New Britain herald., 1916-05-27
BUSINESS RESTING
 AFTER GREAT RUSH
Slowing Up Natural Reaction
 From Speed Of Recent Months
Especial to the Herald.)

New York, May 27.-In various di- rectiOns there are symptoms of slow ing down in business The most sig nifcant incentive to caution mas been the late rise in commodities and wages, which has so increased the cost of doing business as to impose a wide spread check upon new enterprise Tn brief the rise seems to have been oVerdone for the time being at least, and reactionary tendencies are already at work. This is noticeable even in the iron trade, which, though hold ing orders extending into 1917, finds new demands less urgent and prices in some instances decidedly so1ter when compared with conditions month ago. New munitions orders are of course coming less freely, ana high costs are impeding new constfuc- ton work; while the railroads are confning their outlays to necessary replenishment.
 In no direction in there any marked development of new railroad con- struction; a fact which is somewhat remarka ble in view of the much inn proved state of affairs in the railroad world. Tn the drug and chemical trade there is also a decided reac-
 
 ten. industry profted much by the war; the demand for explosives and medical supplies causing prices for many articles to soar several hundred per cent. Now that the reaction Is on, precipitous declines have occurred, causing more or less unsettlement in the entire industry. Tn the dry goods and grocery trades there is also a sIackening of demand, though no gen. eral weakness of prices and no gen. eral unsettlement. In these lines of trade there is a spirit Of confidence and values are well maintained.
 Outside of war influences the crop situation is the most unsatisfa ctory feature. No serious damage is re- ported in any section, but the spring has been cold and wet, consequently most of the cereal crops are back ward and less promising than a year ago. On the other hand all fruit crops are far above the average in conditions; peaches, which promise poor yield, being the only exception. Cotton is about two weeks backward, but condition is good and acreage, ac- cording to the National Ginners' As sociation estimate, is nearly 13 per cent larger than year ago. few warm days will compensate for all present draw backs. Bank clearings, though still running over 40 per cent. ahead of last year, are not showing such big gains as in the first three or four months of the current year. Railroad earnings show excellent re- suits; gross results reported in April thus far being more than 20 per cent. ahead of last year. April net returns are also very satisfactory if the lat est reports of Union Pacific and Atchi- son are any criterion. Traffic on some of the Western lines has been remark ably heavy which doubtless will be a factor favorable to an easier adjust ment of the railroad labor problem. The net earnings of American rail- roads for the nine months ended March 31 were $899, 000, 900, compared with $65O,OOO,00O the same time last year, an increase of nearly $25O,0OO.- 900. Prosperity such as this, if sus- tained, should mean not only better wages to railroad labor but better re- turns to stockholders. The notice able public hostility to railroads is also disappearing, and these favorable developm ents would undoubtedly have been reflected in a more general ad- vance in the stock market had it not been for the pressure of foreign hold ings of American stocks. The proposal of the British government for m ad- djtional tax of 10 per cent. upon American stocks will stimulate for eign sales and tend to weaken this market.
 The war has been a less potent fac-