The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-31
FINANCIAL REVIEW
OF The PAST WEEK
Why the Stock Market Has
Been So Firm in the Recent
Uncertainty.
SOLID BASIS FOR VALUES

Italy's entrance into the European
war as one OF the allies against Ger
many and Austria o. a few weeks
ago have dominated the banking and
business reckonings OF the moment. The
various considerations to which II would
have given rise would have been trans
lated into terms OF value and presu-
mably reflected through the Wall street
stock market. Its addition to the cost
and waste OF war, the further derange-
ment OF commercial and financial com
munications would have all been esl-
mated and weighed in the balance with
conclusions as 20 the effect of 1taly's
belligerency on the duration and issue
OF the war. Yet while Italy's engage
ment in the conflict was a great event
last week Wall street was unable TO de-
vote Itself to all the calculations appfo-
pirate to 1t.
Al the outset OF the week a tentative
inclination was manifested to argue that
Italy|s course was likely to lead a preak
In the ranks Of the European neutral
| nations In order to combat the menace
| OF European conquest onered ny Ger,
many's formidable military power ana
that the event therefore made the prpp-
| lem of our relations with Germany less
| serious, II was quickly demonstrated
| that such a construction did not receive
| anv wide Endorsement, ara throughout
the week nothing served much to dis
tract attention from the matters OF most
| direct and immediate concern 10 our
| selves. the issue of the washington
Berlin negotiations.
Because In the last few days
| AFFAIRS were clouded by protraoted un.
certainty in this regard II can be said
that the reasons for sturdy confidence IN
| the future Of American alu asserted
themselves still more emphatically. An
atmosphere OF doubt. especially douo'
| about so grave a matter as the country >
ability 10 maintain entire neutrality IN
the stupendous wal abroad. could hardiy
be M thing but unfavorapie 10 quoteu
values. Yet the stock market IN the
last few days summed up the reasons
for hna ncial and business confidence by
a very striking display OF underlyhs
hrmness with even some fugitlNe eN-
hibition of superficial strength incsc
features did not constitute assurance
against at least an interval or weakness
should circumstances conpei an 'Hip,,,
ment of the country's neutral t~rlehut'-
ness toward all the belligerents' put lle
| WAN III WHICH NHf -
the test. to which II was suoJecteu Nas
~ encouraging omen for the ultimate
course of prices. .o,id
1rha, fortitude must have some SOHO
ground beneath II was eNlnceu "! ,.e
unexcited response made TO the miu-
week news that the American steamship
Nebraskan had either been lorPeuoeu
or had hit a mine on the irish coae'
Coming while there was so much ten
IT, - .,ar,atptv ahDnt our relations
With Germany II was altogether graz
wing that wall street. through when
tho country promptly expresses its sen
,iment and opinion in times OF 'rIs's
-efused TO find in the episode any occa'
sion for fresh Apprehension ana ai'ril
obviously the benefit OF the doubt as
tc what had happened to the NeprasNdi
was given to Germany, and wan o'rte'
prompt decided that In n case th'
herman answer to the note sent by
Washington following the sinking OF th'
Lusitania was OF paramount Importance
This manner Of suspending judgment
together with the attitude OF hope'u
expectancy held toward the German
note. was evidence of "A public staolllH
which could not be ASSOCIATED IRON
the proofs afforded in the Trying 'inle'
Of the last nine months that the 'oui'
try's political and economic position II
Z III Isu tN't ""H
strength no matter what happens.
Indeed the tokens OF strength fur
nished in the last few days were I'M
more impressive because intelligen'
Judgment refused TO countenance over
~sanguine notions about the outcome o
the international situation and did no
subscribe to the belief that the coun
tryis relation OF formal neutrality to tn
war was immune from change ny TN
%compulsion of events. The general eN
pectation Of a conciliatory reply iron
Berlin was accompanied by persuasion
that the answer would he characterize
by the shadow OF Cancellation and tn
substance of failure to satisfy Wash
lngton's demands.
II was recognized that the note whicI
Washington mad submitted made larg
claims, and il was not apparent ina
there was any likelihood OF Germany
abandonment of its submarine warfar
3 or any modification OF II so as TO elm
/, mate the possibility of strainirg neu
! ,rality to the breaking point. Nor. !
, the most influential financial quarters
was il deemed wise to overlook IN
: propaganda which has been going foi
/ ward in Germany to develop IA publ
attitude OF hatred OF the United state
! because Of our expanding Industry !
. war munitions TO which only the allie
against Germany have access.