The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-06
FINANCIAL REVIEW
OF The PAST WEEK
War Order Business No Longer
Sole Stimulus to Pros
porous Activity.
OUTLOOK FOR RAILROADS

ITauitiOns OF December STOCK market
irregularity. halt and slackness. which
have not always been maintained and
which rave to contend now against the
operation Of powerful constructive forces
In the money market and general busi-
ness. have held Wall Street still In the
state Of check administered last month.
Peace talk and political discussion have
helped to keep speculation quiet. The
excessive congestion Of export freight on
tho railroads, which has required aome-
thing In the way Of an embargo. has d.
rected attention to some Of the dificul-
ties Of prosperity. but aside from specu-
lative inertia ehere has been plenty Of
continued activity In various fields
which shows that intrinsic values arr
being enhanced.
Investment demand for securities out
standing Is not 40 extensive as Il vas
simply because new securities Of ap-
pealing attractiveness are now coming
out. Tho brilliant success of the Balti-
more and Ohio refundins bond rams
action II Of vastly greater Significance
for the financial and business future
than an interval of desultory dealings
and surface uncertainty Of price move-
ments In the stock market. SO also Is
the buoyant activity Of trade and In
dustry. There 10 no letup IN the for
ward buying Of iron, steel n other
metals. OF lumber and Of textiles. Rail-
roa earnings are rolling up new records
In gross m net N banking conditions
still gain strength and ase from the
steady inflow Of gold from abroad to
augment banking reserves.
so far ~ the war Is concerned the
financial community Is inclined TO at
tach a good deal Of meaning 70 the
growing weakness OF German and Aus
trnan exchange. while British and French
exchange have been recovering with
some frmness. These are the tokens of
= situation which does not conduce TO a
great p~rolongation Of the European
struggle. Tho thoughts OF our bankers
and business men are. however. lees &C.
cupied with the war factor In our COM
mercial and financial prospect than they
were. They are turning to the possible
ties Of achieving a more stable pros
perity in the period of peace. using the
enormous increase OF our resources as a
result Of the war to establish founda-
tons of permanence for u structure OF
values raised in the prosecution Of do
nestle n foreign enterprise.
There can be- no question that the
kTOuIu vi " pIobpclNs ~ bcie
broadened. Mr.. Vanderlip's well ad-
vised direction OF attention last week to
the certain n not distant curtailment
Of wal created trade was hut an indi-
cation of the extent to which plans and
projects for the future are now taking
into consideration the inducements to
enterprise offered by our perpetual OPP
portunity for domestic expansion and by
the enduring International commercial
relations which our great store of wealth
and our splendid productive equipment
will enable US to cultivate. Already the
LIT OF domestic enterprise has begun
to he Of more consequence than the ex-
istersce OF war orders In our markets and
one OF the things which Wall Street has
undoubtedly been rejecting In It's stock
market a has been the shifting OF our
business conditions TO a wider BASH.
There is no doubt that the stock mar
ket has been marking time. for one rea-
son. because Of the transition from war
Influences exclusively TO conditions where
the factors which are to govern IN the
future will be more operative. Neverthe-
less. Wall Street has given a stubborn
IL somewhat inert vote OF stock mar
ket confidence In the outlook for values,
even when domestic political contingent
cies have been advertised as containing
portents OF disturbance IN the Congress
sional session which begins this week.
CnQuestionably some line Oh political
purposes has been awaited. especially
with respect TO Administration policies.
for the Administration should have n
good deal OF control over the party IN
power. whose chances for a return 10
power depend on the favor In which the
Administration Ia held by the electorate
next year. Although II II likely that the
politicians will not be able 10 damage
very much the prospect for prolonged
prosperity which has been vouchsafed
Wall Street realizes o much politics
can do TO hinder or assist the country's
business progress.
A great chance will 10 lost II Con-
Gress merely avoids tho enactment of
obstructive n destructive legislation.
Constructive enactment can DO much to
promote u prosperity Al q time when
financial and business confidence has
recovered 50 strongly a. 10 evinoed by the
activity and strength Of the investment
market. for investment is the main
sprdng Of enterprise In the modern bust
ness world. The whole situation In re-
lat!on to politics Ia illustrated by refer
ence to h extraordinary opportunity
which Offers TO encourage railroad de-
velopment by relieving the railroads
from the Gripping restraints Of oppres-
sive regulation.
The railroads nave always contributed
enormously to our eras Of business sx-
pansion through their expenditures for
extension and Improvement OF transpor-
tation facilities. They can be Just as
great a factor In the immediate business
future II investors are once more encour-
aged by public policy expressed in rail-
road regulation to venture capital largely
into tho railroad Industry.
Good news and bad news about the
railroads continue to 30 together. The
carriers are making larger earnings thar
ever before and their position and credit
are being helped 10 that extent, but they
have been hurt 80 much In the past
that they lack capacity to handle pres
ent and prospective traffic and the ooun-
try's business interests nave already be-
gun to suffer from the congestion OF
freight. At the moment when these
facts command recognition Washington
dispatches announce that a movement
Is on foot. championed by Senator I'm
derwood of Alabama, for an investiga-
ton OF the condition OF the railroads
under Federal regulation. At the same
time point In given to the argument Of
necessity for such an inquiry by the an
nouncement OF the Interstate Commerce
Commissioner refusal to reverse It's rul-
ing compelling the Eastern trunk lines
to give Up their steamship servtce ON
tho Great Lakes.
II a no predicted safely that the
public will not find its welfare ad-
vanced by the divorce which has been
decreed between the railroads and the
steamship lines which they have been
u%perating on the Great Lakes. proh-