The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-10

until the middle or last year constitutes
a record OF increasing contraction and
depression. When tho European war
broke ont II added the finishing touches
20 a process which was eliminating ele-
mcnts OF weakness from the financial
and business structure. The way In
which the shock and strain OF the last
FIVE months OF 1914 were endured testi-
fies to- the fundamental stability OF our
banking and business community. Once
the rebound from the terrific blow OF the
European war set IN tho country began
to make steady and Irresistible gains In
strength In every direction. All the
world has had to come here not only for
war supplies but for the supplies OF
peace. We have become the worlds
market not only for goods and commodi-
ties but FOR credit. and he II noted that
from this reckoning Germany and Aus
tria are excepted. None OF our progress
in financial and business recovery has
been dependent on dealings with the
beliigerent nations Of central Europe,
from which We have been practically
cut OF by the war.
We have attained an unprecedented
international financial ascendency. II
has given us control of the foreign ex-
changes and established for US a lien
on the gold holdings OF al nations. The
situation is vastly different from that
which obtained last August or even
later. To all intents We are out OF debt
- the rest Of the world. which IL get
ting deeper into debt 20 us Foreign
investors in our stocks and bonds Will
not return them TO US as fast as We can
receive them and We are no longer
bothered by the problem Of making pay
ment for what We owe abroad. The
shoe is on the other foot now, and II
anything in international finance hothcrs
us II is the question Of how we VIII be
paid ultimately by our foreign debtors.
The foreign exchange situation but
tresses a domestic money market OF
record breaking ease. Thanks TO 4
colossal liquidation OF securities and
Coods and 10 huge discharge OF domes-
I tic obligations. the money market has
almos, unlimited capacity for absorb
ing shock and extending credit The
banking position in regard to all the
items 81 lending power is one OF phe-
nomenal comfort. and he familiar n.y.
cauization OF our banking power IL
backed up by the new departur. in
banking reformation which the Federal
reserve banking system connotes. the
1 ability OF which to finance trade and in
dus,rv has not yet been invoked
Furthermore. there are to he recK-
oned with all the factor and influences
/ originating with the unparalleled slim
/ illus TO domestic enterprise which for
eign trade Is furnishing, that have
been operating for a recovery OF bust
ness volume. and values These factors
and influences have been reflected this
spring in remarkable rise In the
stock market, and although that rise
has been 10 n great degree undOne as a
result OF the events OF the last few
days i remains Just as true a porten,
Of the economic trend In the tn!;ed
States az II was before German SUD
marine blew up the Lusitania and
stunned humanity with the awful hor-
ror OF tho tragedy. which showed what
a danger to civilization the desperate
madness OF German milnsrism had
become
An Investment Opportunity.
This week will pnovid. further test,
Of our financial and business ed!hce
and the stock market will be deservedly
an object OF close and widespread at
tent'on. Everything which has bear
ing on values communicates itself in.
stantly 10 the Stock Exchange and the
Wall Street share list is at all times a
measure of the countrys economic stu
alton, the gauge OF its prospects and a
fairly trustworthy index OF public sentl'
ment. especially when matters OF grea
moment are uppermost IN the publ,
mind.
Whatever immediate uncertaintie,
there may be in the settlement OF the
momentus issues that Germany has nov
raised for US, whatever turn events and
national policy may take. IL Is not a
all unlikely that there will be re.
. newal OF weakness In quoted values
: But unless validity no longer alta he'
TO the conclusions formed by our mos
competent men OF affairs, the stool
market will right itself under any storu
which strikes II.
n there IL recurrent weakness II
stocks. advantage should he taken OF 1
by every citizen possessed OF capita
. or good credit, to make or Increase M
|. commitments In the corporate equitie
which represent the prospects Of Ameri
can enterprise. Nothing has occurre,
so far which has impaired in the sl ght
est the forces which have been WORK
ing to bring about general business he.
torment. Nor Is anything likely 4
occur, even such a war as that int,
which the country may he conipclle,
by the dictates OF its highest interest
which II likely TO alter tho constructive
operation OF these benef'cent forces
Indeed, great deal Of intelligent Wa
Street opinion can he cited FOR tho state
ment that there Ia more reason for ap
prehension that constructive factors vii
lose much effectiveness II public oplu
= ion. through any defect OF coward &C
should fail 10 sanction a policy whicl
the country ought to follow II II Is T.
do its share In unfolding the liberte
, hard won by mankind through man
centuries Of strife.
According to the turn ~ events som
readJustments OF finance and bushes
may be required. hut the perspective O