New Britain herald., 1915-10-30
RAILROADS ENTERING
 ERA OF PROSPERITY
General Trade of Country ImprOV-
 ing, Says Henry CleWs
,pecia. to the HeraId.'

hoa, on inc wane. This may be ac- counted for in various ways. War nrofits seem to have been sufficiently discounted for the time being. Liuuidation was to be expected a1ter such boisterous rise, and, what was more important, very declded op- position developed against reckless operations in some of the speclaltles, which if not restrained threatened to endanger the whole market and arrest a more orderly and substantial ad- vance The war news also had an un- settling influence.
 A further reason for lessened inter- est in the specialties was that the rail- roads and better class of 1ndustrials now offer safer opportunities for either investment or speculation. Home conditions have certainly changed. There is no longer a scare ity of traffic; on the contrary, there is more probability of a scarcity of transportation. The biggest harvest on record is waiting to be handled, assuring ample local traffic for the railroads. which will be further stim- ulated by prosperity of the farmers and a consequent activity of business in those sections. A larger portion of this harvest than usual will be brought to the seaboard for export, especially as there Is. no early pros pect of Russian grain supplies moving through the Dardanelles. Added to the rush of grain eastward and mer- chandise westward will be enormous shipments of ammunitions which are now running in full volume, fulfilling early orders. Henceforward, these shipments will be much heavier than at any time since the war thus creat- ing a large increase in freight for Eastern railroads. The earnings of the latter for the next few months will show big gains both gross and net Transportation facilities at this port are already seriously overtaxed, and freight congestion is becoming more severe daily. The same is true only in @ less degree at the west, where the grain movement is already in full swing. The rush in the steel trade outside of war orders is also
 dding to the tax upon railroad facili- ties. Some of the ns-continental lines will benefit by temporary closing of the Panama Canal, as well as by Improvement in the Mexican situation. It is thus as certain as things nun dane can be that the railroads, espe- cially the eastern trunk lines, are al ready entering a new period Of pros perity. This will enapie them to make long-deferred improvements, and to purchase needed additions to rolling stock; at the same time insur- I-o 4-or increasing present dividend rates. For roads which have been en- during unusual stress or going through the pals of reorganization, the relief will b. especially grateful, and such shares are already showing exceptional buoyancy
 St. Outlook Promising.
 In the industrial shares war stockr excepted-the we'll established concerns have exhibited good resisting qualities against reaction. The vari- ous steel shares have of course led in every upward movement. These are now benefting from increased domes- tic orders; and their outlook, in view of better home trade and prospective goverr ment orders arI the prepared ness" movement if decided upon, is particularly promising. It may have been partly and in some cases largely discounted, but the new prosperity of the steel industry has fortunately something more perna' e"t behind it than war contracts It Is based upon the solid growth of the country, plus a mass of accumulated orders arising from a period of discouraging busi- h. ss conditions which are fast melting away Prices are rising rapidly, and the chief danger now s buyers panic, with a rush of orders far be- yond capacity many plants having received orders far ahead for their full output.
 Foreign. Exchange Weakness.
 The weakness in foreign exchange again attracted attention. This of course was due to the ortinued sen sational excess of exports in our foreign trade. This tendency shows no signs of stoppage. For some weeks if not months, it will probably con- tirue: though We cannot indefinitely give credit for the buying of our own goods. Before long we will be obliged to impo,t more merchandise or eX- port less. Europe ic sending us both geld and securities in order to lessen the indebtedness. but in wholly in adequate amounts. To meet imme- diate rqurements only one means of adjustment remains, since a further loan at t.. is time is practicable; and that is the establishme of credits by the Allies with American bankers Negotiations to this end ale already under consideration, and any serious dcrang snert on this account will be prevented, even if it be some months before return movement {" the nor mai really begins. Some idea of the crisis :n the foreign trade situation can Uo ottaired from the facts con- corning transatlantic shipping. Before the war grain was carried to Liver pool for 2Ad per bushel; now the