocks.
In bonds selling for London account
was heavy. On the exchange prices
quoted we're not much under those Of
the week before. Outside obligations
in which ordinarily active dealings are
few changed hands IN large blocks at
material concessions. At the invest
ment houses il was said the Street was
full Of bonds with English stamps.
Foreign Credit Plan Soon.
Conferences to arrange for foreign
credits will begin with good prospect
Il bringing forth some broad plan
through which unnecessary movement
Of gold across the ocean Nigh. be
averted and our foreign trade be pro-
tccted from the disturbing effect OF
abrupt fluctuations Of exchange rates.
The demoralized course of the cx-
change market the week before had
shown our visitors what might be OK
pected when grain and cotton bills come
in good supply few weeks hence and
full shipments of munitions call for
payment At the same time fear of
interruption of our exports had salu-
tary effect on those bankers in other
cities who had been inclined TO feel
that the foreign exchange situation
would not trouble them and that there
was no need for them TO join New York
in relief measures.
Il is for the Anglo-French commits
sioners 10 make ,heir proposals to en-
what they need Our fnanciers, who
know how much accommodation the
banks can offer and can measure the
amount Of popular interest here in for
eign loans, must decide what measures
are practicable. The Allies have CrcaS
resources. Barring revolution and re-
pudiation, the earning power Of their
peoples for generations TO come stands
back of obligations incurred by their
governments. IL is not TO be sup
posed that we will ignore this and 20
back to payment in gold. Much gold
has come "a US and we now have more
than our own needs require.
Our Business Not Inflated
General business, still conducted
conservatively, shows as yet no infa-
tion from our expansion Of money and
credit facilities. The South. according
TO those whose business II is 10 keep DO
close touch with trade conditions, has
made remarkably little call for extra
accommodation, in spite Of all that was
said about its needs at the time of the
collapse of the cotton markets year
ago. Trade in the Middle West is in
excellent shape, with much reserve
power through the late grain harvests
and the tendency OF farmers TO hold
their wheat for better prices. Some
increase in new construction is report
ed here, where there had been quiet for
months In New England the war bust
ness that has put factories on full time
and has added so materially to railroad
traffic has resulted in surprisingly little
/ general purchasing.
Retail trade looks forward 10 fan
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