New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-09

that Of any other nation at any time.
Our Federal Reserve banking sys-
TEN has shown itself capable Of
handling problems of a size and
complexity that would have been
far beyond the capacity Of the sys-
tenn it supplanted.
at the end of the war the re
Mobilization of Europe will to a
great extent depend on us. Our
enormous capital, our newly created
merchant marine and our highly de-
veloped productive ability will be
in demand until Europe has restored
its own physical condition and pro-
ductive capacity. In the meantime
we are establishing ourselves COM
mercially in South America, the Far
East and elsewhere at an unprece-
denied rate, creating a new national
asset of great value
THE internal condition Of the
country is equally satisfactory.
Agriculture, mineral resources and
manufacturing, the prime sources of
our wealth, have never approached
their present output, nor have prices
ever been so high, both the intrinsic
and the market values being with
out precedent. 1t is true that the
size and frequency of the Liberty
loans are disturbing, but compare
lively little of the money has left
the country. The funds collected
through these loans are being
forced back into circulation as
rapidly as the government on the
one hand and our mines, farms and
factories on the other hand can eff
feet the process. Taxes will be
heavy, but to a large extent they
come from excess profits, and the
proceeds, like those derived from
the Liberty loans, will be forced
rapidly back into circulation.
Under these conditions why 20
securities 90 begging at the lowest
prices in years? From narrow
viewpoint the answer is: Because
they may go lower They may.
But they are lower now than con
ditions apparently warrant. From
broader viewpoint the answer is
found in the timidity of capital in
times of uncertainty. But the i'm
portant factors Of uncertainty are
being settled, slowly, perhaps, but
none the less positively. The AL
lies are learning the business of
war, and there is no doubt about
the final outcome, except as to the
length Of time required and the de-
gree Of decisiveness of Germany's
defeat.
eve have proved conclusively
the ability of our country to absorb
huge government loans, and as the
selling machinery is perfected and
as the funds raised by earlier loans
find their way into circulation sue
ceeding loans will be less difficult.
There are good grounds for expect
ing Congress to modify and clarity
the tax laws, which, except for
some uncertainties and inconsistent
cies, have been generally accepted.
The recent recommendation Of the
Interstate Commerce Commission as
to the railroads will, if carried out,
relieve them from their almost in
tolerable position.
1--WE are passing, l believe,
through a phase of a situation
which is moving toward more favor
able financial conditions. The
careful investor will not continue
much longer to bet against the
United States even in war time.
The Spectator may wait for lower
prices, but the conservative in
weston will make no mistake in tax
ing advantage of the greatest tinan-
cial bargains of a generation, now
presented in the form of well Sc
cured bonds and notes"