The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-26

the price structure. No matter what
may be the close sequel to the July
stock market, underlying conditions are
stronger in every way than they were
IN the April upswing.
Features Of Underlying strength.
Since then we have become more IA
miliar with the idea that our neutral re-
lations to the war may be altered agains.
our wishes. and a certain state of mental
preparedness has been ~engendercd which
must lessen the shock Of untoward
events. our industry and our domestic
trade are more active. the best evidence
of which Is the employment Of produce
tive capacity in basic lines. as in steel.
with prices making Al rising response.
Railroad earnings are gaining over the
returns of a year ago. and while many
branches Of trade are backward or
worse the process Of recovery continues.
New domestic impulses for forward
buying are making themselves manifest,
while there seems to he no slaCkeuing
in the forward ordering which should
give US. in the latter part Of the year,
an export trade of greater magnitude
thar has yet been recorded. Agricul-
tural portents are of unsurpassed excel.
loncc. Only last week a respected pri-
vate authority described the crop pros
I,ect as the best in thirty years. with the
exception of corn, which is late, but may
do well at that. Agricultural conditions
fortify the general situation and when
we come to consider matters Of finance
ii is hard to make up an argument OF
depressing character.
Securities have been further tested AMI
seasoned by periods Of liquidation and
the markets capacity TO absorb them
seems to have grown steadily since for
eign selling reached its probable maxi
mum months ago. As for the banking
position IL suf'ices to say that IL IL So
comfortable that no domestic require
ments. at any probable rate OF expIH-
sion. are likely TO cngage all the credit
capacity of the bankers money market
for fully two or three years to come.
The excess Of capacity gives us tie sur
plus power TO devote funds TO the worlds
uses and needs with the inevitable corol-
larry OF more beneficial reactions on do
nestle trade and industry.
Already our bankers have begun to
act In the direction OF solving the prob
lem OF the ~disorganiZed foreign ex-
changes. so that our external
on which so much now depends may pc
promoted and sustained. The $4,000
600 loan to the Canadian Government.
just negotiated in Vail Street. can
hardly BE- anything else than the be-
ginning OF a most imperative undertake
ing to receive here "A substantial total
OF foreign securities In settlement Of the
huge credit balances which are accruing
In our for ign commerce.. but which can
only continue to accrue II our com
merce is kept up by accepting from
other counties the principal means "
payment which they have at command.
their governmental obligations.
Uncertainty over our relations "a 'b.
war must qualify ali financial and busi-
ness r~eckonings. No issues have been
determined by the transmission ot the
! latest ~lSniugton note to Berlin. but no
matter what destiny awaits Va in tine
affairs OF the nations Il comprehensive
examination Of ali the probabilities. to-
gether with an Intelligent m OF
tile known facts In our business situ1-
ton. Conduce to the opinion that busl-
ness betterment Is at the worst only
likely Ia make slower and more inter
rupted progress than II the worst does
not happen. In the meantime "a COM
plete revival OF confidence Is encouraged
on domestic political account as a result
OF indications that practically = oh
tanning ascendency in the attitud. - tire
Government toward all practical ques-
lions, rang.ng from our military de-
fence TO the liberty with which trade
and Industry should be INDUCED II our
business men are to go pioneering in the
tremendous opportunity OF these war
times. The latest addition to the ac-
cumulating omens OF a saner public
policy is the decision Of the Interstate
Commerce Commission last Thursday
relieving the express companies f-om
the expressions OF the reduced rates
which the commission ordered into effect
two years ago