New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1916-11-25

present statements of leaders are to be
accepted seriously, no time will he lost
in bringing about q serious condition
in railroad operation. This is an un-
fortunate condition of affairs.
1t certainly would be an unpopular
position for labor to assume if it
should openly defy the courts The
railroads are, it Is true, enjoying q
period of prosperity. The owners of
securities Of the roads as we'll as the
employees are entitled to participate In
this Improvement There should
moreover be proper regard for the
credit Of the transportation companies
which need large amounts of new cap
ttal for extensions and improvements
In order that they may conduct ade-
quately their functions as common
carriers. This new capital cannot be
readily secured unless the railroads
themselves can show they are con-
Quoting profitable business and that
the new securities they propose to Of
fer to investors are sound. Any at
tack such as is now threatened by
labor would be discoura ging to pur-
chasers of the older classes of railroad
securities, not to mention investors
in the newer ones. Until this matter
finally is cleared up it is apt to con-
tinue a restraining and unsettling in
huence in stock exchange circles
Unusually heavy foreign demands
that from day to day are appearing
for new capital seem to be finally re-
sulting in an appreciably firmer
money situation. This weeks offer
ings have included s5O,0OO,O0O Rus
sian government loan, a s5,ooo,O0o
loan to China and three loans of 500
10000 each to be divided equally
among the three French cities Bor-
deauX, Marseilles and Lyons. There
are indications, too, that domest in
terests also are making provisions for
new capital, taking advantage of the
abundance of money and credit that is
so clearly following as a result of the
war. There seems reason to believe
however that every effort will be made
on behalf of the British treasury to
prevent substantial advance in
money rates on our side of the At
lantic. British interests lie clearly
against high rates. Any such adj
vance under current conditions would,
for example, be of q discOuraging
character in connection with the fl
nancial plans of the Entente Powers
cabled from London suggest
the early announcem ent of new
1ong-term British war loan which will
present conversion rights for the old
er loans and at the same time will ap-
peal on favorable terms for new capt.
tai. When this loan is to be offered
it will unquestionably be deemed de-
sirable to arrange the money situa-
ton in a comfortable position in Or
der to assure complete success for the
f,~oY oo4; To, -,
a lowering Of the Bank of England
rate and a general easing Of govern
ment rates for exchequer bills and
treasury notes will probably be sug-
gested. Obviously it would create a
difficult problem, threatening the
of sterling exchanges on
our side of the Atlantic, if there
should be any substantial advance in
money rates here at a time of pro-
reduction abroad. To avoid !
such condition it would be necessary |
for the British treasury to send us I
amounts of gold. In fact |
there is excellent auth GRITTY for the |
statement that a renewal Of the in |
ward gold movement which was sus- |
pended after the recent successful |
f1otation of 100000 in United |
Kingdom notes will be resumed at an
early date.
The closing session of the present
congress is to convene on December
5. In view of the uncertainties
abroad, the Mexican troubles, and the
labor and other problems at home
keen interest not unnaturally at
taches to President Wilson's policies
to be enumerated in his address to
the legislature. Until some definite in
dication Of their character is avail
able the uncertainty will be apt to
induce a certain amount of further
restraint in stock exchange operations.
Press advices from Washington speak
Of desire on the part of the president
for the enactment of legislation de-
signed to prevent strikes on railroads
unless definite notice shall have been
given well in advance. This is a
provision that would very likely be
opposed by labor leaders, but is one
that would do much for all interests.
There also is a movement to secure
legislation limiting the exports Of
A m erican food prOductS becauSe Of