New Britain herald., 1916-08-19
Henry Clews Weekly Letter

' forts of the large financial interests who as underwriters have such a prac- tlcal incentive to make it a success. The efforts of such interests under these circumstances are very apt to be encouraging and promote a favorable speculative and investment atmOs- phere in the general market for se curites
 The remainder of the $3OO,O0O, ,OO0 collateral in the new British issue will consist in round numbers of $100, ,000,- 900 of Canadian government and Ca nadian railway bonds, and an addition al $1O0, ,O0O,0 900 will take the form of bonds, and other obligations of Argen- tina, Chile, Norway, Sweden, Switzor- land, Denmark and Holland. Aside from the similar class of securities contained in the collateral for the more recent $10O, ,0O0, coo French loan, the distribution of bonds of foreign governments and of bonds represent ing foreign activities, is a new and important development for American investors. It is, however, merely be- ginning that means a further active broadening of New York as world market for finance. Other loans are to be raised in our own country by the entente allies. Their number and volume will be limited only by the dur ation of the destructive conflict and by the final volume of the supply available of American capital. A clear indication of this is contained in the revision of the British chancellOrs mobilization plan. As modified, the English treasury is to receive on de- pOsit for a. period of five years a new list embracing securities 5000, ,000,O ,OO0 in value, the list composing seventy h-grade foreign bonds, including among others those that are to con- stitute part of the collateral for the new loan that has just been arranged here. Thus it is obvious that the Brit iSh government has ample collateral readily available to seek additional financial accOmm OdatiOn In America
 Henceforvard, financially speaking, we must look out and not in, and ac- custom ourselves to larger transactions than have hitherto been the rule. To us the s25O, ,0OO,O 900 loan appears to be a matter of very considerable import ance, yet is small compared with Great Britain's total borrowings which, since the war, have reached nearly $15, O,000. The loan re- gently granted in New York would only pay Britain's war expenses for about eight days. Instead of thinking in millions, we are obliged to think in billions.
 Following the recent rapid rise in few shares some reaction resulting from prOfit-taking may occur, but the general undertone is good and based upon general industrial prosperity, which seems quite adequate to offset poor harvest. The general results in crop yield, not value, are expected to be about ten per cent. below last year; and yet in spite of this draw back the railroads are anticipating a car famine owing to the tremendous pressure of industrial traffic. With big exports ahead, active business east of the Mississippi, easy money every where and generally sound business conditions there is little to interfere with stock exchange activity. The la Dor situation is still regarded as Seri- Ous, and much will depend upon tho outcome of the presidents efforts to prevent Q railroad srlIe
 HENRY CLEWS.