New Britain herald., 1916-09-18
STYLES FOR FALL Come and See Them!

1 since the beginning of Nav that if is 1 ol1hcult to realize the object unless it oe d matter of prudence to have it l lere as safeguard against the acci- oehtS or war. Or it may be sent hera ! Aoi US erect upon the domestic money 1 0iIud'lon as well as upon the stabili- ] Za'lon ot the sterling exchanges Gold l i0 Ill Such active supply that it is not ileeued on any basis of nearly normal demands. The $25O,OOO,OOO, repre- sented by the proceeds of the latest British loan, have become available and are, so far as their buying power IS concerned, the equivalent of gold The gold, however, will unquestiOn- ably, assure a continuance of easy money conditions on this side of the Atlantlc- conditions that are especial Iy necessary to British finance at the present moment. British short term borrowing has assumed such large
 proportions Ghere are, for instance
 no less than f9OO,00O, in short term treasury bills outstanding) that some more permanent form of bor- rowing must sooner or later be entered upon, such for instance as a new long term war loan. It would not be in keeping with their skillful financial management of the war if the English authorities were to offer such long term loan on a London money Situa-
 tiOn indicated by a. six per cent. Bank of England rate. But if rates are
 lowered the English treasury is Ut
 once confronted With the fact that
 American financial institutions and in
 dividuals who have to deposit in Lon
 don at lucrative rates large sums will
 not unnaturally, withdraw these funds
 in the event of rates at, home proving
 equally as attractive. Such a with draWal of funds could hardly fail to
 influence unfavOrably the sterling eX-
 change and create an undeSirab ble sit
 uatiOn. Hence if rates in London
 are to be lowered the present differ
 ence that exists between London and
 New York rates must in some measures
 be maintained. In these circumstances
 the phenomenal importation of gold
 that is taking place would not be
 difficult to understand, especially when
 it is recalled that under tho new Fed
 eral reserve banking law banks are
 obligated to carry a reserve of only
 eighteen per cent. deposits as against
 twenty-five per cent. under the for mer national banking law, thus ma]<- ing the lOaning ability of the banks upon gold as. reserve virtually skiold against fOurfOld as formerly was the case.
 Trade and industrial conditions con- tinue active. Leading steel authorities have been quoted in newspaper inter 1 views as declaring the situation unpre- cedentedlv active and as, expecting a full continuance of current conditions for at least many months to come. | Bank exchanges bear out these optirl- istc statements. For the month of | August in nearly all American centers l high record totals have been CStab- T lished the total for the entire country, l comparing with a year ago, showing ! an increase of thirty-eight per cent, 1 while for the eight months of the cal l endar year 1916 a gain of forty-one 1 per cent. over 1915 is shown and for ty-four and one-half per cent. over 1914. The same general trend of tes- timonv is contained in the latest re- ports of railroad earnings. As com- pared with the first six months of ] 1915 gross earnings of American roads for tie first half of 1916 increased no less than $32S, 1000, equivalent to twenty three per cent, while the net earnings increased $166, 161,0 900, or fOrty-twO per cent. Our country un- uuestiOna bIv is passing through a per iod of imitation that seems destined to increase substantially before the final check comes. The foreign liquidation seems to have been responsible for some measure of the failure of securi- ties to join fully in this admitted in nation The current wave of enthusi asm suggests opportunities for alert operators. There seems no doubt that important financial interests recently have been heavy buyers and are in clinp5 o SnnnOrt the market. l