New Britain herald., 1915-01-09
CAPITAL IDLE BUT BUSINESS RENTING Railroad Situation Inp1tv ng an0
 Confidence RISeS.
Especial to the Herald.D

y~Seh OL lllc new year mas S1lOWn no 'diminution of the recuperati1e in fuence observed in our previous ad- vices. The war is still the domnat- ing factor, and must so continue until peace is in sight. No great changes in this respect appear to be antici- pated until military preparations are energized by the approach of spring. For the time being the contending armies at a deadlock, which can only be broken by vigorous fresh initiative. The London Stock Exchange reopen ed on Monday with scarcely a ripple. Transactions there have been rela- lively unimportant owing to the nu- merous restrictions still imposed London, however. seems to be thor oughly adjusted to war conditions.
 The effect of the war upon it's se- curity markets is shown in the fact that the total new British issues for the year amounted to about 512, 2,O00, 900 pounds against 196, 100000 pounds year ago. The figures for 1914 included the war loan of 232, OOO,O0 pounds, but not the 100000 pounds of treasury bills. Of the new issues nearly S1,000,o00 pounds went to British possessions, 12,0O0,00O pounds to Russia, 5,000,O0O pounds to other European countries and $1O, 100000 to the United States. Last 6car British investments in the United DBtates were about 18,0OO,00O pounds and the year before 23,OOO,OOO pounds. Outside of war loans, the largest sin gle field for British investments con- tinues to be railroads, especially in India and Canada.
 The total issues of new capital in the principal states of this country in. 1914 amounted to s1,436, 5OO,O 900, compared With $1,645, 5,00O,OOO for the previous year, a decrease of $2O9,0OO,- 0OO. These new issues for 1914 in clude $64S,0 100000 for bonds, s525,- 900, 900 for notes and S262, 100000 for stocks. The changes indicate an in crease of 42,O0O,O00 in railroad bonds and notes but a decrease of $66, ,0OO,- 900 in railroad stocks. In industrial corporations there was a decline in all issues amounting to s1O,0OO,OOO in bonds, S51,000.O0O in notes and s123, 100000 in stocks These fig ures show conclusively the depressing effect of the continued attacks upon business interests by the various leg islatures.
 Tt is quite evident that at present Our industrial activities are not keep ing pace with the natural growth of the country. Enterprise has been checked. Capital is relatively idle, and must be accommodating in spite of diminished profits in many lines of industries. As confidence is re- stored enterprise will revive, capital will come out of hiding and the in vestment situation should gradually improve. Although the usual Jan uary investment demand has not yet materialized, there are indications of coming revival. One mark of re- covery is the important new issues announced this week by the St. Paul and the Pennsylvania railroad sys- tems. Both of these organizations are about to put out important f1o- tations which they would not be apt to offer unless in their opinion the situation was favorable. Another in dication of reviving confidence is the increasing orders placed by the rail- roads for rails, cars and other ma terials. This changed attitude on part of railroad managers is not doubt largely due to the concessions re- gently granted by the interstate com merce commission, and the belief that that body has moderated it's long continued attitude of hostility. As railroad earnings continue very un- satisfa ctory, this display of confidence on the part of railroad managers is idoubly assuring. So far as the steel industry is concerned the volume of orders is still very small and prices are so low that profits must be nom- inal. Neverthe eless, the disposition of the railroads, the largest and shreWd- est buyers of steel, to enter the mar ket at this time is a positive exhi- bition of confidence in the future
 Money continues very easy to good Borrowers, and funds are now re-
 turning from the interior with in creased freedom. There is a con-
 tinued surplus of currency, which
 however, is being slowly countera cte,
 by retirement of the emergency issue
 under the A1drich-Vreeland act A
 further break in foreign exchange to
 the lowest figure since 1907 was also
 a. favorable indication, being chiefly
 due to 8 larger supply of foodstuffs
 and cotton which are now going out
 ward in largo quantities.. A sharp
 advance occurred in wheat owing to
 foreign buying. This means increas
 ing profits for the western farmer and
 also serves to increase the excess of
 exports over imports which for the
 month of December are expected to reach about $110,OO0. 900. The situa
 tion, therefore, is in favor of gold i'm
 ports rather than exports, and the 7 shipment this week to Paris must be regarded as special transa ctiO1l.
 Gold might come from Canada. but is
 virtually at a premium, and none of fhe European nations will part with fne precious metal.
 The tendency of prices on the New