The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-12-29

New York, Dec. 23.-The speech Of
David Lloyd George in the British
House of Commons on Tuesday,
though not implying a direct rejection
of the German overtures for peace. left
much to be desired by the advocates
of an early peace. For this reason the
so-called war stocks held quite firmly,
Notwithstanding the progress of a
heavy selling movement which was
successfully engineered at the strate-
gic moment by the bear operators.
The opinion is held in conservative
circles that whatever decline has been
brought about in the stock market this
week was not entirely due to the in
fluences for war or peace. but to those
which have their origin in domestic
factors. 1t is we'll known, for ex-
ample, that the commercial banking
institutions in New York have been
anxious to clear up the misconceptions
that many spectators have enter
tanned with refernce to their paper
profits, and the only effective way in
which this can be done is to put the
brakes on speculation in general. This
has been accomplished quietly but
firmly, to the evident advantage of all
concerned.
Wall Street has become so accus-
toned to the extremes that it has
learned to regard violent fluctuations
and reactions in the security markets
as distinctive incidents unrelated to
the general business and financial
situation. 1t is rather unusual, for
example, that panic in the stock
market should exist simultaneously
with the announcement of extra ordi-
nary production, of almost mex
haustible sources of commercial
credit, of unprecedented liberality to
employees in the shape of royalties
and bonuses, of a general though
gradual adaptation of our commercial
activity to the productions of COM
modities of peace instead of war. Very
many people still cling to the absurd
idea that the industrial equipment of
the United States has been devoted al
most exclusively to the production of
munitions for the European nations
and that the slightest reference to the
termination of hostilities is synony-
nous with the complete paralysis of
these industrial plants. The almost
complete failure of the war brides"
to make good the Wanted promises of
their sponsors for big dividends and
many of them, is conclusive evidence
of the unstable character of large
proportion of the war business.
The peace" panics may therefore
be considered entirely apart from their
relation either to general business or
credit conditions, and, in fact, they
have been characterized as the most
senseless and illusionary upheavals
that the market has had to contend
with in many day. just as no bank
ing institution, not matter how sound
or how solvent, could pay at once all
of its deposits on demand so no specu-
lative market can make good its
paper" profits to every one at the
same time. Thus a speculative furry,
like a run on a bank, will defeat its
own object; and as far as can be
summed up the country has sustained
no losses, nor even been put to incon-
venience because of the fact that hun
dreds of millions of dollars of paper
profits have been wiped out.
Peace may mean the collapse of the
war brides which, by the way, are few
in number, but it will mean the usher
ing in of new era of commercial
activity and industrial progress not
only for America, but for the whole
world. AS previously pointed out in
this review, we, with the rest of the
"civilized" world, have adjusted ouI
economic position to war conditions
and will have to accommodate our
selves to peace conditions, but since
this readjustment has been seriously
going on for long time it is not
necessary that further adjustments
should jar our economic machinery
perceptibly. What has happened in
the stock market will happen many
times again in the next two years, ano
the effect thereof will be wholesome
rather than prejudicial to our best in
terests. There has been entirely too
much speculation and lcssening o
the speculative pace will be of grca
benefit to the country.
1t will be remembered that abou
nine months ago a prominent stec
manufacturer and an international
banker created a sensation when they
stated that the European nations hat
made themselves independent o
America insofar as munition supple!
were concerned and would thereafter
buy sparaingly from the United States
For the past eight or nine month
orders for munitions such as shells
guns, etc. have been conspicuous 10
their absence. When Europe starte'
to place munition orders in this coun