The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-15

lens OF neutrality still remain to vex
us Just as Mexico remains an irritant.
Financial strain Is telling more evil
IDENTIFY abroad. The Bank OF England
reflects II too OBVIOUSLY to permit doubt.
nor is any conviction produced by Ger
many's official advertising OF financial
strength that the economic effects OF the
war are falling to make themselves dis
tressinEly felt In Germany and Austria.
From the ~belligerent countries an In
creasing strain IL communicated to
others, and while Its adverse p%ortents
cannot DO ignored It Is on tho other
hand furnishing additional evidence OF
our own economic power and testlfying
to the opportunities which the war IL
creating for US. All the facts are set
forth In tho foreign exchange market
which quotes American dollars at a
world premium and In the banking nego-
~tiations which are being carried on for
the grant OF financial assistance TO a
lengthening list OF nations.
Gold tends 20 come here from every
where. The trickling flow OF II included
last week another moderate engagement
OF the metal for importation from Japan.
but the tendency Of gold to come to this
country is enough for our bankers. Thu
gold itself Is not needed 10 enable them
to extend loans abroad, for the proceeds
OF these loans are not taken in cash by
the borrowers but In American goods
and commodities. A Swiss Government
loan OF SIS. 900. 900 was added the other
day to the growing amount OF our for
eign credits. and others are under ar
arrangement.
More and more Of this international
financing will be done here, and all of
II Is insuring a continuation Of export
trade balance OF record size and an
Increasing AZ ancial ~ascendency. We can
n care Of the liquidation OF our Sc
curities ABROAD and the foreign maturity
Of our obligations assumed before we
began to mak the wartime discovery
that we were no longer dependent on
European capital. More han that, New
York 10 gaining through the foreign az
changes the capacity to act as a world
banking centre and q world money mar
ket when European peace IL restored.
Hope Of ProAt for Railroads.
Domestic business conditions are per-
sietently Unsatisfactory. The gain OF
less han 100. 900 tons In the forward or
ders OF the United States Steel Corpora
ton In February and the Increase last
month In the idle freight cars on Ameri-
can railways TO a total OF more than
400 1000 were among last weeks items
of information going TO show how slug
gishly business Is moving. Whatever sea-
sonal influences may make themselves
felt In trade and industry. Il is unaues-
tionable that business is very severely
depressed. II IL the heaviest drag
on values which Wall Street reflects.
although there are developments and
considerations which make for conf
dence In a material recovery In
the course OF the year. The Eu-
ropean war cannot remain for many
months In a state OF uncertainty as to
its outcome and duration and there Is
all tho bright promise OF the agricul-
tural season ahead OF US. The farm
year has mad In excellent beginning
with a huge acreage OF wheat which has
come trough the winter well and with
tho soil reported In good condition In
the principal farm areas.
Domestic political actions and their
consequence are still an impeachment 10
enterprise, but IN one important political
respect reflective business minds agree
that there il encouragement to a con-
structive view. This is the accumulat-
ing evidence OF a great change In pub
lc attitudes oward the railways and In
the treatment OF railway capital. The
latest In a momentous series OF declars-
tons OF public policy regarding the rail-
roads was the decision OF the Supreme
Court last Monday in the West Virginia
and North Dakota cases Involving both
passenger and freight rates. The effect
OF these decisions was to curtail Still
more tho power OF state regulation 10
harass the common carriers and to make
it still more clear that private capita!
devoted TO public service was entitled
to substantial compensation.
The railroads have long needed to be
placed more exclusively under the con-
trol OF Federal authority and freed from
State jurisdiction. They ave needed
also . declaration OF public policy which
' euhsuCcd the attractiveness OF invest
meut IN railroad securities. II begifs
tu took very much as though n new
charter of liberty was being issued to
railroad capital, and what this means IL
proved by the periods Of prosperous ac-
tiyity IN our past when a salient fea-
tu-e was railroad expansion. III vari-
GU ways I; is being made manifest that
public control OF the railroads is not
going 10 BE exercised 10 prevent them
from making money. n railroad owner
ship is once more going 10 hold out the
hope of profit funds will be forthcom-
ing for railroad extension and the In
crease of railroad facilities. and though
there is here denoted only a latent slim
ulus 10 general business It's dynamic pos
sihillties are 10 be reckoned with In any