New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-16
ALL REPORTS INDICATE
WORLDWIDE PROSPERITY
snecuIative Fever, the Natural
CoroIIary, Ready to Burst
Forth in Europe.
U. S. INDUSTRIALS GOOD
Room Certain to Affect These
Favorably-Railroad Shares
Likely to Remain
Under Cloud.
By Gable to The Tribune. !

London. Sept. 15.-Trade reports for
August show a record month for the
foreign trade OF Great Britain. with
prospects of a record year.
The foreign trade of England last
month was SiOOOO0OOO more than IN
August. 1911, while for the first eight
months Of the year II was $500. COCOON
more than for the same period last
year. At the same time there are
abundant signs that the home trade is
as good as the foreign trade, and that
the national prosperity ought to con-
tinue.
Unemployment last month was lower
than for many years and, with the eX-
ception Of agriculture, the staple Brit
,sh industries are hourishing. The cot
ION trades unions report full employ
ment. more ships are being built and
engineers report no unemployed and
this condition applies TO industry gen
orally.
Meanwhile reports from the whole
world are of the same general nature
everywhere. Great trade expansion
and increased business are expected
the anticipation being built for the
most part on the worlds bumper crop
yield.
In France and Germany.
In most parts of the world the eX-
pectation is for an expansion on strict
IL legitimate lines of business. but
France and Germany are looking for
a great speculative expansion also.
Naturally an increase of speculation
would come with general prosperity.
and greater speculative activity may be
expected everywhere with the business
revival, but in France and Germany
The speculative tendency at this time
seems stronger than elsewhere.
For some months German authorities
have been issuing warnings against the
extension Of speculative commitments,
and the present position Of Germany is
causing considerable uneasiness in
financial centres in anticipation Of the
settlement two weeks hence. but as the
present quarter is drawing to a close
without any evidences of trouble the
warnings are no longer being heard,
and instead we are hearing promises
that both Germany and France are
about TO enter upon a period OF ire
mendous speculative activity.
In those countries where speculation
will not be so apparent as genuine
business expansion 1t is naturally an
interesting question what direction this
growth will take. The answer ior both
England and the United States seems
to be that we are likely to see indus
trials of all kinds improve. Trade is
so good and so certain to become bet
Ter because of the abundant crops in
all parts Of the world that soundly
managed industrial companies must do
well and will be in a position to pay
better dividends, and this will be
helped. especially in the United states,
by the fact that the situation of the
railroads is quite unsettled, there being
at the same time the constant de-
mands Of employees for ipcreased pay
and the persistent refusals by the gov
eminent OF the oft repeated requests
for permission to raise freight rates.
Hard Time for Railroads.
As the payrolls go up the railroads
under these circumstances can hardly
10 expected to pay better DIVIDENDS
and In competition with industrials'
where constantly increasing prosperity
renders increase OF dividends possible.
ii looks as though the railroads were
going TO find it difficult even 10 find the
new capital it will need for necessary
improvements.
The outlook in the money market has
become better and the tone more cheer
full II is even said now in some quar-
ters that the Bank Of England may
not find IT necessary TO increase its
6sc0unt rate to ; per cent, while it