New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-22
REVIEW OF THE
FINANCIAL WEEK
Stocks Halt and Become
Uncertain-Market for
Bonds Still Strong.
DOUBT OF NATURE
OF BUSINESS UPTURN
Profits from War Need Careful
Handling-LOng Term In
vestment Better.

hanullng-LOng leInl lH'
Vestment Better.
/ As securities halted last week and
became uncertain there was more dis
/ position to question the nature Of this
present commercial prosperity OF which
| the rise in securities had been fore
runner. Could 1t be a permanent up
turn in business, il was asked, which
had been stimulated by wars demands,
which existed while the worlds wealth
was being wasted in conflict and which
faced the years of readjustment that
must come with peace? Evidence from
every side that the tide of trade was at
the flood appeared to some merely the
/ beginning of imitation that would make
settlement more difficult when the war
was over.
An opportunity, one of the greatest
ever given to any nation, has been
placed in our hands by this world war,
and we may turn it to incalculable
t DenelL 10 ourselves anu " tht itoI VI
mankind. The truth would seem to
be that our continued progress rests
with ourselves. As we use to advan-
tage the good that comes to us from
Europe's misfortune. we will be in posi-
ton to resist the unsettlement that is
to be expected when il is the needs OF
world bent on repairing wars waste
we must supply. If We keep our bal
ance, are not led into extravaganza by
unusual profit and maintain at its best
the ordinary business of the nation,
we should be able to meet the years
after the war with what, compared with
the rest of the world, will seem like
continued prosperity.
Of the gold that is coming TO us from
other nations, tangible sign of our
strength, such part will later remain
with us as our legitimate needs re-
ouire. Used as basis for credits that
develop our resources and that repur-
chase from abroad evidence Of our debt
in our stocks and bonds. the gold will
be well employed. Concentrated through
our new banking system it may enable
us TO make the bill on New York take
it's place permanently beside the bill
on London in financing the trade of the
world. Used in reckless capitalization
of temporary profits 1t may easily be
called back when the trade from which
these profits arose has ceased.
Public Less in Stocks.
How wisely we use our fortune will
be evident later. The great conflict, il
would appear, has still long to run, and
we must carry on our affairs in &C
cordance with the abnormal needs and
conditions it has created. The securi-
ties market, suffering from a surfeit of
prosperity, will no doubt have adjusted
its affairs and indulge in new excess
before long. II may be hoped, how
ever, that the uncertain basis on which
war profits rest will not be quite for
gotten.
( For the present the great specula-
tive public seems to be keeping away
from the market. War stocks, having
J proved they could fall as easily as they
B rose, have lost their appeal. Reports
of improvement in the market for me-
/ tallic copper failed to furnish lasting
stimulus to security trading. Exports
| of copper are large, 10000 tons for the
week ended Thursday, against $500 and
$500 for the two weeks preceding. The
large selling agencies advanced their
price to 1874 cents pound. and reports
I
were current.
With improved methods Of produc-
ton, such high prices for the metal
/ should mean large profits for estab-
/ lished companies. There are, how
ever, no longer public statistics of stocks
of metal on hand and of production TO
/ show the condition in the copper mar
ket, and these reports of improvement
failed to carry complete conviction to
traders. Copper stocks early in the
week rose, in some cases to their high
est ever recorded, but they gave way
rather easily later as traders took
profits or sold short.
The war stocks proper. steel com.
panies, equipment concerns engaged
in ordnance work and so on were de-
cidedly unstable. Though in many in
stances it was shown they could be
advanced without much trouble by
those interested in their market
course, it became increasingly difficult
TO distribute stocks at high levels. In.
dustrials not directly interested in wal
contracts did better. The petroleum
issues came into some prominence as
prices for crude oil advanced.
Railroads Fairly Firm.
The railroad list gave fairly good
account of itself, prices improved slow
ly, but holding well as investment buy
ing was more than sufficient to alb
sorb such part of the stock returned
from the other side as reached the
market. Railroad earnings all ovel
the country grow more favorable. Com
modities are being moved in greater
volume to meet the suddenly expand
ing needs Of business, and this means
more traffic for the railroads From
this gain in gross receipts, some i'm
provement in rates and the more eff
cient and economical conduct of bust
ness forced on railroad executives in
recent months means large proper
tion saved for net.
November is passing without the Gus
tomary check TO security trading caused
by strlngency Of funds from crop NOV
/ ing demand. The interior has beer
able 70 finance the greater part of It's
own needs this season. Here call loans
were made at from l " 10 2 per cent
Time loans on collateral made last
week as low at 2ia per cent for sixty
/ DAYS and % for six months. Mercan
= tile paper of the bSst quality was taker
AT 2iz per cent, or less, for the short
or maturities.
This great abundance OF money Is
still principally available only for
short time accommodation. The supply
for long term investment continues
limited. New concerns that promise
opportunity Of unusual profit and re-
organizations and mergers o. existing
companies which are doing larger bust
ness because Of the war are drawing
on the supply of available capital. The
] ueeds NJ warfare with the urgent de