New Britain herald., 1914-07-18
of the unsatisfactory Balkan out
Rather Formidable Array.

The above is a rather formidable array of unfavorable factors. Hap oily they have been largely discount ed by the present lower range of values. Let us now turn to consider ations of more favorable nature, in order to counteract the abnormal pes simism which is often beyond justi- fication. There is one important fac tor not yet sufficiently realized in this part of the country; and that is the crop outlook. It should not be for
 gotten that this country will probably produce about nine or ten billion dol lars worth of new wealth on the farms this year. We are practically sure of the biggest wheat. crop on re- cord. A large corn crop is in pros pect and the outlook is for a good cotton crop. The cattle yield may be short, but that is because the land is being turned to more profitable uses. Throughout the west there is spirit of well-founded hopefulness among merchants and manufacturers An other fact of decided encouragement is the resignation of Huerta. This renders still more remote the possibll- ity of our armed intervention in Mexican affairs. Those who succeed to the government of Mexico are like ly to pay more respect to the wishes of the United States than Huerta in the abilitating of that unfortunate country; and the result will be healthfu to Mexico and serve to pro-
 mote more harmonious relations With the United States. A few weeks ago, Mexico was a highly disturbing fac- tor in this market but that danger has now certainly practically dlsap- peared. This change for the better has not yet been discounted. Still an- other favorable symptom which has not yet been sufficiently recognized is the more friendly attitude of the ad- ministration toward big business. The, administration policies are .almo ost entirely completed; and the outlook is that the antitrust measure, which congress expects to pass before ad- journing, will be framed upon more reasonable lines than at first ant1c1- pated. One more element of en- eouragement is the money outlook. During the next few months there will be no lack of loanable funds to good borrowers, although a closer scrutiny of credit may be anticipated. Secretary McAdoos announced will ingness to release treasury funds for the purpose of aiding the crop move ment was both wise and timely. Our banks are in an unusually satisfactory condition, and we'll prepared to, go into the new reserve system.~4
 Rate Decision Soon.
 Taken as whole, the outlook is that good crops, easy money, the elimination of Huerta and the more friendly attitude of the administra- ton at Washington will do much to offset the many unfavorable condi- tions, which have already been largely discounted. It is rumored that the rate decision will be announced this week. If so, it will serve as a controlling factor for the time be- ing. Should favorable decision be forthcoming, which just now is less hopeful, but, if otherwise, it will do much to restore confidence among in- vestors and industrial leaders. If the j decision is unfayorable, still lower prices may follow unless the effect be discounted in advance. For this reason continued caution is necessary in all financial transactions. HENRY CLEwS.