New Britain herald., 1916-02-05
CONDITIONS AT HOME
 HIGHLY FAVORABLE
In Contrast With Those Abroad,
 Declares Henry CleWS
Especial to the Herald.)


 of highly conflicting conditions, the war of course affecting every move ment. Peace and prosperity at home rule quotations at one moment; at another war and ruin abroad control. Between the two sets of influences no settled foundation can be found DO reliable plans made; the only course left being to take things as they are day by day.
 Home affairs are eminently satis- factory; politics and international re- lations. Were there no restraints this country would probably be in the midst of a boom never equaled in extent or intensity. We may there fore view the future with relative con- fidence, assured of business activity and prosperity, until somewhat dis tant period of readjustment arrives which must come after the war. Since peace and the mOmentOus changes which will follow, are not yet in sight, we must still be largely affected by conditions at home, which as just said are highly favorable in contrast with those abroad. The big harvest and high prices for all our agricultural! products are making farmers of the West and South wonderfully prOs7 porous. Our mines are busy and ob-,, taining high prices for their products, coal perhaps being the only important exception. Our steel plants as every one knows arc turning out the largest product on record at abnormally high prices being often sold more than six months ahead. Our cotton and woolen mills are likewise enjoying greater activity and good prices; so nd automobile plants, chemical industries etc. The building trades are exper- fencing a most pronounced recovery, and the revival of enterprise in gen. eral is emphasized by the record of new interpretations in the Eastern states which amounted to over $330,- 100000 in January. This was the larg est total for a single month in many years and 300 per cent greater than in January a year ago. Accompanying these movements there has been general increase of wages in the basic industries; advances of 10 per cent. having been often voluntarily granted This means a large increase of purchasing power among tho masses, plenty of employment for labor and relative avoidance of ser ious labor troubles. The only threats in this direction are the demands or miners in the coal regions Which will have to be faced next spring, and those of the railroad men which have already been broached. AS for the railroads their position has been much improved by the revival in traffic and the better rates which many lines are now receiving. Traffic is heavv gross earnings correspond inglv large and net results encOurag~ ing. The result is that current d1Vi- dends are likely to be maintained, few may be increased. as the roads are now better enabled to make in creased outlays for equipment and roadbed There is one other business stimulant that should not be over looked and that is the plethora of loanable funds. Our banks are over burdened with funds which they can not profitably employ. Herein lies one of the greatest advantages; also one of the greatest dangers in the present situation.
 Chief Uncertainty at Home.
 The chief uncertainty at home, out side of our foreign relations, is the continued agitation for preparedness, the prospects of new taxation. the revival of tariff agitation and the launching of the presidential cam- paign which was vigorously opened this week by MT. Wilson.
 No cessation of the war is yet sight; not even the exhaustion on which the end will seemingly depend. The strain upon the financial resour- ces of those involved is beginning to tell. Nearly all the nations which formerly went to London, Paris or D de At the present time Great Britain, France, Russia and Italy are each negotiating for credit or loans aggre- gating several hundred millions. But some of these nations are finding con- siderable difficulty in financing such loans, notwithstanding they would be followed by further large muni- tion orders for American manufac- turers The most important opera ton is another large British loan which may be placed this month, the proceeds of the Anglo-French loan being about exhausted.
 Loans Readily Taken
 What the effect of these operations will be upon the security market, it is difficult to estimate because of the innumerablc cross currents. Ordir- arily it would be depressing. But tho British loan will prevent the sale of mobilized Americans, and may thus discourage the liquidation of our se-' curities privately held abroad. Bank CTS interested in floating the loan are likely to support the general re- serves for available reasons. There first effect will be to stiffen interest rates, and divert capital from home investment into foreign channels. This in turn will place a restraint upon too rapid develoment at home, though nobody enjoys seeing capital diverted from profitable employment on this side of the Atlantic to wastage on the other even if the nrOceedS ara