New Britain herald., 1915-07-24

because an indefinite period must elapse before Europe can again send up sufficient merchandise or gold to even approximately balance our ex- ports Gold we do not absolutely need, and Europe cannot spare it in large amounts. Thus far, Europe has returned us between four to nve hundred millions of our securities; but European indebtedness to Amer ican manufacturers will increase on ar enormous scale during the next six months, and the Foreign Exchange situation will be one demanding the highest skill and resourcefulness for solution. Foreign holders, especially British, seem unwilling to part With their American investments. It would seem, however, as if partial SOUL tion will be the sending back to this country of a still larger portion of their holdings in Americans. The Canadian 5,OOO,OOO per cent. loan, which will probably be promptly sub- scribed, will also help the situation.
 Only Free Market.
 The United States is the only im- portant nation in world that is now accumula!ing capital from it's savings It is also the only free investment market in: the world, since all the great powers of Europe are pouring their savings and energies into the wretched melting pot of war. There are no indications, however, as yet, of American disposition to buy foreign government bonds with any freedom. | A fair amount might be absorbed by | institutions and trust funds here es- pecially if terms were made still more | attractive; but the amount would be 1 relatively small when compared with | the many billions already issued l abroad. If, then, American manufac- turers are .o continue accepting f munition contracts some very exten- | sive credits will have to be arranged | for by American bankers, and when credits or short term obligations, whatever it may be, will eventually | have to be extended or turned into fixed debt in some form. It is well, therefore, to keep in mind as to what would be the effect of this immense mass of foreign credits upon Ameri- can finances, especially in view of the fact that the market for these for eign obligations on this side will ne- cessarily be limited. Of course, the ! credits thus far granted have inn posed no financial strain here, and | they could undoubtedly be greatly ex- banded without harm; but new l factor of great importance is being introduced into our finances, one with which American bankers and inves- tors are not entirely familiar, and | the handling of this problem success fully will require the greatest pru- dence and the most skillful foresight. | The best and most natural adjust ment would be a gradual return of American securities from abroad, which investors here would doubtless absorb and which foreign holders could realize upon to better advantage than upon their home investments, for which there is only an indifferent outside market. A further return Of American securities here would do no harm We have plenty of funds to invest; but the owners are shy of new products, and inclined more to shares of we'll established concerns, whose market values have been sustained in spite of present adverse circum- stances. There is no doubt about one fact, and that is, American stocks, railroad or industrial, of the better class are now the most desirable and most substantial of any in the worlds | markets. Our growing resources, f1- nancial industrial and commercial, as we'll as our freedom and distance 1 from European distributions, entitlc them to preference above all others
 Home Conditions Satisfactory
 Home conditions are generally satis- factory. The crop outlook is particu-