The Bridgeport evening farmer., 1916-08-01
-. Finance. Real Estate Insurance =.
World of Finance

slightly hurt by the war. She IS too vast, and has too large populatlon to feel the conflict very seriously. Rus- sa is not a rich country except in un- developed natural resources; but her more wealthy Allies are able to give her abundant financial aid, and after the war development on an enormous scle may be expected in Russia, in which the United States will undoubt- edly have a share. In all of these countries, therefore, we may safely look for a recovery from depression within a reasonable period after the resumption of peace, because these nations possess great genius, high spir- it and vast natural resources which are only awaiting new development. All three of these countries will be literlly born again, history proving that Great Britain, Germany and France have quickly recovered from struggles quite as severe relatively as the present. The same can hardly be said of Austria Hungary, the Balkan States or Turkey. These nations do not posses the attributes just referred to, and some of them are decadent. For them longer period of exhaus- ton is probably in store; and their problems, especially those of the Bal kans, will be found far more difficult of adjustment than those of the other great European powers.
 The striking United States Steel Cor poration report for the last quarter showing earnings of $S1,000,000 or over 40 per cent. on the common stock and the successful placing of the $95,- 000,0O0 French loan were both events of special importance. Neither, how ever, exerted any effect upon the se- curity markets, which seemed sur- prisingly indifferent to such develop ments. Whether this is because the financial public have become harden ed to all kinds of sensations, or wheth- CT peace prospects, war finance or sumner 1anguor dominate the situa- tion is difficult to say. The sto1id ac- tion of Steel after the announcement appeared was disappointing. Earn ings were beyond all expectations. The dividend was less than anticipated, and the management announced that big expenditures would be necessary for improvements, replacements, etc. Following the report, heavy selling was noticed, considerable apparently being for inside and foreign account. Big profits no longer exert their for mer stimulus upon market values for the reason that they have been well discontinued practically in all of the steel, copper and war stocks No in- vestor or speculator expects them to continue, and it is thoroughly under stood that large portion of these war profits are being used, not to bulge dividends and inflate stocks as for merly, but for the more legitimate purpose of retiring obligations, charg- hing off heavy depreciation and putting big industrial concerns in strong position for facing possible reaction | after the war. This is sound finance and should avert or minimize disasters that usually follow in the track of | such upheavals. It is in marked con- trast with the manipulation that would have accompanied such conditions 25 years ago.
 General business, though slowing down somewhat, is fairly active for the season. Steel and munition plants continue active and further big war orders are in prospect. The crop out look is only moderately fair. Warm weather has helped corn materially and spring wheat> is doing well, while cotton is suffering from too much rain So are other crops in sections. The harvest is approaching, and August is usually a month of deterioration fo, some important crops. The balance of the season is also somewhat critic. al; for if the moist, cool June and July are followed by hot, dry August considerable damage will follow. No, much enthusiasm can be based on the harvest this year. The local monetar, outlook is satisfactory. Bank resour. ces arei n good shape, and the finan. cial situation has been greatly strengthened by the influx of about
 $200, 100000 of gold which began 1T May. There seems to be a steady sell. ing of foreign holdings of American stocks by the British Treasury. While these offerings are readily absorbed such a situation prevents any pro.
 nounced bull market, and tends tc
 keep fluctuations. within safe limits
 Needeless to say that the big profit. and extra dividends which many in.
 dustrials are making are an import
 ant factor in the investment situation
 such funds going largely into higf
 grade bonds and strong boxes.