New Britain herald., 1915-07-17
TRADE IN COUNTRY
RELATIVELY QUIET
Money Becoming FirIner in Lon
k don and Easier in New York.
Especial to the Herald. /,


New York, July II, 1915.-The
world is becoming accustomed 20
great events and carrespondingly great
transactions in financial affairs. ,The
largest financial operation in history
has just been completed, and its eff
feet upon this market, the only free
market Of Importance for the time
Being, proved quite inconsequentlal.
The successful placing of tie .s3,-
900, 100000 AZ per cent. British loan
I, Viii go down into history as the most
remarkable financial achievement OH
record. The previous British loan
was $1,750, 100000, mating total of
$4750, 100000 since the war began.
During the same period Germany has
issued loans amounting to $1,000
100000. The total amount OF loans
isued by all the Allies is estimated
at $4,000, 00, 200, while the total is
sued by all belligerents is placed at
ABOUT 5000, 100000. These are ig-
ures almost beyond human co1npr,-
hension. Considering size and circaln-
stances, the British loan was sub
scribed with remarkable prom ptness
much more promptly than has been
the experience of other nations.
Rumors OF German Weakness
While the terms were attractive the
net results show that In the neutral
aaarkets British credit is on a4k per
cent basis, compared with Gerlnany's
credit on a 6 per cent. basis. As to
how long the belligerents can stand
such a terrific financial strain. no safe
pfedictions can be made. Rumcrs of
German weakness are current, but
the facts are difficult to obtain, So
far as British credit is concerned, it
has suffered least Impairment Great
Britain is not only financing her own
war, but also to- a large extent that Of
her Allies. Her resources are enor-
NOUS and up to date have proved
quite equal to the stupendous strain.
On account of her position in the
worlds affairs Britain's financial abil-
tiles are of supreme interest. No
suitable com parison possible, except
that Of Napo1eonic wars century
agc. Since then Great Britains pop
ufation has trebled, while her wealth
has increased ten fold, and it isaes-
ttnated this war will cost about
per cent. Of her total wealth COM
pared with nearly one-third during |!
the Napoleonic war. Great Britain /
has enormous investments abroad. 5eS- /
tirnated at $4,000. 900. 900, which |.
provide her with handsome revenue. I
10 this must be added the profits up
on her shipping, representing nearly
orae-3aaH the worlds tonnage; ard up
On her domestic industries. . Il LOT !
which are highly developed If ii. be
toa
success In this war would ultimately I
Depend upon financial resources, the I
outlook for Germany is anything but
encouraging.
Small Effect on Market
The effect Of the British loan upon
this market was strikingly small AS
soon as its completion was announced
security prices here began tc rally,
showing that the decline OF the two
previous weeks had been mainly due
to preparations for this loan. It is cs-
tin,ated that foreign sales on this ac-
count did not aggregate more thsn
)e10o,000.0OO at the outside. which !
would make the total return Of ,ur
securities since the opening of the I
>5tock Exchange less than 100000,
1000. If we include the selling wnich |
Ijeegan when war became imminent, it |
| Is safe to say that the total return Of /
American securities on this ac- |
count during the last twelve |
lmonths has been under $780, |
100000; an amount easily absorbed |
Pby gradual liquidation, but which |
would have been tremendously ex-
ceeded IL the exchanges had not been
closed to prevent panic The unwil- |
lfngness of wealthy holders on the |