The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-19

almost to 50.ooo.ooo. was construed
ss evidence that financial conditions
we're operating as powerfully as ever to
Increase the strength OF the country's
monetary position.
Nor were factors OF safety lacking
In the further stock market advance.
The reactionary and oautionary admonl-
lions which the movement has evoked
applied the brakes OF prudence to reck-
less dispositions and induced plenty Of
profit taking sales. The profits which
have been gathered are far more likely
than not to be available for reemploy-
ment in the renewal OF commitments in
stocks and denote good deal OF by
Ing power under the market. The vSry
heavy selling for ali accounts. domestic
and foreign. which the market has taken
is urged as an argument for the neces-
sity OF digestive reaction, as well Il
may be. but II In no less true that soil
ing OF the sort must ma va provided saiu-
tary checks to the advancing movement
and prevented 1t from becoming a more
runaway demonstration than has been
seen.
Denouncing tho spring rise in stocks
this year as n public gamble accelerated
by professional manipulation does esue
provo anything. Although great
change In market aspects has taken
place with astonishing audiences. this
may only evince the power OF long
pent up forces which have suddenly
found an outlet. Compared also with
the past range of quotations for good
American values, representative av-
erages arc still not only far from
high: they arc low. II Ia fashionable
to condemn some OF the extreme gains
which have been made by saying that
the advancing stocks are raw indus
trials but tho highest prices reached
have In most cases been based on large
earnings or tho demonstration Of large
earning capacity.
An Experiment with Values.
There Is no question that u the sup.
port OF better general business Is In
the near future going TO he placed under
the price structure OF the stock mar
kot It is not very long since the whole
list " American shares was selling
much too low. Even the stocks of cor
porate cripples should not he excluded
from this category. for IN new con-
structive era they will assuredly be re-
stored 70 health. and tho financial doctors
everywhere have been busy lately in
efforts to bring about their ocnvales-
cence. To very largo degree, ac-
cord'ngiy. the gain which quoted values
have scored denotes merely . rebound
from gross differentiation.
A. for the erratio and eocenty4c CHAR
acter Of countless nuctuAtionA K must
be remembered that the dealings Of the
room traders do not In these days Of
heavy taxation form as large a proper
ton OF the aggregate dealings as for
merry. These men perform much the
same function IA the jobber In the Lon
don stock market but their part In sta
hilzing quotations has been lessened.
This does rot excuse the apparent ex-
plot OF capltallzng war business at
6 per cent ard adding II TO the market
price of given stock. hut what has 10
be reckoned with just row IL not so
much tho excuses and occasional ore
sidedness of stock market speculation
az tho general direction OF the move
mcnt.
Furthermore the foundation OF tho
market as a whole lies In the liuuidated
condition 10 which securities We're re-
duced last autumn, preceding and cor
responding 10 tho lquidated condition at
which tho country's business generally
arrived during the winter. For years
past there have been counter currents
of private eStraVagauce and private
economy. and the practice OF economy
pushed under compulson TO an extreme
IN recent months. must have put the
country IN shape 20 use accumulati ions
OF capital for rev enterprise. In this
situation therc comes a spreading appre-
citation OF the advantages which are en-
Jpycd by the United States. both in war
and IN peace. ard this appreciation as
usual seeks first expression through the
stock market In a bull movement which,
however Il may 20 tested 10y coming
events. has yet to he proved untust,tied.
There is no one who can gauge the
economic forces which have been rrcel
or generated since the middle OF last
year and no one who can tell how they
arc working or what will he their Ill
innate effect Speculative experiment
!s the most normal OF ali responses
which could he made to them and ey-
pe~ments In this direction Will de-
termine better than anything else their
trend and tendency. The experiment
which Is being conducted IN Wall street
has 10 contend with manifold obstacles
among others the handicaps OF domestic
politics or the fun recovery OF busl-
ness confidence. with the risks Of ac-
c!dent in foreign affairs and with the
d'hicnltes which the experiment itself
creates, but u Is well worth whu,
II Will enable uS 10 discover. as moth
ing else can, just where economically
the country stands. There ~ no reason
to wish = III. although a sour note has
bcea struck in much OF tho recent adj
verse comment upon Il. There IS no
doubt that Wall street is taking chances
with various Influences which are any
thing but constructive but the great
est OF these emanate from no Euro
pean war. which has discounted every
thing bad except Its own contingencies
II IS 10 be expectet that such stock
market experiment will he shaken and
tried more than once ir It martfes.s
endurance, hut II will take trial to show
what the real status OF the market is
and how tho experiment OF anticipating
return % prosperity is going.