The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-15
FINANCIALREVIEW
OF THE PAST WEEK
Values Apparently Reflect In
fluences Working for Bust
ness Prosperity.
STREET READJUSTMENT

tie tendencies of values and general
business In this country can only be
strengthened by contemplation Of recent
developments and by their reflection In
the Wall Street securities market, which
II more a primary market h ever.
The evidence which his market gives
Of conditions II prospects Is that the
sistently stronger and that the regard
OF the financial and business community
toward the future Is confident.
one OF the most significant signs Of
the situation has just been afforded by
the announcement OF a policy Of inn
proveinent expenditure for the United
States Steel Corporation. The very COM
retent body OF business men which di-
reefs It's AFFAIRS has decided to lay out
some S1O. 900 900 in the immediate addi-
ton OF equipment TO its already large
plant facilities. Here Is "A forward looking
Judgment which IL noteworthy not only
because II represents expert opinion but
because In every direction men OF ~
fairs are taking much the same view.
They continue 10 talk cautiously, as n
proper respect for contingencies of the
war requires. but they are acting and
spending money enthusiastically for the
exploitation Of profitable opportunities.
In other words, new enterprise has be-
gun TO be a feature OF n domestic situa-
ton which now seems to careful oh
servers TO reveal portents OF a prolonged
period Of remarkable prosperity.
The situation Is no longer To lie dealt
with in terms II recovery from the
acute and extreme economic depression
signallzed by last years worldwide
panic which the outbreak OF the Euro
pcan war precipitated. We seem rather
now To hav reached the stage OF in
clpient expansion, and while all fore
casts have TO be qualified by reference
to the ~unknowable elements of unset
tlement involved in the war. IL * mani
fest that various strong factors are
working for the prosperous broadening
of our industry and commerce. Money
has been made this year by an increas-
ing number OF our people, and ii is be-
coming available under the impulses
of heightened confidence as a stimulus
to money making enterprise generally.
We have had two years OF unprece-
dented crop abundance. and the harvest
season now ended has left agricultural
communities IN a furnishing state, while
the movement OF farm products is pro-
viding large rattle for the railroads
and making Itself felt through all the
lines Of trade. Irrespective OF the vi
cissitudes OF speculation in war muni-
ton stocks. war order industry has
furnished remunerative employment for
capital n labor and is distributing
PROFITS throughout, the land. There does
not seem to be much exageeration in
the estimates which have placed the
total contracts for military supplies 81
far AZ about Sl,ioo. 0oo. 900, and order
ing for next year IS under negotiation.
our export trade ~ military sup
plies and normal commodities has done
Tor us IN changing our whole eco
monte status in relation to the rest OF
the world is adequately cyinced in the
vast and easy absorption of our secure
ties returned from abroad and in the
uninterrupted How of gold To our shores
which has so immensely fortified our
banking position that American finance
has been able to set itself up in the
business OF banking for the world.
our railroads. with their S25. 600. 900
coo investment, are next to agriculture
in the scale of economic importance, and
while the carriers still labor under
malign handicaps imposed by stupid
politics they are making record break
ing earnings. The miracle which the
war has wrought in rescuing a great
deal Of industry from AN impairment
v Nv va 10 ~ NV llbll NbtIl-
plete insolvency. has operated to some
extent in the case of the railroads. Rail
Dad expenditure. which IL always a
corollary OF increased earnings, must Do
added To the forces of business cxpan-
sion. II the changed railroad outlook
should he still further frightened by an
intelligent political recognition of rail-
road needs. which only means a r%ecogni-
ton of what the country needs from the
railroads. the current impetus in the
direction OF new enterprise would be
greatly accelerated.
Not to carry the analysis TO excessive
length, reports from the various sections
Of tho country and from various
branches Of trade and industry all 60
to show that business is responding to a
new lift such az has not been generated
IN years. The United States Steel Cor
poration's gain Of more than SAT 900
tons in untitled orders In October was
practically unparalleled. IL there is taken
into consideration the fact that pro-
duction is now at the maximum and the
further fact that rising prices for steel
products are no check to the buying
demand. Other metal markets, particu-
larry cope tell their own story OF in
sufficient supplies except for very dis
tant delivery. All the familiar CONNER
cial statistics bear witness to the grow
ing animation OF the general business
movement from new building construc-
ton to the retail dry goods trade. The
idle freight car re port az Of November |
is "A token OF the rapidity with which
business recovery has been going into
business expansion, During October the
net surplus Of sidetracked equipment
was reduced by more than 81. 900 cars
to n total Of less than half that amount
and there Is moro than "A lttIa l.yuar
that business may lie handicapped dur
ing the winter by an awkward conges-
ton Of traffic.
Supporting the constructive arguments
derived from the foregoing features of
the situation there IL a banking posi-
ton which is characterized by "A poten-
tial capacity for the grant Of
dation such as has never been known.
Despite the resort which borrowers have
been making IN recent months TO the re-
sources of the bankers, money rates to-
day are the easiest seen in years. and
this at the advent OF the crop moving
season when formerly the whole fnan-
clal and business structure was wrenched
to put the products OF agriculture on
the market, Indeed there is nothing
in sight to send money rates materially
higher until or unless the end OF the
war brings new factors into play.
Loans have been expanding swiftly
of late. but 1t must be remembered
that there is an unprecedented basis for
expansion furnished not only by the
incorporation Of the new Federal re-
serve system into our banking struc-
turc but by the extraordinary gold i'm
ports which have been augmenting our
reserve basis of credits. Moreover, n
great deal OF the loan expansion to date
represents our engagement. of credit In
The fnreipnl field. which Lis the most de.