New Britain herald., 1915-01-23
BUSINESS OUTLOOK
 VERY ENCOURAGING
Improvement Shou d Continue Barring
 unfavoTab'c Developments.
Especial to the Heralu)

past is already expressing itself in business improvement. Since the re- opening of the Stock Exchange values of active stocks have risen on an average of from 5 to points and in some cases the advance has been as much as ten points, and over. So far, the rise has been ac- , complished without any important realizing either by foreign or domes- tic interests The market shows a steady broadening of activity and gives every indication of a sound and healthy change for the better. Among the most encouraging elements have been the ease of money, the adjust n1ent of credit to war conditions and the extra ordinary expansion in our \ export trade. The low rates for < money stimulated the inquiry for long term bonds, which are likely to sell at considerably better than current prices. We are still sending large quantities of grain, cotton and war material to Europe. These move ments will inevita bly continue for some time to come, and would be even more active were it not for the diffi- culty of finding outward freight room. In view of the heavy decrease in inn portations, conditions favor gold i'm
 
 Ee resisted by European governments because of the desire to retain gold during the war. Nearly every Euro pean nation has established large credits in the United States. pre- sunab1y to pay for the exigencies of War. Great Britain, moreover, has temporarily prohibited new capital issues until more sure of it's own war > financing. the result of which will be tc make still greater demands upon the United States for funds. This country has lately given an amazing exhibition of financial strength, which will vastly augment it's prestige in the money markets of the world. One result of the war has been to turn the attention of American manufac- Iturers to the great opportunities in export trade. An active campaign is already being carried on in this direc- tion which is likely to result in an important expansion of American foreign trade in manufactures. Hitherto raw products have consti- tuted too large proportion of our shipments. We desire to sell the products of our mills to foreigners as 'swell as the products of our farms
 General Business Improving. General business shows signs of inn provenent. Bank cearings. which are generally accepted fair barometer of trade conditions, at all points in the United States showed a decrease of only three per cent. in the first week of January. The . heaviest shrinkage was, of course. in the Eastern States. where financial l and industrial depression combined to l emphasize reaction. Outside of the 1 Eastern States however, the reaction 1 Is not particularly severe, and many 1 localities show handsome gains over 1 last year, particularly in the grain 1 districts. .1 To a considerable extent the present depression in business is a state of mind originating in the financial and industrial centers where initiative usually begins. With a continuance of the present improvement in conf dence further business activity should be expected, especially when the com Ing of spring permits the resumption of outdoor work. The steel trade is Sshowing more or less improvement. i. Fair orders have been placed for rails, rolling stock, etc, and present low prices are quite likely to stimulate the demand for construction material. In the textile trades there is also a widening of activity Cotton goods are in better request owing to low prices. and a decidedly optimistic tone l, prevails in some branches of the tex tile industry, notably the hosiery trade.
 Not Entirely Satisfactory.
 The railroad situation is not entire ly satisfactory owing to the small volume of traffic many lines. especially in the South where delay :. In the cotton movement has retarded Nbusiness. The conflict of authority between state and federal regulation Of rates arising out of the recent rate decision is also drawback, although 1t only delays somewhat the date when higher rates go into effect. On the other hand the roads running through the grain district are enjoy ing a larger traffic, and our trans continental lines promise to do d better tourist business than usual be- cause of the approaching opening of the Panama exhibitions at San Fran cisco and San Diego. The war will practically suspend tourist travel in Europe, and greatly stimulate it in the United States. Here is one consider able offset to the war generally over looked. As American tourists annual -ly spend nearly $3oO,OOO, 900 on their Hummer travels abroad. and the bulk
 Of this will be spent at home this year, considerable aid to business will
 come from this source.
 There is no occasion for modifying the very hopeful views expressed Tn these advices for several weeks past:
 in fact we see no reason why inn Aprovement should not continue in the
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