The sun., 1916-01-10

pronounced before tine war has been q
reminder that our politics can accentuate
the troublous nature OF the times These
and other matters are being taken into
consideration by Wall Street In its task
or balancing the present strong fac
tors OF enhanced value with the con-
Jectural influences in the more remote
prospect; but as concrete proposi-
tion the January stock market 30 far
has represented chiefly cont, ut be-
tween the technical position Of the list
ana the pressure put upon IL by cOntinu-
Ing European liquidation.
Ever since the British Government
promulgated Its scheme to mobilize Brit
ish investments here In order to aug
ment the rational buying power for use
In the purchase Of our goods and COM
modities st erling exchange has been re-
covering both stability and strength
Last week bills on London rose with
peculiar sharpness. which. In view OF
the magnitude of the share OF our export
trade for which British finance must
find the means OF payment. could be ex-
planned only as the measure OF very
heavy. British selling of our securities.
Nor is there any doubt that the effect
OF the British plan to mobilize these Sc
curities has been to force them abruptly
on our buyers. The result Of course
has becn to cause a general disturbance
OF the Wall street market.
Moreover. Great Britain has not been
the only source OF Increased supply Of
securities. While sterling exchange has
recovered within striking distance Of
normal parity German exchange has sold
down to a new low level OF extreme
decline. There 's some justification for
interpreting the weakness OF marks as
a gauge OF the economic strain in Ger
and tho danraci n nf n
paper currency. but the fall in marks
has raised the premium on the sale of
American securities by Germany and
Austria, and more and more of our
bonds and stocks have been returned to
us by Teutonic investors.
That the technical position Of the
share list will be strengthened In time
Is implicit In tho condition OF the money
market and In the forces which are oper-
ating for the further Improvement OF
Intrinsic values. That the Inconvenience
which the liquidation Of our securities
by foreign holders occasions Ia not a
permanent embarrassment goes without
saying. All the experience of 1915 In
the absorption of our securities from
abroad testifes to the steady accumulz-
tion OF adequate resources to finance
this return. II takes place to our ad-
vantage, because II provides the means
ances and thus fosters the maintenance
Of commercial movement which has
been a valuable stimulus to every form
OF American enterprise. In the outcome
II will operate to strengthen our creditor
relation to the rest OF the world and
assist us In attaining preparedness for
conditions after the war.
These conditions have already begun
to loom up as problem to be kept con-
I'm, llx. sal, l..N .,,s
When the chairman Of the United States
Steel Corporation issued the other day
his interesting statement directing warn
ing notice TO the need OF preparing the
country for the economic situation whicl
will obtain when Europe makes peace
he advertised an influence which Is
likely to temper all business and finan
cial endeavor just now with conserva
tism. Judge Gary properly laid cmpha
sis on the prosperity which We have
achieved. but irrespective of the de
batable points which he made In refer
snce to the dew ilopments of the future
what he talked about was subject
which Increasingly tinges the thought %
business and financial leaders.
Wall street was hardly warranted IN
suppusing that the Gary statement wa,
any cause OF the uncertainty Of the stocl
marke; of the week. but when the banking
and business community Is thinking al
the ultimate future In such terms AZ h.
| employed 1t would not be surprising tt
observe the result OF IL In a moderate
or the immediate pace OF progress
| Whatever tends To keep the movement oi
volumes and values under the brakes ot
some prudent control this year will b'
altogether desirable. especially in til.
early part OF the year. when there /.
| need for taking new bearings.