Finance.

Neither an advance of prices on the Stock Exchange nor a fall in them, during the opening weeks of a given year, is traditionally any index to what the character of the year will be for economic conditions in the U.S. If all the peace overtures turn out abortive, and the war continues, with no prospect of its end until 1918, the first question will concern the country's financial relations with the outside world. The action of the money market, at the end of 1916, proved pretty clearly that even an import of gold to the extent of $600,000,000 did not suffice to counterbalance so violent and general expansion of staple prices, domestic credits, and speculation in every market, as characterized last year. Therefore, the problem would be clearly presented, whether the financial history of 1917 would be that of unrestricted expansion, with increasing tension of the money market, or relaxation in the pace of the home movement.