The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-26
FINANCIAL REVIEW
OF THE PAST WEEK
Contrasts Between Situation
Now and a Year Ago Make
for Confidence.
ASPECTS OF SPECULATION

This is the anniversary week OF the
closing OF the New York Stock EN-
change. the last of the worlds great
bourses TO shut its doors. against the
financial cyclone which was generated
by the outbreak OF the European war.
The suspension OF the country's primary
securities market. promptly followed by
similar action in all the secondary mar
kets. signalized an appalling disruption
OF the worlds financial and commercial
organization. but as one recalls the panic
and paralysis Of affairs which swiftly
supervened a year ago when numb dis
may possessed mems minds in their con-
temptation OF the catastrophe which con-
fronted civilization and contrasts them
with the banking and business condi-
lions and the state Of sentiment and
opinion in our country to-day 1t is DIFF
ficult to realize the extreme desperation
OF the situation last July. A survey OF
the happenings Of the past twelve
month only goes. however. to strengthen
the grounds OF confidence now felt in
the prospects for establishing prosperity
among US, "A confidence qualified by a
prudent regard for the emergencies and
CONTINGENCIES of the war and still some
what impaired by a diminishing survival
of impractical domestic politics, but an
actual and vital influence nevertheless
for the betterment OF volumes and values.
When the most vicious war In history.
compared with the stage Of e%nlighten-
ment at which humanity had arrived,
was let loose on the world. the unthInk-
able and what: had become almost the
unbelievable occurred. We can look
back and see hat finance was full OF
signs for a decade. accommodating rap
idly IN the year and a half before the
INVASION OF Belgium and the tearing I'D
OF treaties. that Germany was making
ready soon t. wage the confic; for which
she mad been a generation preparing.
But until the war came We all refused
to credit the evidence of our eyes, which
saw but refused 20 see the impending
imminence of the war.
The result OF the shock was an eco
Honl!c cataclNsm and the measure OF the
aWful financial and commercial upheaval
OF last August amt September is, by
The token Of our changed and hopefui
position now. the measure OF the major
reasons for an optimistic attitude to-
ward the future. Men and a vhole
country which have achieved so much
against such desperate odds can surely
count upon overcoming whatever OBJ
stacles and difficulties lie ahead, our
trst task last autumn was to recover
a rrm fotlng. That done. our trade. in
dustry and finance proceeded to go for-
ward until We are unduestionablv in
the swing OF a new movement, which
hou Irregular and feverish as Yet.
promises TO carry Us through all acci-
dents TO such strength that when the
war ends the United States will pro-
vide an economic rallying ground for
civilization and furnish support for the
gigantic labor Of restoring tn. shat
tered buriness and financial structure Of
other nations.
Despite new developments in the war
adverse 10 prevailing sympathies here.
despite the uncertainties OF our inter-
national relations involved in the con-
troversy which was preclpitated by the
blowing up OF the I.usitania, despite the
disturbing extension among u. OF a
propaganda Of sedltion to American in
terests and despite the ou~tcropping Of
labor troubles connected by reasonable
suspicion with the alien organization
OF a conspiracy against the general
welfare OF the American people. the pas
week supplied striking proof OF the
great alteration in our circumstance
In the past wear when Wal Street spec
ulation gave an emphatic. even IL ex-
aggerated. expression OF confidence in
the outlook for profitable Industrial ac-
tivtties. lnordinate as the latest out
burst OF speculation may have been.
az least for the moment. and too spe-
cial as II may have been in It's direc-
ton into the so-called war stocks, there
could be no more unmistakable sign
that the spirit OF despair. which was in
danger Of becoming rife a year ago.
had given way 10 the spirit OF enter
prise Of which speculative operations
for the rise are a traditional token.
Viewing the recurrent Wall Street
phenomena OF 1915 to date in their
broadest significance Il Is worth saying
that there is no such speculative en-
deavor when there IS nothing stirring
in the field where values are created
and nothing to anticipate, I, Is also in
such speculative phenomena ~ have
been witnessed lately hat usually there
first appears the disposition TO take a
chance with the hazards Of the un-
known which spreads to general busi-
ness In widening circles until We have
new enterprise, something that has
been Increasingly lacking in our do
mestic. financial and commercial world
for several years past. with the corse-
preston before the outbreak OF the war
accelerated the pace of contraction and
decline.