New Britain herald., 1915-08-07
BUSINESS OUTLOOK
 MOST FAVORABLE
Henry CleVs, However, Advises z Sharp Lookout for SetbaCks
Especial te! the Herald,

a a Especial te the Herald,
 New York, Aug. 7.-The war group of the Steel shares are energetically discounting future prosperity. War contracts have of course been the chief stimulus. Many machinery and nanufacturing plants have been turned into intuition Factories, a few CT the largest concerns having secured enormous contracts which must be filled within. the next few months. There is much exaggeration as to both profits and size or some of these orders. but large profits are unques- lcnably in sight for 9 few special con- cerns, and meanwhile the speculative gpirit has been thoroughly aroused Fafter long period Of rorpidity. The concerns securing war orders are in ' ev1tably large consumers of semi manufactured materials, tools, etc., and their suh-contracts with pro- ducers of r2-w materials are chiefly re- sponsible for the present activity in the iron and steel trade, which is 9aily expanding. This industry is K Eclng veritable boom. Capacity is new employed to at least 90 per cent. and many concerns are fully employed or running overtime. Prices are ad- NAhSiIlS udIly dIIu pIOullSC tO go con- s1aerably higher. It is estimated that war contracts are absorbing about 20 to 25 per cent of current raw materi- ais output and that domestic trade has not yet reached anything like the normal level Buyers, however are k being forced to place orders more peely than intended in order to an ticipate higher prices and to secure deliveries. The building trade is re- Kiving. Ship building is active and railroads are placing orders more freely for rolling stock and euuip- 1nent, though rails still seem to be { somewhat in comparison neglected. < The outlook for the steel trade, how ever, during the next twelve months seems unusually soseate. Peace is not Hn sight and war orders will continue Cur own government will also prob ably be a large buyer Tor army and navy equipment and domestic trade is practivally certain of further re- covery. When peace comes our ex- port trade in cars, ocomotives, bridge material, etc., should be greatly stimulated for the reason that the territory devastated by war will have to be promptly rebuilt and deliveries < will be more promptly obtained from < the United States than from any other direction. Demand from this source cannot be expected to continue. It is quite likely to- abate later on, espec- ially as Germany and England get back to something like normal in- dustrial activity. Neveruneress, it is $ evident that for some time to come B the American steel industry is in for. q a period of decided prosperity. This has been largely discounted by the rise i'll the war group of, Steel shares and liquidation may be expected to in- crease as the advance progresses.
 General Outlook Promising.
 The activity in Steel will soon be re- Y f1ected in better business conditions throughout the iron and steel dis tricts. Large movements of ore are
 expected on the Lakes. The railroads will benefit from larger traffic both Nfys. Labor will be better employed az higher wages, and the fall demand ! for many articles of clothing, food and furnishings will be in large volume this autumn. In the agricultural dis tricts the outlook is quite as promis- ing. Some slight decrease in con- ditions may be caused by last weeks unfavorable weather, but the agricultural outlook as a whole is. eunimpaired and the indi-
 
 satisfactory prices in all parts of the *country. Even the cotton situation is not so bad as at one time represented, and the South while undoubtedly in- ccnvenienced by the war, though no \ more than certain other sections of the country, will doubtless emerge in fairly satisfactory condition.
 War continues to dominate the mar ket, although the situation is less
 Threatening since our foreign rela-
 tions are decidedly more satisfactory. 4 Our differences with Great Britain
 are in a fair way of adjustment. They
 affect property rights on1y and arbi
 tration will be adequate to settle the
 differences between us, just as it has
 been in numerous controversies for
 the past one hundred years Our diff terences with Germany are rather
 more serious, since they involve the
 safety of American lives at sea. But fortunately Germany has lately shown
 more conciIatory spirit and is ap