Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-02-10
WAR CRISIS NEAR,
WALL STREET VIEW
Every One Looks for British
and Russian Drive to An
swer U-Boat Campaign
NO FEAR FOR THE u. S.
BY CHARLES r. BROWN

NEW YORK. Feb 10.---So many cross
currents have been developed In the Wall
street situation by the momentous events
Of the week that the net result is highly
delicate and nervous state of tension. Evi-
dences have been quite distinct of sen1i-
ment that some way out Of the maze would
deveop--that in fact. not othy would war
between the United States and Germany
he averted. but that the German declara-
ton Of frghtfulness would be in some way
manipulated as TO bring the end Of the
entire struggle into much closer view. This
optimistic trend. however. appeared TO re-
ceivc a very severe shock with the sinking
Of the Anchor Line steamship California
without warning on Wednesday.
There seems in she wall street district
almost unanimous agreement as to the cle-
mcnts Of the new technical position that
has by the new developments been created
In the market for securities War still il
considered n factor that Is calculated to
advance prices; peace TO depress them.
Hence, there has really been no change in
these respects
Heretofore peace has suggested the sud.
den stoppage Of the foreign demand for
American-made war materiits. It would
have the same general influence under the
present conditions War, with America as
an active bellgcrcHt, would mean not alone
continuance Of the foreign demand il
would, IN addition. mean the sudden out
burst Of an overwhelming home demand for
everything necessary to meet the new mill
itary and naval conditions II may he
taken for granted that Washington win do
nothing by halves under the urgency Of
early deliveries prices and quantities will
not receive serious consideration.
There would be a renewal of liquidation
on foreign account. Suggestive evidence
that this already has begun is contained in
the rapid rise in New York Exchange on
Berlin and Vienna. indicating clearly the
withdrawal of funds by interests that
seem to be approaching so closely to the
classification of enemy countries"
There has been liquidation for British ac-
count--supposedly Of British Treasury hold
ings Of securities that have recently been
employed as collateral with the banks for
demand loans to the Treasury. These loans
have been paid off from the proceeds of
the latest S250,000,000 British collateral
loan the collateral consisting largely of se-
curities foreign 10 this country thus the
American securities pledged for the demand
loans have become available for sale.
Another of the offsets TO the view that
American participation in the war would
mean an overwhelming buying movement
in wall street is contained In the obvious
fact that there will at the same time be a
tremendous expansion in the volume of Sc
curities available for investment There
already is talk of a $500 600 bond Issue
in addition to the various bond and note
issues contemplated in the new revenue bill
which passed the House Of Representatives
last week
Every one comedies that the remaining
DAYS of February are TO be prolific in
events in connection with the War of
Empires. It was. for instance. in February
of last year that the Nerdun drive was
inaugurated The time certainly is close at
hand when the long-eXpected movement
will begin which will test the qualifications
of the new British army with its concededly
magnificent equipment and also the huge
new Russian army The frightfulness of
the sea campaign will undoubtedly be an
swered by the strength of this drive. When
once started it will be virtually impossible
to check it until its fun strength has de-
veloped.
This is the argument that is convincing
financial interests in the Wall Street dis
triCt that the crisis in the war is at hand.
Germany would not have been willing to
close the struggle on anything but virtually
its own terms unless it had finally tried its
most effective weapon In the same way
it is certainly to be argued that neither
Britain nor Russia would be willing to take
up compromises until the power of their
new military strength had been fully demon
strated.
As to the conditions to be faced on this
side of the Atlantic when and If this coun-
try finally be involved, there does not ap-
pear to be any grave concern. We have a
lures on coast defense will run up into many
millions. We have n ready made munitions
industry which can turn out material for
tin Government without delay. Indeed, II
may hardly be considered unlikely that sup
plies of materials that already have been
contracted for by foreign buyers will be
requistioned.
As to the possibility Of internal uprisings
in this country when war shall have been
declared there may hardly be said to be
any vital fear in the Wall street district.
Wall street today is making a wonderful
display of bunting as a mark Of patriotism.
Any uprisiugs or bomb throwing will he
the work Of hot-hcaded Germans with no
regard for consequences. Meanwhile the
great mass of the quiet and ploddng Ger
man-AmeTican population is recognizing the
serious result that must accrue from up
risngs when war conditions become actually
present. overt acts would then be ella SSH
fed as treason and be punished accord
ingly.
UUIsII