New Britain herald., 1916-04-15
NO TIME TO BAIT THEADM|N|STRATION
Henry CleWs Advises Against En-
 barrassing the President
Especial to the Herald.)

1 ening condition of our relations with uncertainty as to their outcome, 1 effectually controlled stock exchange 1 transactions. All interests are tense l ly hoping for a satisfactory solution of present differences. The country l is passing through one of the most | critical periods of it's history, and | the administration, whatever it's | shortcomings may have been, is en- l titled to loyal and patriotic support in it's foreign policies. It is un- | reasonable, unpatriotic and extremely dangerous to embarrass the president by harsh criticisms and antagonisms for political purposes, which should not at this time become a factor of our foreign policy.
 Reports from all parts of the country indicate sustained business activity. The steel industry continues to lead, the home demand being the chief source of activity. Railroads have been very large purchasers of both equipment and rails, orders for the latter having engaged the full capacity of some mills until the middle of 1917 and later The re- vival of building in nearly all the leading cities has also served to strengthen the demand for construc- tive materials; new construction Icing reported IS per cent ahead of fast year. Prices of steel are now so high that the upward movement appears to have been pushed to the limit, and in many instances further new business has been deferred be- cause costs become prohibitive. It is possible that the steel industry is facing a temporary and advisable halt; yet excellent profits are as- sured for some time to come by the heavy contracts now held at high prices. As for the more distant future, the outlook is also promising. Peace would bring a cessation of foreign war orders, but the impor- tance of these has been exaggerated and are not a large factor when com pared with domestic orders. More over, when peace does come war orders will be supplanted by orders for reconstruction work in the devas- lated districts. The mills of France and Belgium will need machinery promptly to take the place of that destroyed or removed by war; while equipment for railroads, bridges etc, in considerable volume will also be promptly needed; more promptly than can be satisfied by their own i'm paired facilities. Furthermore, our export trade is making growing de- mands upon domestic mills, while the preparedness movement in this country will undoubtedly stimulate activity in our shipbuilding ordnance and munition establishments
 Imitation in Values.
 One of the most serious effects of the war is it's inflatory effect upon values especially of commodities. Sauerbecks London price index pub lished on April l. stands at 1904, compared with S7.9 just before the war. The rise in March was 2.S, showing a small decline i'll vegetable foods but a considerable rise in meats The largest advances were in minerals and the smallest in textiles. These changes correspond somewhat with our own fluctuations, though more acute owing to the nearer proximity of London to the war. The effect of these high prices is now being felt in rising costs for all lines of business, so that what with exces- sive prices for raw materials, ad- vancing wages. higher taxes, etc, it is plain that the extraordinary profits which some industrials have made are only temporary and cannot be in- definitely maintained. Ordinarily the activity which this country is now experiencing might be expected to continue until credit became over expanded or buying power exhausted; neither of which contingencies is in sight The masses in the United States are still prosperous. labor being well employed at good wages in the East, while in the West the farmer continues to enjoy the pro- ceeds of good prices for his pro- ducts. AS for the credit situation, that seems exceptionally sound. The national banks at the last call showed resources of s13,83S, 100000, or 20 per cent ahead of last year; deposits of s10,79O, 100000, an increase of 25 per cent. in a year, and loans an in crease of $99O,OOO,00O. The tottal re- serves of the national banks were s2,287,OOO,OOO, or $993. 3.000,O0O in ex- cess of legal requirements, and s100,- COoOOO larger than any previous surplus reserve. Comptroller Will Hams is authority for the statement that the national banks of the country have never been in a stronger position than they are at this time"
 Spirit of Caution Prevails.
 The cautionary spirit developed in business about a month ago is still prevalent, as is proved in bank blearings, which are running about 30 per cent to 40 per cent ahead of last year; a smaller rate than pre- vailed in the first two months of the current year. Nevertheless, the volume of business is still very large, making full allowance for inflated