New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1915-07-03
u. S. SAVING MONEY
FREELY DESPITE VAR
Business Fair Economy Has Re-
placed Extravaganza, Says CleWs

New York, July 3,-With the an
proach Of independence Holidays. the
natural tendency for activity on the
Stock Exchange was to diminish.
During the week foreign selling Of
Am erican stocks became more and
more evident. This was due mainly
to liquidation of foreign holdings,
rendered necessary by preparations
for the forthcoming huge war loan
in London. and purchases in the
United States. For some time to
come cur large excess Of exports over
imports is likely to have a mater
ial effect uron the international Sc
curities movement. During the twelve
months lust closed our merchandise
exports have exceeded imports by
about $1,000, 100000. During the
same period We have also imported
over s125, 900, 600 In gold. How far
the unseen items in the international
account have gone towards ilquidat-
ing Europe's Indebtedness. it is im-
possible to say Diminished remit
tances on account of dividends, in
terest, freights, tourists. commissions.
ETC., would tend to materially coun..
teract this excess of exports. Never
theless, there is every prospect that
a heavy preponderance of the latter
will continue until the termination
of the war. Orders for munitions
by European governm ents to the ex-
tent Of about $1,000, 000,0 900 have all
ready been received. and more big
contracts are in course of negotiation.
The bulk OF these orders. which are
now being forwarded, will probably
be shipped during the next twelve
months. That Europe will be able TO
increase her shipments of merchan-
dis in payment is exceedingly doubtful
because each beliigerent is turning SO
large part of it energies to war.
The conditions are, therefore. ex-
tremely favorable for a continued
influx of American securities. 1t -
estimated that the recorded of Amer
lean railroad shares In Europe are
about $4,000, 100000 of which more
than two-thirds represent bonds ard
notes; but these figures do not include
industrials. State and municipal is
sues. nor real estate or other FORMS
of investm ents. When IL is remem-
bered that this country creates new
securities at the rate of $1.500,0 0O,-
600, to s2,5o0,000,000 per year, or
even more, some idea of the invest
nent capacity of the United States
can be sained. In good years we
have issued and absorbed $1,000, 060,-
900 of new railroad securities alone
without Inconvenience, and to these
figures must be added many other
forms, of investments not really re-
corded or discovered.
Saving Money Freely.
While this country is not today en-
1oying the same degree Of prosperity
that It did three or four years ago,
It is nevertheless saving money freely.
because business is fair in volur,re
and economy has taken the place OF
extravaganza in both business and pri-
waite expenditures. The chief source
Of extrava gance today is in govern
m ent state and municipal enterprises;
source Of waste that calls loudly
for restraint and greater eff1ciencg
There is no doubt a large amount of
ca pital seeking good investments; and.
with confidence and enterprise at
home established. our ability to- take
back a fair amount of foreign hold
ings in Arr orleans is unquestioned.
In all probability American investors
will have chance to buy some of The
gilt-edged securities now held by rich
foreign holders st prices which will
yield considerable profits after the
war when conditions have become
more normal A more favorable OPP
portunity for taking back a consider
able amount of Am rican stocks could
not be expected. Such a policy would
strengthen this country financially and
4industrial!y. Our foreign obligations
would be diminished, and Europe
would be better able to conduct The
war by withdrawing temporarily at
least a portion of its invested capitat
in the United States. This does not
mean that we shall no longer need
foreign capital, or that we have as yet
reached the point where we will have
capital to lend abroad When nor
NAL conditions are resumed, the d.
yelopment OF our natural resources
and Of our city and industrial life will
require large sums; much larger in
fact than we will be able to command
at home. At no distant future We
may again be seeking foreign capital.
though not on the same scale as dur
ing the last fifty years; while on
the other hand before another fifty
has passed we may have become one
Of the first lending nations in the
world, II not the first.
Commanding Higher Rates.
Perhaps the most significant effec.
of the war was the low prices rea-
lized on New York City's Az per
cent loan, proving that as result of
the war capital is commanding high
err rates. This tendency should cause
mr. Gill ri hi in he
pected to continue as long as war Il =,
nancing remains the dominating Gle.
n1ent in the worlds finances. ItA isl
not nnssi bile ia wa ste S12 nna 0nn