New Britain herald., 1916-07-29

Russia is not a rich country except in Undeveloped natural resources; but her more wealthy Allies are able to
 give her abundant financial aid, and after the war development on an enormous scale may be expected in Russia, in which the United States will undoubtedly have a share. In all of these countries, therefore, we may safely look for recovery from depres- sion within a reasonable period after the resumption of peace, because these nations possess great genius, high spirit and vast natural resources which are only awaiting new develop ment. All three of these countries will be literally born again, history proving that Great Britain, Germany and France have quickly recovered from struggles quite as severe rela- lively as the present. The same can hardly be said of Austria Hungary the Balkan States or Turkey. These na- tions do not possess the attributes just referred to, and some of them are decadent For them a, longer period of exhaustion is probably in store; and their problems, especially those of the Balkans, will be found far more diffi- cult of adjustment than those of the ether great European powers.
 The striking United States Steel Corporation report for the last quar- ter showing earnings of $S1, ,O00. .000 or over 40 per cent on the common stock, and the successful placing of the 95,O00, 900 French loan were both events of special importance. Neither however, eXerted any effect upon the security markets, which seemed sur prisngly indifferent to such develop- ments Whether this is because tho financial public have become har- Gened to all kinds of sensations, or whether peace prospects, war finance or summer 1anguOr dominate the situation is difficult to say. The stOlid action of Steel after the an nouncement appeared was dsappoint- ing. Earnings were beyond all eXpec- tatiOns. The dividend was less than anticipated, and the management an 1,ounced that big expenditures would be necessary for improvements re- placements, etc. Following the report | heavy selling was noticed, cOnsidera ble | apparently being for inside and ] foreign account. Big profits no longer | exert their former stimulus upon i market values for the reason that they ] have been well discounted in pra actic- l ally all of the steel copper and war | stocks. No investor or SpeculatOr ex- l poets them to continue, and it is | thoroughly understood that a large | portion of these war profits are being | used, not to bulge dividends and in fate stocks as formerly, but for the | more legitimate purpose of retiring obligations, charging off heavy deDre- | Ciation and putting big industrial con- Cerns in a. strong position for facing possible reaction after the war. This is sound finance and should avert or minimize disasters that usually follow in the track of such upheaVals It is m marked contrast with the manipu- Iation that would have accompanied ! such conditions twenty-five years ago.
 General business, though slOWing down somewhat, is fairly active for the season. Steel and muntion plants continue active and further big war orders are in prospect The crop out look is only moderately fair Warm weather has helped corn materially and spring wheat is doing well, while cotton is suffering from too much rain So are other crops in sections. The harvest is approaching. and August is usually a month of deterioration for some important crops. The balance of the season is also somewhat critical for if the moist cool June ana July arc 1OHOWcQ ny q hot, dry August considerable damage will fol- low. Not much enthusiasm can be based on the harvest this year. The local monetary outlook is satisfactory. Bank resources are in good shape, and the financial situation has been greatly strengthened by the influx of about $200, 0,000,000 of gold which began in May. There seems to be a steady selling of foreign holdings of Ameri- l can stocks by the British treasury | While these offerings are readily ab- l sorbed, such a situation prevents any pronounced bull market, and tends to 1 keep fluctuations within safe limits. Needless to say that the big profits l and extra dividends which many in dustrials are making are an impOr- tant factor in the investment situation, such funds going largely into high | erade bonds and strong boxes.
 HENRY CLEWS.