The sun., 1917-07-30
FINANCIAL NEWS
AND COMMENT
Wall Streets Army Of Econo-
mists Charges Into Every
Business Trench.
THEN BLINDED WITH DUST
Conservatism Is the Only Safe
Course With SO Many I'm
certainties Ahead.

Wall street economists are divided In
their opinions regarding the effect of
taxation and bond issues incident to the
country's war financing upon prices for
commodities and stocks. They are un-
able to agree as to the probable effects
Of the tremendous expenditures which
the United States must make in order to
prosecute the war along successful lines,
but In the greater number OF instances
they appear to see in conditions as they
exist to-day no reason for great en-
thusiasm or acute pessimsm over the
outcome Of our various problems. which
are only in their infancy and which can
be solved only by greater cooperation
and greater elimination of personal
opinions in the interest Of the common
good by our representatives In WASH
ington.
Both Wall Street and the public are
perplexed, but they are not in despair.
The financial district and those who are
without the financial district are watch
ing the course of affairs In Washington
with the keenest interest for some incen-
tive by which they may shape their
speculative and investment operations.
Yet inspiration does not come from the
capital. II is wistful watching in the
more than that: It Is tiresome watching
and almost painful waiting.
In this period OF waiting and watch
ing financial transactions are held in
allegiance. Investment and speculative
commitments are confined to small
totals new business engagements. ex-
cept for urgent needs, are not in favor
extended operations have fallen into the
discard. And in many lines OF business
decided reactions are under way, while
in the greater number of lines there is
a slowing down which generally is
looked for at this time OF the year, but
which in the present instance is accen-
tuated by the uncertainties accompany
ing this country's participation in the
worlds war Relatively idle days are In
the midst of us, and in consequence the
financial community Is developing an
army OF economists who. with nothing
but time on their hands. are discussing
the economies OF the war. both along
sound lines and along unsound lines.
Changes and Readjustments.
The real economists are endeavoring
to impress upon the public the fact
economic changes and readjustments
already are under way and that with
those changes and establishments new
prospective must be formed. Those
economists whose reasoning is not based
upon sound principles insist that the
public has nothing to fear from the
conditions which the war Is developing
and that in spite of changes and re-
adjustments money and business are not
to be driven into a new position. and
that merely because prices for stocks
are low and prices for mortgage issues
arc low there must OF necessity come to
the respective markets the greatest ap-
probation in market values ever re-
ported in the history OF Wall Street.
This is a period OF extraordinary and
abnormal factors. 1t is a period SO alb
normal and so extraordinary that even
some Of the old economic theories may
be swept aside. 1t certainly is- not a
period when precedent may be safely
utilized as a basis for market operations.
either in finance or trade, while 1t most
assuredlly is not a period warranting
the suggestion, which is glibly put forth
in more than one quarter In Wall Street.
that war is to make this country richer
In every particular than II ever has been
before, or that fortunes are in the maxi
ing for the man who will buy every
thing in sight and hold the things he
buys for the sensational inhations in
prices which we are told lies but a short
distance ahead. 1t may cost something
to carry those things before higher
prices come and then the cost of war
taxation and war sacrifices may tend
to upset all the plans OF the buyer who
has his thoughts focused upon the fu-
ture.