New Britain herald., 1916-05-20

How is this huge indebtedness being adjusted Credit and loans have been granted upon a gigantic scale, while the return of securities, of which there has been no accurate estimate. must also have been enormous in vol ume; very large sums still being in the hands of local financial institu- tions as collateral. It is well known that American railroads whose wants have lately been put at $1,0OO, 100000 yearly, have made unusually small security issues, for the reason that the ordinary investment demand for rail- road issues seems to have been amply satlsfled by foreign offerings, besides which the high rates now commanded by capital discouraged new applica- tionS. Thus far our merchandise eX- ports show no symptoms of abating. The shipments last week from New York amounted to $57,0O0,000 and since the first of January have reached $906, 6,0O0,0O0, compared with $496, 6,000,000 a year ago. The Brit ish blockade is showing it's effects by practically an entire stoppage of ship ments to the central powers, and also by large dimnution in the exports
 
 central powers. In March the exports to Holland were only $lO,OOO,0OO, d decrease of $13,OO0 900 compared with year ago, and exports to DenmaTk were $5,000,OOO, decrase of $6,O00,- 900, while the exports to Sweden were $4,000,000, decrase of $14, 4,OOO,- 900. In this connection it may be mentioned that the United States is not the only neutral nation that has made big profits out of the war, Ja- pan, Holland, Denmark and Sweden having also benefited largely. a
 The rise in securities outside of mu- niton shares-Whfch are a law unto themselves-has been sensibly check ed by foreign sales in this market and a realization that the present abnor- mal activity in business cannot indef- initely continue. Already there are signs of a halt in the upward move ment of commodities, Bradstreet's in dex number for May 1 being 11.74S5, against 11.759S April 1. The May in dex number shows a rise of over nine teen per cent, compared with a year ago, and has been chiefly due to the advance in metals, chemicals and such as were consumed by the re- uuirementS of war. There are grow ing complaints of the increased costs of doing business, and not few en- terprises have been deferred owing to the high cost of construction. The policy of increased discrimination on the part of bankers and lenders is also exerting a restraining influence upon new business.
 The outlook for the stock market is somewhat confused by numerous cross MunitiOn shares were un- favorably influenced by peace talk' and may be adversely affected \ still further as the time grows near Tor ending hostilities. The weakness Of this class of securities, which ap- sorbed so much speculative attentlon' naturally affected the entire market The most encouraging feature lateE has been the decided strength of tho railroad shares and a few of the bet fer class industrials. For reasons that 1 are well known, railroad shares nave heen thought to be more attractive anu safer as investments, especially q" their financial condition has been l ,nuch improved by liberal galns Ill besides which public hos ti1itv is on the Wane, and the poSSl- hilitv of a strike is viewed with less ,nnrehensiOn than a month ago. There has heen no such imitation in railroad securities as developed in some of the and commodities, the only reason for this being the constant nreseure of foreign liquidation. Peace naturally affect railroad shares favorably inasmuch as ending he war would lessen the necessity or foreien liquidation. There is plenty If capital awaiting investment and railroads are entitled to preference on their intrinsic merits.
 HENRY CLEWS.