The Bridgeport evening farmer., 1916-06-07
(Henry Clews.)

ly satisfactory in many respects, and much more so than stock market movements indicate. There is some disposition to hesitate, owing to high prices, war and political uncertainties, also to closer scrutiny of credit, but this tenden has not thus far become sufficiently pronounced to induce more than a partial slowing down of activity which, taking all things into consid- eration, was somewhat desirable. The war created abnormal conditions in certain directions ,and there was seri- ous danger of reckless expansion and speculation unless some form of re- straint was imposed This developed "a more cautionary spirit among those who assume the initiative; bankers bankers have. become more discrim- mating and merchants are careful not , to overstock, while manufacturers are protecting themselves against oontin- gencfes with more than ordinary con- servatism- In consequence there is a widespread optimism throughout the country mixed with a. strong vein of caution This healthy balance be- tween these two forces is one of the best assurances of continued activity. The prosperity of the United States has undoubtedly been greatly stimu- lated by the war. especially in the east; but this is only a, transitory stimulus which will eventually bring it's own reaction; while far ahead of it in permanent importance is the bet ter sort of prosperity based upon sew eraI years of big crops, especially the harvest of 1915- The American farmer was never so well-to-do as to- day, and west of the Al1eghanies this Is still the vital factor in business, not withstanding the rapid development of industry and trade in keeping with growth of population
 nf in current trade statistics. Bank cIearings last week at leading cities were 5s per cent. ahead of last year; 8 very large gain, even allowing for the effect of high values Railroad earnings for April thus far reported show an increase of over 22 per cent New capital issues in May in the prin- cipaI states are estimated at about s192, 100000, which was nearly dou- ble year ago and the largest May on record except 1910- A feature worth noting is the flood of municipal bond issues, the total for the year 1915 be- ing about $500,o0O, ,00O, or the largest total on record Still another fea- ture is the numerous new petroleum issues the total reported in May alone being $67,o0e, 900. The record of new enterprises for May shows par ticular activity, the total charters of concerns a.hove one million capital be-
 
 1above the same month last year. Divi- :kdend and interest payments in June 5are estimated at s137, 100000, or $17.- GOO, 1000 more than last year. This in crease was largely due to the dividend of $500, 900 on U- s. Steel, which paid nothing year ago. Not a few industrials could have paid large divi- dends, but prudence dictated con- servation lof financial resources, such as reduction of debt, improvement of plant and building up of reserves. During the past year 216 companies ! reported profits of $78O.eo0. .o00,- or $350, ,0o0,0 900 more than year ago; the steel companies showing an in crease of $S7,O00,000, the ammuni- fion companies $66.0O0,0Oo. the cop per concerns s43, 100000 and petroleum companies $3S, ,00,O00- A year ago these companies earned about per cent on their capitalization, while in the year just ended they earned over 13 per cent Building operations would probably be upon a larger scale were 1t not for the high cost of ma teriazs and labor, which delayed many new enterprises. The railroads are also deferring their purchases for i'm prOvements and rolling stock as much ! MB possible for similar reasons The steel industry continues in satisfactory condition and will be fully employed
 
 prices. The one important factor that is not encouraging is the crop outlook, the season being backward and without any bumper crops yet in sight. On the other hand prices are relatively high and with the surplus left over from last year, moderate crops will insure good prices for the farmer.
 The stock market is 1aboring under several adverse conditions and un- able therefore to reflect the favorable business conditions referred to above. Chief of these obstacles are the Presi- dertial campaign, the war, our reIa- tions with Mexico. the influx of securi- ties from abroad and a. somewhat clos CT money market. The political cam padgn is really less exciting than usual and seems to be one of men rather than of issues. The latter promise to be mainly patriotism and prepared ness, with prospect of the tariff com ing into prominence later on- The war goes grirn1y on. There is a, flood of peace talk. but no trustworthy signs of action in that direction thus far. The desire for peace grows in intens- ity, but so does the bitterness of the struggle, which is not likely to end until defeat, actual or potential, brings submission. Mediation just now would be useless and possibly harmful The Mexican situation is again threaten ing and delicate in the extreme. This government is certainly patient anc long suffering under an intolerablt 1nruatfon The pressure of foreigT sales of American securities has cer- tainIy been a depressing factor in this
 market, and but for this obstacle many of our high class issues, espec- iaIIy railroad shares and bonds, would be selling at higher figures American investors have had exceptional op- poPtunitics of buying American in vestments upon favorable terms, and these seem likely to continue under the additional tax of 10 per cent upor the revenue of British holdings o1 Americans. Reliable advices from London intimate that the British gov ernmen4 will not force or weaken the