New Britain herald., 1915-07-17

other side to part with their American
investments is exceedingly pros
nounced; and there is no doubt that
a considerable proportion Of The Sc
Ecurities which have been sent co this
side are held for safe keeping. or as
| collateral against foreign loans.
While many of our staple ex-
ports have been seriously interrupted
not only with the belligerents, but al
so with neutral countries whose pur-
chasing abilities have been lessaned
by the war; The excess exports, how
ever, continues because of the out
ward movement of foodstuffs and mu-
nitions of war. Orders for munitions
received months ago are now being
filled, and within the next few weeks
there will be much larger outward
movement, accompanied also by ship-
ments on account of the new crops.
IT is quite certain that the next six
months will witness another heavy
excess of exports; possibly as large II
not larger than during the first six
months of the current year. This
means a further expansion Of foreign
obligations on this side. Internat-on-
al bookkeeping accounts have become
much deranged, but solution of til
problem through natural means Is
now in sight. Britain's credit stands
high in spite Of the strain imposed.
Money is naturally becoming tirmer
in London and easier in New York.
This will tend to restrain gold ship
ments to this side, and facilitate. for
eign borrowing or credits in this
market. 1t may be said that extern
sive arrangements to that end are al
ready under negotiation. The outlook
here is for easy money for some
months to come. We have an enor-
nous gold supply estimated at ST.
500, 100000. The Federal Reserve
banks report surplus of s73o,0o0,-
900 representing loaning power cf
over 100000, which is only
one-third Of the nations banking re-
sources. Trade in the United states
is relatively quiet, and the demand
for accommodations restricted; all of
which tends to easy money.
Cash and Credit Plentiful.
It seems somewhat paradoxical to
affirm that cash and credit will be
plentiful during the balance of the
year at relatively low rates, while
Sopilai VIII DS SCdTCG anu
ing advancing rates; but that is the
truth. The explanation is that cash
and credit are used chiefly tor teri
porary purposes, and are vitality af-
fected by the supply Of abl;,
funds. Capital is usually wealth in
fixed form; and its source OF supply
is chiefly derived from national saw
ings. The crop. outlook continues
;c,sv a
is unusually sound. About tho only
note of complaint comes from the
South, where Interference with the
export Of cotton may become a seri-
Gus consideration. The creates st ac-.
tivity in any industry is at present
manifested in the steel industry which
is now running at approximately 90
per cent Of capacity, while prices are
generally advancing. War contracts
have been the chief stimulant, but a.
steady increase is observable IN do
nestle business, stimulated, of course,
BY advancing prices, and the prospect
Of a still further rise.
The stock ma rket shows. so.lae fe- /
Fefislfnesss lowing ITO fluctuations
caused by the war and our uncertain
relations with Germany. The rise
following the placing of the British
loans was somewhat stimulated by
short covering. It was further aided
by the favorable action of Germany
IN offering, regrets and compensation
or the Nebraskan incident. easy
money and good business prosp ects
tend to higher sprices for Sc
eurities; so does the certainty or
good demand for our steel and asrl-
cultural products The only offsets or
are the war and the Gls-
heartening waste Of life and wealth.
HENRY CLEWS.