The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-29
Foreign Factors In the situation.

Altogether the most interesting feature
OF the stock market In the last few days
was the rise OF railroad stocks and some
standard Industrial issues against and
through liquidation for foreign account
Nothing could better evtncs the inciplent
strength ~ speculative confidence when
one recalls tho fearful tlmldIty with
which Europe's investment position ~
American securities was not 70 lorr
go regarded. Il Is a question now Z
tho financial community would no, be
pleased we're there more assurance that
our stocks would come back from abroad
in quantity proport!onate 20 our increas-
ing power 20 absorb them.
For one thing there would be no such
pressing problem as foreign exchange
row presents - Europe's release ~
American securities we're enough 20 p-o-
"ide the means FOR settling the enormous
foreign credit balances which Ne are &c.
cuu'ula'!ug In consequence ~ our record
breaking export trade and the great re-
auction 81 our import trade. together with
tho large decrease of Indebtedness which
We have cus-omarily contracted abroad
IN a variety OF extratrade ways. TIE ex-
tension Of credit. 70 Europe would he
vastly s'rpllfed II accommodation could
Ne granted on the collateral - good
American securities hvpothecated with
our bankers. Nor would there he 50
much necessity 81 arranging credits Or
Europe ~ our securities we're coming
back fas. enough 20 provide correction
FOR the weakness o, tho foreign ex.
changes, which are almost, too much IN
our favor 20 he satisfactory.
European exiGenc.es are going 20 COM
pei persistent liquidation % foreign hold
ings ~ our securities. This liquidation
wi! hardly fall from time 20 time 20
overtax mo%'nentar!ly our ahsorpt!ve ca
/ pac'ty. hut emphatic testimony seems
20 have been given 10y Wall street 70
The effect that the forward march OF
American business and hnarc will
hardly be prevented by wha We have
been wont 20 speak of as the debtor
status 81 the United states as ev!nced
IN Europe's American Investments.
Some talk there has been OF the pre-
valllng Influence OF hopes FOR ar early
peace ~ the European war ms the major
factor in the sp:!rg rise 81 stocks. This
Is very much 70 he doubted. Wall
street has no. been blind 20 events IN
the war. 7. Is more or less persuaded
that this year will see the end Of tho
conflict. but II 20 ans degree quoted
values have been d~lscounting settlement
OF tho war the process has not been
based on irrational notions as 70 the
likelihood Of an abrupt termination o.
the conflict through diplomatic c%oTtriv.
arCe
The point has been made that there
Is a contradiction between the supp"s'-
tion that peace prospects have stimu-
lated stock market Improvement and the
arguments for Improvement derived
from the war business which the Gun
try is doing. The settlement Of the war
would be a bullish factor which would
be superior To- all other factors, and
there IS 10 merit IN tho contention
OF a contradiction, but IN. real reason
why Wall street has been expressing
its.,' IN hopeful terms Of higher prices
on increased stock market dealings "a
not because Il thinks the end OF the
war = IN sight II - because OF me evi-
dence that during the war tho economic
position Of this country - stronger than
that OF any other nation and because
after tho war Il Will be still stronger.