New Britain herald., 1915-12-31

placed upon our bankers to restrain
 such tendencies. It is estimated that
 during the year we have taken back
 fully $1,000, 100000 of our securities
 held abroad, while we have granted
 loans to the amount of about $S0O,-
 100000. In addition we have taken
 back large sums of other obligations
 which, cannot be traced, so that it is
 safe to say that foreign investments
 here, which at one time amounted to
 $5,000, 100000, has been lessened full
 ly $3,500, 0,o00,o00, showing a most re-
 markable investing or absorzing pow
 CT in the United States. By means of
 these transactions we have greatly re-
 duced our obligations abroad; our
 remittances in the future will be less
 and we will be to that extent better
 able to meet our domestic require
 ments for capital at home. If the
 war had done us no other good, it
 has proved and fully awakened us to
 realization of our financial inde-
 pendence. Henceforth we will be
 less and less a borrowing nation, while
 our ability to lend abroad will cor
 respondingly increase. The net result
 will be to immensely advance New
 York as an international financial
 center. London's pre-eminence in this respect is not likely to be ser iously shaken by the war, but New
 York promises to soon become a good second.
 Abnormal Foreign Trade.
 Abnormal conditions continue in foreign trade. During the twelve months ending November goth our npfc
 $1,S36, 100000 more than a year ago. imports during the same period reached $1,730. 100000, a decrease of SIPS, S,0oO,ooo. The excess of exports for this period was $1.707,oOO.O .OO0. and it is estimated that the excess for the year ending December 31st will approach $2,000, 100000. This phe- nomenal expansion was chiefly due to larger shipments of foodstuffs and munitions, the latter including any thing from explosives and firearms to mules and automobiles. It has been practically offset by loans, credits, gold imports and foreign sales of securities etc. For several months the exchange situation was decidedly ser lcus and caused 8 marked deprecia- tion in the pound sterling. As a re- suit, however, of the Anglo-French loan and the recent mobilization of British credit, exchange has greatly improved and now appears to be we'll under control of London bank CTS, so that no @ further crisis such as was seen last summer is likely to be again experienced. The greatest increases in exports of mer- chandise were to the belligerent na- tions: Germany and Austria excepted. The British empire is now taking nearly one-half of our exports, and France, Italy and Russia have also been much heavier buyers than us ua1. Of course, our foreign trade, enormous in bulk, is too abnormal or one-sided to be really satisfactory. When the war is over readjustment to a peace basis will be necessary; but return to former conditions need not be immediately expected. Should imitation put this country upon a high price level, the necessary readjust- ment will be all the more awkward and difficult. Great Britain, Ger many, and France are almost sure to be upon a much lower cost basis after the war than ourselves. For a lime France and Belgium will i1e actively occupied in reconstruction, but it seems that both Great Britain and Germany will escape with little destruction of cities or plant. Both these countries will again engage in fierce competition for foreign markets, and unless we are prepared to meet this competition, we must expect to lose a very considerable percentage of the advantages recently gained in foreign markets. It may be that wages in Europe will not be able to match some of the articles made in the United States, these being prob ems that must be worked out in the future. Tn this connection, one other thing must not be forgotten. Suc- ,essful trade must always be of mu- ,ual benefit, or it cannot last. Eu- cope's losses and misfortunes can- not permanently be. our gain. The more impoverished Britain, Germany pr France become, the less able will hey be to buy from us; and. less we ouy from them the less we can sell. AS in domestic trade, so in foreign, 'eal prosperity lies in as abundant md free an interchange of products IS possible, all friction and interfer- snce inevitably meaning losses.
 Local Outlook.
 The position of the stock market IS l 7astly better than year ago. This 1 act has been largely discounted by 1 he rise which eliminated in October. ! The decline since then was largely in | he industrials most affected by the | var, it being recognized that their abnormal profits cannot continue for he reason that the belligerents are low better able to supply their own munitions. Nevertheless, many of i he industrials will benefit from the egitimate revival of business induced ,y a rich harvest and the late pie hora of money. The railroads. how etc 40 hnaa ,h-fr