The sun., 1916-12-26
FINANCIAL NEWS
AND COMMENT
Intrinsic Values Uninjurcd
After Greatest Selling Wave
Since 1907.
WARNING IN THE SLUMP
Bankers, Differing on Peace
Prospects, Are Not Alarmed
by Trade Outlook.
WARNING IN THE SLUMP

STOCK market values have gone down,
but h intrinsic value Of American in
vcstment securities has not been injured.
Rcadjustment Of speculative accounts
has not accompanied any change IN the
position Of fundamental conditions, but
the movements In the speculative marts,
however. have brought to the front the
need for greater conservatism In all OPP
erations and the wisdom OF preparing
for the changed conditions that must de-
vclop In many lines following the close
Of the European war.
There Is no certainty that early peace
Is on tho cards Of foreign diplomacy.
but It is conceivable that the present
peace talk may end in something more
important than mere talk. and that the
entering wedge suggested by the i'm
perial German Government may take
the form Of actual negotiations. despite
the apparent attitude Of the Allies to
vote against q cessation Of hostilities
except upon terms that would mean
practical surrender for the Teutons.
Our bankers are not Of ono mind re-
garding the outlook for peace and they
are much confused by the backing and
filling Of the American Administration.
with Its enigmaticai announcements and
explanations OF its position In reference
to the International situation.
They are. however. of one mind re-
sarding the position Of none and busi-
ness In this country. They see no rea-
son for alarm over the outlook. while
securities prices in recent days. the lat
ter having corrected . most dangerous
condition In the stock market and paved
the way for a return Of common sense In
public operations in stocks. particularly
In the industriais, representing COM
panies either directly or indirectly idcn-
tined with the manufacture Of munitions
Of war.
The Wave 81 Selling.
The wave Of selling that moved into
Wall Street IN the week Just closed waa
the greatest recorded since the panicky
days Of 1907. The dealings were heavier
than at any time since the great North
ern Pacific panic. which was based upon
the corner in tho stock Of the Northern
Pacific Railroad. And one day they ex-
ceeded the 5000. 900 share mark. which
had been recorded only IN two preceding
occasions in the history OF the Stock
Exchange.
It was q selling movement that came
wholly from ov~evpeculation by the pub
lie in the autumn months, and although
IT had for it's immediate argument the
peace talk and the i'll advised outburst
Of Secretary Lansing in his effort to ex
plain and amplify the note OF President
Wilson to the warning nations 1t was
primarily based upon conditions in the
market itself.
'nsie 70 N'ue piVnt IN po,h'lhs our
- y An.IAe' pos.''oI
pI'or .o tno o'eaN III prices, except a.
p.esehtihs IL 49, wSIhine' n retrospect
ot INC great stump Win us attenoins
widespread losses Is not pleasant reading
ior thls Christnastide. but
ment may De found as one looks into the
fnture' for our business Is upon a sound
prosperous foundation. with all the
pillars OF strength that make for a long
period or constructive tendencies.
1t Is up to the American business man
ana the American banker to foster and
help the present situation. "a that with
after the war readjustments dangerous
conditions may not develop. that over
expansion in trade and overspeculation in
stocks m commodities may be elimi-
mated and that the effect Of present con-
| structive policies in our nations indus
| tries may not be lost.
I
Money and D~usiness.
,a 49,
ann"ees .nae maS 10 e.'u W ioIe'
nns uv~N~aIu nioVe'
,n.h' ~ s.ocN marley value arc iaekihg'
:. -" 10. So.s IT,. rresuppose 'nat an
for the immediate future. It should be
dsciin. IN mice. S;S M, ancon,n.n "'sM )
Ss,linr ON in m. nrod,,c,,v. ga s..n,n1
mower ~ Oh. country nor did ~ accon,,
nanv anv ad,,srsc cbaug. n shs ro.,,,o,
Of money or IN. General ipvestmept situ'
alton. E,rthcrmorc that d.ci,n. mo-. a..
sigma for the ac~cumuIat,on ~ s,ocr. hS
h ntial Interest. 1ncI,,din. iarrs
smount NJ actusl ,pycStmant h,v,ns
narticuIa rIv In Tho bioh rrad. rresor,nI
industriai. and I'm the rrst cIas. ra,iraad
securities'
~ IN. neac. ,rou.rc. ao.. mn. hor.
.,ut. r,rthor 49, S,s,nS
rim Countries in our ,narkei. nav n.
looked for. hut A. wou,d he we'll ~ tbs
snecuIator ana The inve.tor Sn,,d r.,
move from their minds the war factor as
The chief con.ideratjon In oncra,,on. a.
stocks for the time hs. coma whsn nron'
arations for neaca ana tbs ,,itin,st.
STRENGTHENING erect ~ p.aca unon M,
own industries and thosa NJ otber M.
tion, should occunv a s~trone.r no.,,ion
I'm market discus.ions
Peace NAV he a long wav oY hut thar.
are MANY rood and ,r0ent res.on, NH
a careful studv OF neace nroha hiIiti.S IN
THAR rela tion ~ trade ond 0non,. .ho,Il