New Britain herald., 1916-10-07
Henry CZews
 Weekly Zetter

l New York, Oct. 7,-Another week | or buoyancy has been experienced on
 the stock market and prices have l risen to still higher abnormal levels l Stock Exchange transactions, which 1 are averaging a million shares per 1 day, do not begin to record the total
 activities of this market-the outside l dealings having shown enormous ex- panSlOn, not to speak of the extra ordinary investm ents in foreign gov- | ernment bonds and securities. The | annual report of the New York Clear | ing House showed gross c1earings for | the year ending Septem Der 30 of 147 l billions, an increase of 57 billions over | last year. Conditions favor contin- l ued activity in the security markets. Industrial concerns are now earning such big profits as to often make cur
 rent quotations for many of them ap pear still comparatively low. This is especially true of the steel com panies' stocks, which show profits ranging from 20 per cent. to 60 per cont Many other industrials are also reporting very large gains in business, much of which is due to
 the prevailing high prices for all com
 modities. The steel companies are overwhelmed with orders some ex-
 tending far into 1918. Railroads are
 placing liberal contracts for cars, To-
 com otives and rails at high prices
 without hesitation. Our exports of
 steel in August again touched a high
 record.
 The activity and advance of in-
 dustrials which has long been con-
 spicuous is now extending to the rail-
 1c h 0T-n To
 strength in consequence of increased
 earnings. The remarkable annual re-
 port of Union Pacific showed the
 largest earnings in it's history, in
 c1uding income from investm ents, or
 over Is per cent. on stock. against
 about il per cent. year ago. Still
 better evidence of railroad prosperity,
 however, was the August report of
 the Interstate Commerce Commission,
 which gave net earnings of 126 lines
 at $82,0O0,000, compared with $65,-
 OOO,OO a year ago. The nations gen.
 eral trade is active. War imitation is
 the chief stimulus. The extraordinary
 demand for many commodities, the
 actual scarcity of others, the flood of
 gold, the Federal Reserve system and
 the abundance of credit which these
 last two factors provide are giving an
 irresistible upward impetus to values
 New profits thus accrued naturally
 seek investment and stimulate new enterprise. Speculation is highly ex- cited by such conditions, this being proved by daily observation and the appearance of many new operators from all parts of the country. Here and there may be symptoms of over- buying and fotations of a question:
 ~11 of I, So1, Q ooT that in view of present high prices, 1 purchases whether for investment or speculation, should be made with in creasing discrimination, favoring the i better grade securities which have not 1 yet had their full rise.
 It is quite evident, however, that l the present movement of abnormal 1 activity has not yet run it's course All indications point to unexampled 1 industrial and mmercial activity for some months to come. Of course much depends upon the war, the early of which would force a temporary setback and readjust- ment at this center Fortunately, present prosperity of the United States is based upon strong founda- tions, and is not entirely dependent upon continuance of the deplorable destruction in Europe. At present there are no signs of an early cessa- lion of the war, and the best opinion is that it will continue at least until next spring, if not longer.
 The two most striking incidents Of the war this week were Lloyd Georges but very candid notice to neutra1s, Hands off, and Lord Brvce's sane and high-minded advice against "A war of trade to folloW }. war of arms" It will be well not to take too seriously the talk Of ' tariff war following the war. That there will be strenuous international when the struggle is over goes without saying; that Germany will endeavor to regain lost markets $ to be expected, but that she will food the world with cheap goods is silly apprehension, and that the com nercial nations of the world can ex- oand their commerce by raising pro- aibitive tariff walls is too absurd to receive serious consideration While he bitterness of war is so intense, re- taliaton talk is natural; but com nerce and self-intcrest are great | oeacemakers, and neither can per prosper in any direction where enmity rules. If retaliatory ,ariffs are initiated after the war, hey will only do harm and their life will be precarious. Great Britain cannot prosper under a tariff on raw or foodstuffs. Should she impose any tariff on manufactured lrticles which is doubtful, it will be nore for purposes of revenue than or protection as a policy. British in foreign trade after the. var will probably make great strides; while the United States will certainly ake the second place, and in some instances will undoubtedly be a lead