The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-14

anu tOtrlloI lsibIt tuTOuLlbuN Nv Cililtttt
and there Is nothing TO Indicate that trade
and industry nave expanded excessive, :
On the contrary 80 much money is being
made In business lines that the worNiug
capital OF the business organization is
probably In larger proportion to hor-
rowed capital and current liabilities than
4, ever was In the past.
Market Helps TO Sustain values.
II there is a deficiency OF working car-
!tal anywhere IL would seem TO he ~
Wal! street. where the amount OF IN
vestment I'm the business conducted tl
brokerage houses has not increased a.
late years IN the proportions required hN
the immense lengthening OF the list Of
securities dealt in. the magnitude Of DoT-
porate capital at market valuations ana
the increase Of public buying rowe
seeking an outlet through the medium
Of securities purchased on brokerage re-
coun. and carried through the med um
OF brokers' ,oans. II there IL such a dc
fc!ency OF Wall Street working capita
II Ia important, for brokerage facilitlo'
have n useful relation 20 the process 10y
which securit!es. especially stocks. pass
through speculative activities into tn
investment area and find ultimate lodr
men, IN the hands OF Investment huye'.
Adequate brokerage equipment oondu "
TO the establishment and MAINTENANCE -.
an active and free market and the mar
ketabliity OF securities is IA suhsiau',i
element in their investment value.
As the stock market stand II .s in
A state of strength because of the ch, Ks
on speculative recklessness which are
imposed by borrowing terms. There -
no indication that a roper quoted VALUE
reflection OF enhanced actual value has
been seriously .npcded by my made
uuacy OF brokerage facilities. There are
signs that the development Of spccula-
ton has been on the whole rather health
lily retarded than the contrary, so that
the speculative position has been to a
large degree converted into a semi
investment position. Wall Street nay
connote an extensive distribution Of
stocks at present. but accounts are well
fortified by funds representing the equi-
table interest In commitment and sup
ported by an astonishing increment ~
corporate profits. which not only safe
guards current dividends but promises
larger dividends later in the year.
same a. in General business.
There is no doubt a great mass Of Sc
curities to be handled and accommo-
dated in various ways. Just as there IL
a great volume OF materials and goods
to be handled and moved by productive
industry and d~istributive trade. but the
situation in the securities market is the
same as In general business. A great
deal OF money Is being made by in
diyidua!s, interests, institutions and or
PLANTATIONS which IL being devoted 20
the acquisition Of securities and the pui-
chase OF goods. A great deal Of profit
70 accruing for the payment OF preset
and Increased dividends and for dis
bursement in wages TO labor AMI OK
peudlture FOR materials entering into sus-
tained production for the purpose Of
meeting expanding needs.
Env!ron!ng all money making activi-
ties. the barking situation is character
ICED by an enormous capacity for supply
ing credit 10 accommodate borrowers On
collateral security or commercial paper.
| What are called bu!lish periods. either
In stocks or business. that Is. periods OF
expanding volumes and values. do not
terminate in any such easy money mar
| kets as the country still enjoys, despite
| the resort which has already been had
TO credit facilities.
Impulses for renewsd progress In the
expansion OF values in Wall Street must
he derived from the incentive furnished
by the evidence Of money making art!v-
tiles in the country as u whole. There
is no token Of any change in the forces
working to Increase business profits and
enlarge popular buying power. no-
| nestle trade and industry are moving
forward with a momentum which will
lie hard TO stop, although there may be
a temporary slowing down on occasion.
! Tho foreign trade stimulus is not only
unchecked, but a continued recourse e.
our markets by foreign customers is
assured by the experience and confidence
which our finance has gained IN supply
ing capital and extending credit to for
| elgn borrowers. But II could he wished
on this score that a national govern
! mental policy which would safeguard
and so encourage foreign financial and
commercial enterprise were moro clearly
ia the way of definition.