The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-04

We might have emerged from 1914 in
much worse shape than We are to-day
TO 20 ahead. Winter on the whole IL
likely to be hard to get through but all
the aspects OF commerce and finance
warrant the inference that an improving
business trend will be discernhle before
spring. when we will probably be able to
see unmistakable Incentives for the
growth OF optimistic sentiment and the
expansion OF optimistic endeavor. The
money and security markets are in
position TO undertake the rohnancing and
now financing OF corporate requirements.
with the provision Of funds for corpO-
rate uses projects will be launched for
their expenditure and the impetus already
afforded to general business betterment
by the swelling export trade which the
country is doing IS likely to be acceler-
ated by the promotion OF enterprise which
always has its origin in financial &C
tvities
The United States Is not involved in
the war, and the determination OF pub
lie opinion IL that II shall not he. There
Ia a large domain OF neutrality which
looks 10 this country for leadership and
we have the material resources to set
the business Of civilization gong again
in every quarter More than that we
have the resources OF men. The fashion
I'm which the war crisis has been met by
American finance In % cooperation with
the Government, WNtItlu an ulIl FFeIlfeN
OF domestic politics were laid aside, has
been OF most encouraging omru.
II holds out assurance that other dlff-
Cultics. whether related TO the war or not,
will he solved by patriotic resolution ana
Intelligence We have certain persistent
troubles which have AM cted the business
mind and are attributable TO domestic
Do'itcs perniciousv divorced from the
solid realities OF the nature OF business
and its needs hut there rs no adverse fac
tor comparable with the factor Of war, IN
tho task Of couutcrac'ng which so much
progress has been made by trade, industry
and finance.
The situation with which we have To
reckon yields much on analysis 10 appeal
20 the spirit OF American enterprise
Nothug is more impressive az a COM
meutary on tho recent past than the sub
s!dence and disappearance Of panic and
the signs of returning confidence or most
consequence is the astonishing plethora Of
loauahe funds In al the important money
markets OF the world, Five months after
the start of The war finds most OF tho
monetary forecasts COMPOUNDED by events
Abroad resort has been had to eNpcd-
ents which range all the way from the
ON ssion OF incOuvertihle paper currency
10 the novelty OF the British hypo'hcca-
ton OF the entire credit uf the nation 20
support the structure OF British business
tteIf WITHOUT dlNluNe ana IA INC natural
course OF affairs a transformation OF our
la king and currency system previously
provided for has been started during the
war. On both sides of the Atlantic the
eject has been the same and the banking
world is endowed with an immense ability
10 extend credit.
Doubts are entertained about the ulti-
mate result Of many OF the devices which
have been employed to assist the money
market to absorb the shock and stand
q strain OF the war, but, as has already
been pointed out, good deal OF financial
prophecy with respect to tho war has
gone WRONG, whore IT was founded on
sng accepted premises Tho necessity Of
the most desperate emergency with which
the economic world has bean confronrso
IL likely to prove the mother Of !n0~r ''on
adequate to coping with post-emergency
consequences
II would seem indeed that the money
market situation reduces enormously the
ultimate financial menace 30 much in
voked in support OF the argument against
the outbreak Of such a war. By skilfu,
use OF the huge potentlalIty OF credit Of
bank lending power, which now exists,
such use as can be made by the per-
fectrd banking processes OF tho mode' II
ere dit system economic exhaustion
through the wars waste OF capital may
be lesscned and trade and Industrial en-
terprise may he fostercd and kept going
until fresh capital supplies are recruited
to take over their proper work from the
credit organization.
Encouraging Features OF the Past
Year.
In survey OF the forward bearing
record or the past year there are dis
closed many ordinary things OF moment
which have constructive significance for
volumes and values Radical politics
| mas rerived something more than a
! ch'ck The November election returns
showed plainly that reaction OF public
opinion had set in, which was hostile 10
the projects OF so-called progresslves OF
every party whose ticket for ONCE had
| consisted OF assaults on business. The