New Britain herald., 1915-09-25
NEUTRAL NATIONS
 BUYING IN U. s.
Increases Shown in Exports to
 South American Republics
Especial to the Herald)

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 l New York, Sept 25.-No develop
 ments have arisen this week to sug-
 gest the necessity of revision of. re- l cent opinion on the general financial 1 situation. While a final definite com-
 mUnication has not been received l fl om the German Foreign Office on i the sinking of the Arabic, there is | every reason for optimism that the
 ultimate result will be a satisfactory solution of the question of submarine methods of warfare so far as our own country has a practical interest. A distinct suggestion of this was con- tained in the note from Berlin on the Frye case, which gives assurance that in the future American merchantmen will not be destroyed. So long as the unfortunate conflict lasts however there unquestionably will be ever re- current shocks. These are the natural concomitants of war and must be eX- pected. But there is neither desire nor object on the part of the coun- tries at present at war to force Amer ica into the struggle; and there cer- tainly is in a large sense nothing to
 
 voluntarily participate. Hence with the complete absence of incentive it seems reasonable to conclude that the immediate futude of the market situa- tion may be judged on the basis that we are not to become actual partici- pants.
 Granting this. while there is not apt to be any imme ediate improvement of ,1,of O termed routine character with Europe we will continue to possess some com pensation in the form of activity in supplying not only the demands for war material but the products which neutral nations need and which here tofore have been so largely furnished by countries that are now at war; Tor instance the South American repub- lies to which our exports have already begun to show gratifying increases.
 Abundant Crops.
 While the so-called war specialties have made further advances during the week there has been a percepti- b]e broadening of the demand to in clude the older classes of railroad and other dividend paying securities. United States Steel Corporation shares  quotations have advanced to the 1912 level as a result of the well-known improvement that has taken place in the great iron and steel industry. The crops, which at this season are al- ways an influence that should be watched with care by conservative operators, may be considered to as- sure a harvest that, considered as a whole has never before before been equalled The volume of the corn yield will of course be larger, the longer that frost is delayed, but even on the present basis the results are highly encouraging and it is certain that the granger sections of the coun- try are to enjoy another year of pros perity in which they will be able to accumulate additional savings avail able for investments.
 The English and French gentlemen who have come to New York as re- presentatives of their respective gov ernments to negotiate a credit which will have for it's object the restora- tion of the Sterling and French ex- changes, will unquestionably be suc- cessful in their mission and the com plete details of the international ar engagement soon will be announced. This is important market factor considered from any angle. In the first place it provides for the continu- ed unrestricted exportation of Ameri- can products. At that same time it removes one of the most active in- centives for the sale by foreign hold CTS of their American securities. At the low figure which exchange touch- ed at the beginning of this month, sterling funds were at discount in this market of more than 7 per cent. 1 which meant that after selling their stocks and bonds in New York foreign holders could turn the proceeds into their own national funds on cor l respondingly attractive basis, thus ad- 1 ding the rate of the discount to the English equivalent. If the credit that l is now being negotiated fulfills it's mission the discount will disappear and the incentive to sell will be cor respondingly curtailed Meanwhile | money at home not being required in anything like it's normal volume | for home requirements is natural l ly accommodating in the banks and | a period of continued ease is | defnately in sight despite the large | credit to which reference already has l been made.
 Increased Obligations.
 As to the more remote market, | there are considerations arising form the influence of the war that it will l be desirable to keep definately in mind l refer to the increased obligations | in the direction of international fi- | nance that our country must asume. | we, ourselves, have been a l debtor country. The funds with which | our own national resources have been l developed were at the beginning con- | tributed by British and other foreign |