New Britain herald., 1915-02-20
GOOD DEMAND FOR
 OUR FOOD PRODUCTS
Fundamental f,Ctor UDon Which to
 BuId Confidence, Says CItW5.
Especial to the Herald.)


 ences continue to dominate the stock
 market. This week sterling exchange
 broke to 4.79, the lowest figure re-
 corded. A sharp recovery followed
 upon rumors that large foreign gov
 ernment credits were to be estab-
 lished on this side; but the crisis in exchange necessitated fresh adjust ment to war conditions, which are TOW being more keenly felt than at
 any timo since the struggle began.
 Our foreign trade is being conducted under very abnormal and unstable
 conditions. The net result of Decem- ber's foreign trade was an excess of
 30,000,0 ,000 in exports. The balance
 has been steadily growing during
 January and February; so that it is now estimated that the excess of ex-
 ports has arisen considerably above
 $200,O00,00O since the beginning of the war. Of course the exchange market is demoralized by such un-
 usual conditions, and emergency measures were necessary.
 Displays Phenomenal Strength.
 London displays phenomenal finan- cial strength, not only in it's ability to finance Britains war, but also by it's capacity to render financial as- sistance to the allies. Under the cir cumstances the most rational relief to the exchange crisis suggested is the establishment of big credits in this market for Great Britain, France, or any of the allies whose credit may be satisfactory The belligerents will continue to want foodstuffs and war materials, and we are fortunately in a strong enough position to easily give the credit necessary on such pur- chases until more normal conditions are once again in sight.
 General business is again marking time. Industry is somewhat more ac- tive, but there is still room for a large degree of improvement. Orders are being placed with more freedom by the railroads for steel products and to this extent improvement can be re- ported in the great basic steel in dustry, all of which is at least encour- aging and strengthens the belief in pe11ldIeul turn Ol ln6 IloS. hO building trade also shows partial signs of recovery, the easier conditions or the money market and the law price of many raw materials serving to somewhat stimulate constructive op- erations The most prosperous sec tions of the country continue to be the agricultural districts, where the god harvests of last year and the high r.ri htoi ucts are making certain regions ex- ceedingly prosperous. Some interests are of course, also profting from the war. Bank clearings are still run- ming twelve per cent to fifteen per cent. below last year. Idle cars show a large increase compared with No- vember. Railroad earnings are un- 
 Investment situation Unchanged.
 The investment situation is un- There has been a fair de- mand for new issues; quite as good as could be expected in view of many conditions. The possibil- ities of large foreign demands for new capital appearing on this side keep the investment outlook somewhat un- settled. It is quite certain that to offset the losses from war there will be heavy inroads upon the supply of new capital, and good rates of inter- 1 est are equally sure to be demanded. 1 Quite a number of securities, how l ever. can be selected in this market 1 which already offer handsome returns l to the purchaser, and the growing | belief of brighter times ahead seems 1 to be an effectual barrier against any l decline. The market is !! thoroughly lquidated and foreign | selling is far from being the element 1 of Wea kness that was feared. When | -ne end of the war is in sight, a sharp 1 upward movement must be expected. | however, stock market | operations should be conducted with l persistent conservatism. Sharp fuctu- ations are inevitable owing to the 1 chances of war; the uncertainties of l which are proverbial.
 There is one fundamental factor | 1pon which to build, confidence: that 1 s there will be a good demand for 3ur food products for months to come war or no war We nave plenty to spare for export from the crops of 1914; and all indications point to arge acreage in 1915. Europe, it is certain, will raise small crops next year, even if the war terminates earlier than expected. For many req sons European soil cannot be ade- 1uate titled this year and it will be ears before the devastated districts ean fully recuperate. We may be sure therefore of profitable prices for our surplus food products for some ,ime to comic. Additional reasons or confidence are the early adjourn