The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-20
FINANCIAL REVIEW
OF THE PAST WEEK
Constructive Tendencies Re.
strained by Foreign Tn
certainties.
POSITION HERE STRONG

December traditions Wall Street has
20 have what is called al
unsatisfactory stock market. The de-
Significance. and this is the cage to-day.
when the share list persists In its fall
ure of recent weeks To cxpress the ccn-
developments which are quite
AS p reistently characterizinR trade ana
industry and the investment market.
There has been no s'GCkeniDR of the
movement OF general business. which has
come to resemble "a boom. and tho money
market has been prJpitious for an active
reflection OF the optimistic prospects for
values hut there has been no resump-
lion OF the forward swing OF the stock
market, because various dubious contin-
aencies Of foreign affairs have been Il
potent factor OF Stock Exchange re
s,raint. the chief cause OF caution being
provided by the state of uncertainty
into which our relations to the Euro
pean Central Powers have been thrown
by the fresh strain which the sinking
Of the steamship .tncona precip,tated.
Ordinarily the so-called unsatisfac-
totiness of the December stock nurket
r. not hard TO explain. II is "A month
of ~ ening up Of accounts. AMI II the
year has on the whole been "a profitable
one for business. there Is APT to he a
certain congestion of commitments
throughout he share list which makes
for iriegularity, -'en II the outlook for
the new year il bright. Usually the
market represents more or less Of a
contest between constructive influences
and some seasonable matters operating
for conservatism these matters hcing
custoinarily the political considerations
connected with the opening ot the rcEu-
lar Congressional session end tho .tfec;
PRODUCED 10y the tightening Of money in
cideutal 10 the marketing OF The crops
and tho year end requirements of gem
cral business.
Al the present time IL IL probably FAIR
To say that the domestic political pos
poet ~ more hopefully regarded than
the contrary for The political disposition
now manifested a; Washington Is emit
nentiy practical. The keynote has been
struck in the administrations pro-
gramnie 70 pre- pare the country for the
preservation Of lts interests in Il world
where peace Is still something to he
fought for. Politics could yie,d no NOR.
convincing evidence of practical purpose
.han by the attention which is being
paid to the question of preparedness
As for money conditions they are to-
thN W w tpD'll'u dlil'il NV u
tive influences and not among the fac
tors Of restraint.
After the great business and financial
recover III thu year. and after the active
speculative period through which wall
Street has passed. the stock market po-
sit,on In one IN which an extensive long
account has been built up. This po-
s'tion. however. IL strongly founded in
the profitable expansion OF business eu-
terprise and buttressed ny "A banking
situation OF enormous strength Proof
ui the underlying face, of the iiuan-
cial markets Is furnished in the great
aosorptive capacity displayed ny the In
vestment demand. hut the encourage
ments and inducements which offer FOR
"A rencwal Of speculative enterprise have
! had 10 contend lately against the pos
ture of our foreign relations. This has
been an efficient substitute for he or
dinarE tightening OF money and other
seasonal influences "a ~ factor Of re-
/ straint Oh aggressive action. \ rup-
ture o. diplomatic relations with Aus
tria, involving perhaps q furthor breach
and including OF course a possibility ot
more adverse consequences. could not
fail TO inspire n cautious attitude among
financial interests. But it should he OBJ
served that the outcome OF The rev Dip
lomatic controversy mas been awaited
with "A good deal Of equanim'ty because
of the confidence that has been inspired
In our economic adequacy TO meet any
event Of the European war.
since the destruction of the Ancona
AN increase of strain on our complete
official neutrality has been manifest.
Accordingly. II Is "A reasonable Inference
that Xix. the opening OF the Congress
sional session and the recurrence. Of
seasonal phenomena, the fresh crisis in
our international relations has been one
Of tn. things which the stock market
has been discounting by its superficialiy
unsatisfactory response to all the good
news Of the last few weeks. showing how
real values have been enhanced. An
other matter which the stock market
had similarly to discoun was the out
come OF the Anglo-French loan syndi.
cate operation. and Judging from the
aspects Of the past week any disappoint.
ment felt over the result OF this trans
action had been fully discounted.
Nor did the report Of the syndicate
deserve to be regarded as disappointing
Almost two-thirds az the loan was dis.
posed Of In the two months Of the syndi.
cate period and ever though part of IN.
amount so placed was hardly lodged per
manen,ly the experiment denoted by tn,
engagement to lend $500. 000 900 Z,
Great Britain and France on their mer,
notes of hand has already been IA goo,
deal Of a success. II was "A great de,
purture for American fnanc to under
take. but the venture has been JUSTIFIED
by the open market dealings since thu
dissolution OF the syndicate la which |
/ has been evinced that NJ a moderate con
cession from syndicate prices the Anglo
French loan Is making the appeal tina
IT should AS nm investment of extraor
binary attractiy.ness with all due allow
ancc for the war risk. Incidentally tn.
level at which these bonds are fndini
a free market supplies a s~ignincan
token Of inancia opinion about the con
dition in which the belligerents are fac
ing u prolongation OF the war.
An even more striking indication |
afforded by the foreign exchanges. Ster
ling exchange has recovered about hal
it's extreme discount here and Is display
ing much stability on the rally. Will
German exchange has In the last fey
days gone TO new low levels IN the Dutcl
market as well as In our own. It's eur
rent discount, ranging from about 10 pc
cent. hsre to upward of 20 per cent
in Holland as compa red with the rela
lively moderate discount on sterling
I a measure OF the progressive econoni
weakening Of tho Central Powers. what
ever their military status, On this sub
ject II might be added that notice wa
attracted anew last week to the nnnCia
strength of the Allies by the weekly r,
turn Of tn. Bank of France with II
exhibit of more thar n tillion dollars |
gold holdings, the largest amount eve
gathered in any central financial reset