The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-03
FINANCIAL REVIEW
OF THE PAST WEEK
Further Encouragement for a
Constructive View Of
Values.
WAR ORDERS A FACTOR

alton which Wall Street has been re-
iecting with so much sustained i'm
provement in the price level OF secur-
tiles and the volume Of dealings. Pos
sibly because additional factors have
not been projected into the reckoning
the stock market on the whole has been
halted. and this development has not
been unsatisfactory to reasonably con-
servative observers. Professional spec
ulators who grow restless unless There
is a distinct price movement have been
jumping to conclusions that all the
favorable influences to which quoted
values have been responding have ex-
haustei their force, and selling for both
accounts has been more a feature of the
trading than It was while ago.
AT the same time IL is not apparent
that speculative arguments OF reac-
tionary sort can do anything to alter
tho brighter financial and business
prospect which has been unfolding itself
this year. Processes OF readjustment
are bound TO be characterized by much
irregularity. not only In Wall Street but
in the whole field of enterprise where
real values are created. but the best In
formed judgment OF men OF affairs is
TO the effect that conditions encourage
constructive attitudes and commitments
both In securities and IN trade and In
dustry. Such matters OF marketwise
bearing as attracted attention In tho
past week did nothing TO shake this
view. and in some respects they
strengthened II.
II II should be found that the stock
market 10 sensitive to major occurrences
in the war abroad II will not BE- sur
prising. The uncertainties Of the CON-
hict will inevitably qualify financial
and business endeavor with a prudent
regard for contingencies. but unless
there Is a complete reversal Of prevail
ing expectation about the course and
outcome or the war Its occurrences will
PROBABLY not cause more than tenn
porary chills Of hopeful sentiment or
impose more than temporary restraints
on forward endeavor. As nearly as can
be ascertained. financial and business
calculations are not being made on the
length OF the war. and the post -bellum
situation Is now rather too remote for
more than academic authorization
AS Tor the war itself. IL is manifest
that big events are impending. for the
spring campaign Is under way and I'M
doubleday the military aspects OF mar
ketwise news will from time TO tim.
engage more financia, and business no.
tice than anything else. Still, IL has
TO be remembered that the war has al
ready proved itself TO he no factor Of
depression In this country. on the con-
trary, II has been making for CONNER
cial and financial recovery here and
should continue to provide expansive
impulses. There are other ways OF re-
garding the war than in terms OF i'm
mediate values Of trade and the money
market and there Is "a future OF war
consequences which will some day have
10 be considered Just now. however,
ordinary occupations have to take cog
nizance chiefly OF things as they are,
and the present effects which the war
IL producing are summed up for us in
the stimulus which is being given TO
American industry and American
values.
So far rs the foreign fnancia, posi-.
ton goes we seem 10 have emerged
pretty clear OF the obstacles represented
by the more loosely held quantities of
European investments in our securities.
From now on foreign selling OF our
stocks and bonds will be increasingly
reluctant and the progress of Amerl-
can finance in banking for the world
will be more rapid. II has also been
manifest enough to reflective minds for
some time past that while domestic fac
tors OF initiation are still dormant, finan-
cial conditions In Europe have already
begun to communicate innationary in
fluences TO our situation.
The outlook for our values In Eu-
ropes relation 10 them IS not TO be
read so much in the light OF the eco
nomic distress for which Europe is pre-
pairing as in the light of the abnormal
money market processes which Europe
has set at work TO enable II to sustain
the burden OF the war. II il imposs ble
for most OF the principal nations Of the
earth to make tremendous departures
from the customary methods OF finance
without causing worldwide effects on
the ordinary measures of values. The
steps TO which Europe has resorted in
the war are giving concern 10 the
thoughtful, who are conjuring up the
spectre of an eventual reputation II
debts. but there seems to be 10 reason
why these gloomy appre should
prise
War is bringing vast amount OF
business TO this country and will bring
more. II has generated trend toward
increasing domestic activities. and IL
Europe is heavily our debtor after the
war It Is not going to hurt us. In some
fashion the debtor nations viii find
means To keep their credit good with us,
and even now under the strain of war,
they are letting gold 60 to support their
credit here. In the first four months
Of the year the importations OF gold
aggregated almost 100000.