The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-05

prise. The same may be said Of the
backwardness Of the agricultural season,
although there will be no disposition
to borrow crop troubles 40 early. par
ticularly when the soil In most areas
has been copiously saturated with moist
TIRE. Signs of any slowing own Of the
business movement can only be favor
ably interpreted as illustrating tenden-
cies toward the maintenance OF a state
Of intelligent preparedness.
Persistent Investment DenanA.
The stock market IL bound to reflect
q business situation which 10 expressed
In terms Of unprecedented profits. denot-
organizations and representing An aston
ishing diffusion Of enhanced buying
power. The essential solidity Of funda-
mental business and financial conditions
IL indicated by the unrelaxed persistence
Of such an investment demand As the
market has not known for years. An
investment market of this sort 10 an
invariable precursor Of a long period
Of enterprising e%ndeavor. whatever the
Interruptions Of the forward movement
may be. Such an investment market II
also a a Of the excellent status
OF the market for corporate equities In
liz 7 VI tUd VI btoSnos
except In special quarters. could GER
tainly not be imputed to the stock mar
ket, for the prosperity which exists
throughout the country II not at all dis
counted at the average level OF quoted
values. and despite the pressure TO
which the share list has been subjected
of late and although with a good deal
of irregularity. stocks have shown a
rising tendency. This a been attributed
with more or less Justice to operative
effort, but the Significance would seem
to be the proof Of the effort that there
Is an upward line Of least resistance.
The action Of railroad stocks Is slowly
responding to reopd dimensions of rail
way earnings. but these are the gauge
OF the greater earnings Of industrial and
trading corporations. Business prohtf
have very clearly placed strong sup
ports under tho stock market price
structure and the maintenance OF prof.
table business activity Ii likely In turn
to be supported mould the stock marke'
expand again into active strength. Sucl
an expansion would help TO absorb thu
foreign liquidation OF securities and IA
| cilitate the new financing for domestic
and foreign ccoun which Is requisite
II the country is going TO realize thu
| commercial opportunity vouchsafed b!
V1t European wal Nv 10 hpo''a
sequel.
Banking statistics have inspired tall
| Of a harder money market. and II woulC
be an excellent thing II firmer lendint
conditions should be brought to pass
Banking interests would then be abb,
TO assert more control over credit ex
pansion. and business progress could h
kept under financial brakes which would
safeguard The situation against tn
strain OF emergency. Yet hardly any
thing more than somewhat less cas-!
money than has prevailed is looked 70
later in the year. Higher lending rate
will be likely TO engage credit capaci
ties now dormant and meanwhile TIT
new movement Of British gold from
Canada to this country encourages con
structive views and effort In the securi
ties market. The total OF the new golt
importation so far IL already twice a.
large as the dimensions predicted 10
Il at the outset. The gold inflow shoul,
contribute to the arrangement OF new
loans for foreign borrowers who are. b!
the same token. buyers Of our good
and commodities. to new financing fol
domestic purposes and help to a gener
ally broader buying Of securities II cir
: cumstances are otherwise favorable. s,
far as concerns the factor Of foreigl
liquidation In the securities market 1
is TO be observed that along with tn,
gold imports limitations have beer "or
ing from abroad that London. like Paris
intends rather TO borrow or collatera
here than to seek to sell to us our ow,
or other neutral securities largely be
cause OF the reluctance OF British an,
French citizens to part outright wit
their foreign Investments. PARTICULAR
investments In the United States.