The Bridgeport evening farmer., 1916-07-25
I-s Finance, Real Estate and Insurance :.
of Finance
tHenrx Clews Weekly Lctter.l
M as L-

(Henry Clews Weekly Lctter.)
 The most influential factor in se- curity markets at present Is the war financing of the Allies. A new s10O,- OO0. 900 French loan has been suc- cessfully launched through specially organised corporation, and being an investment promises to find ready distribution It is expected to be followed by a huge British war credit grant; the amou<t named~be- ing $1,5O0 0.000, ,000 and bringing the British total for the war up to over $13. .OOO, ,0oO, ,OQO. How long Great Britain will have to stand this terrific strain no. one knows, but her re- sources are so vast that the end is by. no means yet in sight. Just now It looks as if the war will end before any financial crisis can possibly occur. Germany is also facing the drain far better than anticipated; the real test there being deferred until after the war. A portion of the British loan will most likely be offered in this country when issued; and other ior- eign loans will probably follow.
 A good undertone exists in the stock market. based largely upon ex-
 cellent home conditions. Trade IS very active, considering this IS the
 season of midsummer quiet; and, bank clearings are still running over
 40 per cent. ahead of last year, the gains being well. distributed through out the country. A satisfactory fea- turs is the reactionary tendency of suEh commodities as had risen un- duly high. owing to war demands and actual scafcity These declines come
 not SO s.ffiuch from cessation of de-
 mand ssSf5f61a roduction overriding
 consunisri r} iS sife principal reac-
 tions haVe been in metals and chem
 icals which were unduly inflated by
 war. Breadstuffs are also lower, thonSg hidess leather and fruit are at about top ,figures- Bradstreets Index figure stood at 1f.5294 July l; a. de- Icline ofSs1.3 per cent. compared with |a | mont ad P per cent: with April |1 tAe TT III ~ point Erop fe- ports afe nor hcouraging Higher |temperatures materially benefited corn, which now promises a good crop. wheat also improved, slightly, but no lone expects big yield of wheat this year. Cotton reports were more Ia lvorable despite damage from floods in the South Upon the whole the crop joutlook is satisfactory, there being no great gains and no serious deficiencies. In ihddStHial circles no noticeable ces- satio1i of action can be observed. The steel tradeais still running at practically top speed, and profits of the big steel lkorporation are reported at the marvel ous rate of 30 per cent. for the last quarter. Of course such abnormal re- suits cannot last, and it is worthy of note that this unexampled prosperity has not been made the basis of any speculative orgies, as was the former clstom. sRmuch for the better standards of2c0nduct which prevail in Wall. Street. than formerly Railroad earnings abundantly prove trade activ- ity. June reports indicated an in crease of 25 per cent over last year, |, and this rate promisessto continue du- ring July. While a portion of this 1 increase is attributable to better rates, l the larger volume of traffic is the main and most welcome factor. The quesi ton of a big railroad strike must soon be decided, as the men are now voting | upon the question of giving their lead ers the right to order a strike to en- l forcsc their demands. The seriousness l of the situation is so great that every | effort will be made to avert so grave a l public inconvenience President Will l son has been asked to interfere, and l hope remains that sober second 1 thought on both sides will prevent 8 I rupture. Nevertheless this issue will l be an important factor in the early fu- A d. <~F -fr i, 1,< l improved situation in real estate. Mort I ego to A @5 per cent. Vacant of < flee buildings have been largely filled 1 often at lower rates: money is onct 1 nicre seeking investment in this direc 1 ton; dealings are on a more active 4 scale; building permits are increasing and the only obstacle to further activ fty is the high cost of building du, ito dear materials and the scarcity O. labor. s
 One of the sunrecognized marvel
 of the present war is the financing done by the British Government
 Nothing approaching it has. ever bee, witnessed or even conceived possible Chancellor McKenna recently sait
 war was costing Britain $30, 1000, %! daily, which is at the rate of over II billions a year. Such figures stagge
 the mind; and yet, as just said, the ent
 of these resources are not yet in sight and the strain though terrific is born, with relative ease. Britain's finan ella skill and strength has been chief lay displayed in her control of foreigl
 exchange and the ability to pay he
 stupendous war bills It is over year since the British Government is
 sued any permanent loan, having pait
 expenses out of current taxes, treasur,
 bills and short term obligations. Tn
 chief sources of British financia
 strength have been huge foreign invest
 ments, unexAmr1ed banking resource and control of a vast supply of gol,
 and high grade securities. Grea
 Britain has sent about $200, ,00o, ,o50 o
 gold towards payment for her pur
 chases in lis country. She has als
 sent over, American securities estimat
 ed at about s1.soo,ooo. .ooo; so that he
 share of payment for the $2,165.000.
 000. exceas exports in the fiscal yea
 just closed must be closely settled.
 is of course well known that Britain
 has borrowed large sums in this mar
 ket upon foreign owned America'
 any unnecessary liquidation of sucl
 holdings. But her borrowing capacit
 does not end here by any means
 Great Britain owns $15,00O, ,0O0, ,00
 foreign securities outside of Americans