The Washington times., 1917-02-18
WALL ST. UNNERVED
BY GERMAN CRISIS
Uncertainty Produces State of
Mind Which Would Welcome
Actual HostiIities.
BUSINESS BEING CRIPPLED
Virtual Blockade Due to U-Boat
Activities Deals Blow to
Trade in General.
BUSINESS BEING CRIPPLED

certainty in this situation has become
so nerve-rackIng to Wall Street that
financial investment and speculative in
terests alike would welcome actual
hostilities.
There Is much to be said for this atti-
tude. The country's business is slowly
becoming paralyzed through the virtual
blockade imposed by German subma-
rine activities. Congestion alike at sea
board terminals and railroad yards In
all the large cities of the East and the
Middle West already presents a grave
problem. The Government, while ad-
mitting the principle of arming Ameri-
can. merchantmen. has failed to take
protective action, and the result IL an
extremely embarrassing tie-up. particu-
larly at New York. The large railroad
placed embargoes on freight Of the most
important classes. including shipments
West Of Buffalo as well as East Of the
Middle West cities.
Railroads Hard Hit.
The railroads themselves and the steel
trade are perhaps the hardest hit by this
unfortunate turn OF affairs. II would
seem that the Administration. in its
! effort to avoid the appearance Of forcing
the issue between this country and
Germany and to protect American cit
liens at present residing in potentially
hostile nations. has overlooked the ssri-
Gus consequences to trade and business
in general
To prevent the free movement Of ship
ping whether on sea or on land In q
country where there has been the re-
markable expansion in commercial and
manufacturing activities that there has
been in the United States. Is very little
different in effect than clogging the
blood vessels Of the human body. Both
lead to paralysis.
Car stagnatien Results.
Not only does the congestion which
is already acute, hold up commodities
in transit, but it prevents the move
ment of cars to points where they are
most needed and holds them at points
where they prevent unloading. Stagna.
| tion is the only possible result. There 10
already relief in sight so far as the
supplies OF ships are concerned. but
il the congestion does not become any
worse 1t will require a long time to
straighten out the tangle.
That Germany could not keep up
the pace set by her submarines In
the early days of February was free
ly predicted here, and IL 10 evident
that the prophecy Is being fulfilled.
Very few Of the large vessels which
| carry the heaviest cargoes OF contra
| band have been interfered with. The
British and French liners plying be-
| tween this port and Bordeaux and
n -
very closely to their schedules. The
number OF ships sent to the bottom
! has been decreasing daily. Hints are
\ forthcoming that Britain has been
able to put her defensive operations
into effect, and 1t Is also hinted that
there has been a very considerable
loss OF submarines which are said to
have been hastily and flimsily con-
structed. 1t is likewise questioned
whether Germany can man anything
like the number of undersea boats
! that she is credited with having avail
able.
Peace May BE Near.
Assuming that such is the situa.
ton. with respect to Germany's last
desperate effort to retaliste on Eng
land for the latter's blockade. 1t may
also be assumed that peace in Europe
is nearer than most people suspect,
| Irrespective of whether the United
States may be compelled to enter
| the lists or not, the approach OF
peace should be a bullish influence.
In the first place, the old bugaboo
that peace spells the end of prosperity
over here has been pretty well elm
mated. In the second place. peace
I int los
now prevailing. just as effectively
as would a state of war between this
country and Germany. What Wall
Street is praying for is the removal
of uncertainties. The stock market
has been well liquidated. Many
stocks arc in the hands of investors
! who will not part with them lightly
There would undoubtedly be a tenn
peorary setback, probably a rather
sharp one. in the event there should
be a declaration OF war. against or
by Berlin. but il is the consensus
OF the most conservative opinion
that the movement would not carry
very far before those who are waiting
| TO get bargains would begin thelr
| buying operations.
Bond Market Restricted.
The bond market has been restrict
cd all the week and longer by the
probability Of large Government
issue in the near future. 1t is esti'
mated that the needs of the country
will require not less than S1.500.OO0,
| 600. which must be met by the issu
ancc of bonds. With such heavy fiscal
obligations impending, bond prices in
general have. been under pressure, al
I though there was some improvement
noted toward the close of the week.
The foreign loan issues have as
sumed a flrmer tone latterly. but not
until after the AnglO-French SIS had
| touched n new low record price al
aOss on two occasions. subsequently
they rallied nearly to 92. In this
connection, IL may be stated, that
| there was good deal of talk abou;
numerous foreign loans that are be
lieved to be imminent. The most i'm
portant of these Is an accommodation
| TO France. The sum mentioned is
500. 900, 900 and the yield is expected
to be something better than, pei
cent.
International bankers here have
conferred on the subject with the
Secretary OF the Treasury, presum
I ably to sound out the attitude of the
I Administration because of the eN
| tremc probability of complications OF
our own which may require all the
banking resources available. What
the outcome of the conference was Ia