The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-14
FINANCIAL REVIEW
OF The PAST WEEK
New Note to Germany and
Bryan's Exploits Test Values
and Confidence.
PROVE THEIR STRENGTH

ny tcSt VI ptsitloHs "hiNh
was all the more effective and impressive
because II included elements OF sensa-
tional surprise, It was demonstrated last
week through the Wall Street stock mar
ket how great Ia the present strength
Of the business and banking situation.
II was proved again that the trend OF
values Is upward. not downward, and
that the country has acquired confidence
in the financial and commercial out
look. which enables II to stand with
fortitude the shock and strain of events
that delay Improvement.
In his spectacular desertion of the
Administration at a critical stage OF
the negotiations with Germany and by
his Immediate output OF economic nom
sense and ethical twaddle to explain
his course. William J. Bryan, who has
In the two decades OF his political as
tendency done as much harm as any
man living In the country's material
interests. subjected financial values and
business confidence to a severe ordeal.
His announced determination to in
augurate a propaganda OF dlsaffection
against the national policy. in committing
the country to which he had already
had a large part. projected a domestic
complication into the critical j%uncture
of our International relations.
Quite aside from that the time and
manner Of Bryan's proclamation OF re-
volt because he could not have his own
way In the major concerns Of the Gov
eminent. a. for twenty years he had
insisted o n having his own way In the
political party which no had dominated.
threatened to prejudice the success Of
President Wilson's policy in procuring
a peaceful outcome Of the controversy
with Germany precipitated by the blow
ing up Of the Lusitsnie. Also the hints
which Bryan threw out in advance OF
the publication Of the new note to Ger
many as to its nature and import were
more or less conducive to alarm. Last.
there remained tho note itself. which
the American people first read on Friday
morning.
Taking the Wall Street stock market
as a fairly trustworthy gauge OF gen.
eral public sentiment and thought, II Is
worth observing that Bryan's peculiar
conduct caused a weakening OF prices
in Wednesdays session On a moderate
amount OF uneasy speculative liQuida-
ton and bearish selling. After that,
and even before publication of the note.
there was q prompt process OF recovery.
which was succeeded by an exhibition
Of strength emphasized In Fridays ses-
sion after the note to Germany had
been considered by financial and BUSH
ness interests. 1t seemed to be clearly
manifested that in the Judgment OF
practical men Bryan's peculiar behavior
would not o or in the future have a
detrimental bearing on values and that
the policy which the President was fol-
lowing in his dealings with Germany
was laid as much along the lines of
pacific purpose as the public expected.
Financial consensus on the Lansing
note vas that II maintained with firm
ness the right n duty OF our Govern
ment under the circumstances which
Germany's method OF warfare has cre-
ated for us and was withal friendly
enough to evoke a satisfactory re-
Spouse from the Imperial Govern
ment unless Germany should be bent
on drawing the United States into the
war. A nation seeking to make a
quarrel can usually have Its way, but
Wall Street does not believe this is Ger
many's attitude toward the United
States.
Nothing. to be sure. has been settled
as YET III inc HldtttT vi our TtltllollS
with Germany. Bryan has added "A
promise OF domestic unse,tlement In his
open appeal TO vindicate him against
the President. but In regard TO all this,
the occurrences Of last week furnish
fresh reasons for optimistic belief that
the outlook for recovery and expansion
of volumes and values will be further re-
allied. New proof has been supplied Of
the great s%oundness of fundamental
- aaI - .hA . az cha
structure Of business betterment which
has already begun to rise upon them,
Further emphasis has been given to the
argument, derived from a long train of
events this year. hat the worst which
may happen in the field OF international
relations cannot impair and can only
temporarily retard the operation OF con-
structive factors and that. should the
worst come to the worst, any interval
OF readjustment will he followed by the
accelerated operation OF these factors.
Speaking the language OF Wall Street,
1t has been indicated again that we are
In a bull market because the country is
in "A period when "A variety of eNtraor-
dinarily important influences are COM
bining to stimulate a forward movement
in trade and industry which will de-
velop enterprise on an unprecedented
scale. As things stand to-day the be-
AAiiiib VI a vas VI ill'll'N
have been made in this country TO which
values are tending TO make a more and
more uncomfortable response. They a
been held In check by international un-
certainties and they are bound to be
characterized by superficial ~irregularity
from time to time. but the conviction is
growing that even II international uncer-
talnty should be ultimately resolved un-
favorably. even II the country is coerced
by hostility to II abroad to abandon its
neutrality. the consequences for our
selves. on account of the nature OF the
European war. would be chiefly an aug
mented Industrial and trade activity.
Wall streets Line Of Reasoning.
Unquestionably the stock market on
Friday. when numerous issues sold at
higher prices than they had reached
previously this year. expressed in some
degree merely relief over the nature OF
the Lansing note to Germany and the
sequel which Its friendly tone invited.
Instantly II was seen that Bryan's po-
tentialities for domestic disturbance and
weakening OF the Government through
popular dissension had been enormously
minimized by the careful elimination OF
severity from the note, without modify
ing justihable hrmness and by keeping
from II anything resembling an ulti-
matum. There was. however. more than
mere relief on this score In the rebound
Of quoted values throughout the share
list.
This rebound wal In itself indicative
OF the way In which stocks tend to
ac' when freed from restraints and