New Britain herald., 1916-01-22
GENERAL BUSINESS
 IS FAIRLY ACTIVE
Present Prosperity Due More to Rich Harvest Than War Orders
Especial to the TIera1d.)

1 noticeable in December has contin-
 ued thus far throughout January. 1 The principal reasons were two-fold: 1 first, the wise restraint upon specula- tion imposed by bankers in order to avoid dangerous imitation, and, sec ond, the continued influx of securi- ties from abroad which fully taxed our absorbing powers. The necessity for checking hazardous advances i'l the war industrials was beyond dis pute, especially in those solely de- voted to munitions, whose values had in some instances risen utterly beyond reason. Weeks ago the rush of war orders moderated, because the demand was largely satisfied by early orders, and the belligerents them selves are now equipped for produc- tion at much lower prices than Amer ican makers would care to accept. As to the return of American securities, that has proceeded upon an 1n- creaslng sca4a ever since announce ment of the British mobilization plan; each mail steamer bringing large l quantities of former foreign holdings, generally sold on private account. How 1 long this influx will continue is inn possible to determine; but the control of selling on British account is so highly concentrated that the market l for A1Aer1cans will be thoroughly stabilized, and no sacrifices need he l expected by those in control of Brit l ish holdings. The most significant
 result of this movement will be the 1 permanent decline of London as a l market for American shares, for the bulk of those returned will never go
 back. The United States will, in all l probability, permanently retain the l railroad bonds and stocks purchased l from Great Britain, Germany and 1 Holland, also a large portion of the l ind c-'trials which are being returned This does not mean that foreign cap ital will permanently desert the United
 States, but it will be a long period l before Europe has money to spare for investment here, and it is ques- l tonable if it will ever come with the 1 same freedom as in the past. As a
 result, much of the interest and divi- ! dends forme merly sent abroad will stay 1 here, and be utilized for home develop
 ment. It should be borne in mind that this homeward movement of 1 American investments occurs at a ] time when we are turning our atten-
 tion to opportunities abroad We arc l displaying great anxiety for a larger
 
 l must be prepared to buy as we'll as
 sell, to lend and invest our funds
 abroad much more freely than we
 ever contemplated before. The United States has met a turning point in it's 1 career, the importance of which is not yet sufficiently appreciated by Ameri- 1 can investors. This turn in our for | eign development was bound under l any circum stances to occur in due | course of time. but the war mater | tally hastened the date and greatly en- 1 larged the opportunity. So, if New
 York desires to raise it's prestige as
 a foreign financial center, it must
 prepare to take a more active in- 1 terest in foreign investm ents, in l foreign affairs and in cu1tivating for 1 eign trade; not by force or antagon-
 ism, but by creating friendly and
 mutually profitable interchanges.
 Hesitation Encouraged.
 Hesitation in the stock market was
 further encouraged by threatened diff
 faculties with Mexico and the fear of l prolongation of the war, and some ! disturbing discussion may also be precipitated should England declare a blockade.
 Another factor which prevents 2
 full revival of confidence is the 1ln-
 certainty of the action of congress in | regard to Mexico, preparedness, pub
 lie revenue, shipping and other legis- 1 lation. So far, however, it must be l acknowledged that congress has kept
 remarkably cool, considering the in-
 tensity of present day problems; and
 up to the present time the adminis- ] tration has experienced little embar- l rassment from congressional opposi- ton.
 General Business Active.
 1 General business continues fairly
 active and satisfactory The revival
 which began in Oct and November 1 still continues. It is illustrated by 1 Extraordinary activity in the steel in- 1 dustry, which seems unchecked by 1 the prolonged rise in prices. Con-
 corning the universal prosperity of ] this industry, it is unnecessary to re- peat familiar facts Such of the regular industrials as are in the way of securing war contracts, continue ! making large profits and speculation
 in these shows considerable activity. The railroad situation is steadily inn proving in various respects. and the
 freight embargo is in a fair way of
 being broken. Forty-six roads re- ported earnings of sS4.OO0.OOO in | December an increase of S2OO0O, 900
 over last year. The disposition to af- ford the railroads fair play on the | part of the public appears to be increasing, and this fact in connec- ton with improved net earnings has l materially stimulated the demand for better class railroad shares and great ] ly facilitated new financing. For near 1 ly all high grade securities, especially l bonds, there has been a good invest ment demand. and new home issues of 1 desirable character have been read fly taken, notwithstanding the large