New Britain herald., 1916-03-04
BANKERS ARE READY
 FOR REVERSE DRIFT
Sails Being Set for Situation
 After the War
Especial to the Herald.)

New York, March 4-Domestic
 and foreign politics dominate the
 entire business situation. and these
 again are chiefly influenced by war.
 This week more or less unsettlement prevailed owing to fears of con-
 fict between the president and con-
 gress. President Wilson very pro-
 perly desired to ascertain the willing
 ness or unwillingness of the legis-
 lature to support him in his nego-
 tiations with Germany In a for eign situation of such extreme deli cacy and importance as now exists
 the chief executive could not afford to risk embarrassment from divi- sion of opinion in congress arising from party politics; hence his bold challenge to senate which brought out, as expected, solid support. In it's foreign policy at this critical period, country must be an unuuestioned
 unit, and public opinion should ill unsparing terms condemn taking ad- vantage of international situations for partisan purposes The consequences of such practices are far too dan gerous to permit their indulgence.
 Higher You Go, Harder You Fall.
 What will happen when the war is over cannot be definitely measured. In some quarters there will be vio- lent reactions as soon as remobiliza- tion on a peace basis begins, while in other quarters there will be re- sumption of activities now held in check. Imitation resulting from a plethora of money and huge war purchases has not yet run it's course; and the higher prices go the more severe will be the reaction. The true prevention or offset against these contingencies is a clear appreciation of the inevitable; followed by thor ough preparedness for the event when it arrives. Fortunately, our big industrial leaders and our prominent bankers are keenly alive to the econ- omic dangers of the times. and are setting their course accordingly. The turn, when it comes, will find them entirely ready to take advantage of new conditions. In many cases cur rent large profits are being utilized to wipe out indebtedness and to lower fixed charges; old plants will be writ ten off or new ones created, thus leaving the best managed concerns better off after the war than before it. The whole country should begln at once conserving it's war proflts, not spending waStefully, not swelling dlN- idends unwisely: and not too reckleSS- ly inf1ating security values; but ann ing to strengthen itself for the world struggle for . industrial supremacy which will come upon us irresistibly when the war is over. That struggle will be won by the nation which can produce and distribute the best goods at the lowest prices. This approach ing competition is absolutely unaVoId- a able; we are not y"f prepared, and the higher the lew of prices ard costs maintained now the more diff cult our readjustment and progress will be later on, and the less our ultimate ability to meet the strenuous rivalry with Germany and Great Brit ain that will be forced upon us. The war has not yet approached the end, nor have it's inflationary influences yet exhausted themselves; but pre- for the change that IS should not be confined to in dustrial and financial leaders, and of our resources will be the policy of all prudent business men until the present world chaos begins
 
 come more definite.
 Business Conditions Good.
 General business conditions at home continue highly favorable. Bank clearings are satisfactory, running about 50 per cent. ahead of last year, the greatest activity being in states east of the Alleghenies. No more striking evidence could be found of the violent changes which the great conflict across the sea has wrought on this side of the Atlantic than in our own steel trade, which main -ains unchecked it's headlong and sensational upward movement in prices and production Many mills are sold ahead into 1917 at unheard of profits. The copper industry also shows extreme activity, closely par alleling the course of steel in prices and production. The same is partly rue of other metals. Petroleum is also rising to a sensational level ow- ng to the tremendous demand both at home and abroad for motor pur- poses. In the chemical industry many products have shown spectacu- ar advances as a result of scant sup plies, which can usually be traced to he demands of war. Needless 10 say the securities of these companies nave made large advances and are common favorites in speculation.
 There has been a, wide revival in lew enterprises. The new corporate ssues reported since January l az sregated over $496, 6,OOO,OOO, compared with $391, 100000 last year, an in- ,rease of $105, 5,00o.OOO the year be- ore. These are unusual gains and some deduction must be made for the transformation of capital; but in he main the increase was chiefly in lew concerns in the steel copper, pe- roleum and other industries directly affected by the war. There was also