New Britain herald., 1915-12-11

year. In values, however, the ir- crease is very unusual owing to ris- ing prices and speculation which mag nifty or distort our so-called prosper ity. Railroad traffic is heavy owing to the larger shipments of westboupd merchandise. Higher freight rates, ample traffic and reduced expenses combine to make the present season one of exceptional profit to railroads. How permanent these factors will be remains to be seen; and if our great transportation lines are in future a1- lowed to make a living profit, it will be better for all concerned. The public must have better traffic fact- lities, the expansion of which has been checked by unreasonably repres- s1ve policies of the government and Interstate commission. It is @ promis- ing symptom that President Wilson suggested a commission for the pur- pose of studying the railroad problem, the proper solution of which is so vital to national welfare.
 OutlOoks Promising.
 While the agricultural, industrial. mercantile and transportation out looks are each promising, the same is to be said of the financial outlook. Our banking institutions are in ex- ceptionally good position. The new reserve system works smoothly and has vastly increased the supply of credit. So, too, has the tremendous influx of gold, amounting to about $40O,O0O,O00 so far this year. There has been an amazing expansion of credit as is strinkingly shown by the loans of New York banks, many Ia inC it11ti in, York having shown in increase of over 100 per cent in about a year. This growth of deposits is, of course, | largely due to the expansion in loans | which have in turn been greatly au- gmented by operations connected l with the Anglo-French loan and oth- CT important international issues, not | to mention the extensive credits granted to several of the European | belligerents. In spite of these ex. operations, the money 1 market continues abundantly supplied | with funds at easy rates. The stimu- Jus of these conditions should not be | overlooked. We are already in pe:- iod of imitation, and this has much to do with the prevailing rise in val ues and the activity which that ten- dency inevitably promotes. Conser- vative bankers are alive to the dan- gers which the monetary situation invites.
 Dividend Payments.
 January dividend payments prom ise to be larger than usual as a re- suit of trade revival at home and the effect of war profits. A year ago | the January dividend and interest payments recorded amounted to about | S24O, 100000 or $15,00O,000 below the previous year. This loss will be more than made good next January for the reason that many dividends will be restored to their former level, new dividends will be started some have been resumed which had entire ly stopped, other regular dividends will be increased or extra ones paid, while not a few cumulative dividends passed will be paid off. It is safe to say the January dis bursements will be more satisfactory than any since the depression, which is now rapidly disappearing, began.
 Speculation on the Stock Exchange by the influences referr- ed to above. The war group has been somewhat cratic and frequently lower. Railroad shares, likewise the better class of industrials were, how ever, we'll sustained. In the bond market some weakness developed, largely because of continued foreign sales and the arrival of considerable from abroad. Recent de- in the Balkans were also influences.
 HENRY CLEWS.