New Britain herald., 1916-07-15
CONFIDENCE NOTE
 IN BUSINESS WORLD
Based on Development Of Coun-
 try's Resources, Says CIeWs
Especial to the Hera1d.j

New York, July 15.-The most
 significant event of the week was the
 rise of the Bank of England rate from
 to per cent. This is the first ad-
 vance since August, 1914, and was
 evidently intended as protective
 measure against. the possibility of
 higher interest rates and adverse
 sterhng exchange in New York Next
 m Importance came the announce
 ment of new s1oo,o0O,OOO French 1 loan on a 1-2 per cent. basis.
 1 Reserves of the New York banks
 declined from over $2o0,oO0,Ooo since | last autumn to about $35,OOO,OOO last
 week the banks gained considerably banking system was 1naugurated This
 wee kthe banks gained considerably l through receipts from the interest, the | federal reserve operations and sub treasury pawn ents In view of the | many prospective demands upon American banking resources the money market is an interesting sit uation. The usual crop demands will soon assert themselces, but will be
 easily cared for and are of minor inn portance compared with other inn
 minent demands. War has made New York the leading open money
 market of the world. It is the only
 market where all nationalities can freely come. Hence the belligerents, and especially the Allies, have done considerable proportion of their financing here. The placing of huge
 intuition orders in this country has also contributed enormously to the
 financial prestige of New York.
 At this center the fiscal arrange ments of the Allies were usually made and carried out; from this port the
 bulk of U. $. exports were shipped, and in this market the credits loans and bond issues connected with the war were necessarily made. Hither
 car1e the immense quantities of gold
 and securities sent to help payments for munitions, and here further big trarsa ctions of the same sort will be consummated at least as long as the war continues. The expected French loan has already been announced. An other British loan, possibly in the form of short term notes. IS almost inevitable; while Russia, China, Can ada and Argentina are all knocking at our bank doors for financial aid which will very likely be rendered. Big demands are evidently pressing upon our banking resources, which are fortunately ample. Wet the diffi- Culties are sufficient to call for Skillful handling on part of our financiers; for our banking institutions have fre- quently all the loans outstanding up on foreign owned American collateral that they desire. Tn the last few weeks about S1OO0OO,0OO in American securities and s15O0O0,O ,OOO gold have been imported in payment for munl- tions and to assist in keeping down interest rates, which if materially higher would operate adversely upon sterling exchange and render British operations still more costly. At this iuncture come in the operations of the United States Treasury which is jst now enjoying unusually large revenues it's receipts in June being over $16O,000,00O or $40,OO0,000 in excess of last year. During the same month receipts exceeded d1sburse- ments by s1O3,0o0. .000-a very satis- factory condition from some points of view. But passage in the house of the new bill intended to increase public revenue about s20O. 1000. 900 to meet preparedness plans makes 1t appear that excessive taxation and excessive
 
 new era of national extravaganza.
 Still another new question affecting the money market has been intro i duced by action of the treasury in de- l nositing it's funds with the federal re- l serve banks, instead of with national 1 banks which were obliged to furnish l collateral for such deposits. The gov ! ernment has recently transferred large 1 sums from the national banks to the l federal reserve banks and this has had considerable to do with the shrinkage in reserves at this center.
 Foreign Trade.
 Our foreign trade has surp:A 7ed the ID ost optimistic expectations, the total for the fiscal year ending in June being s6,O00,0OO, ,O00 This is much the largest total on record; and must be chiefly attributed to the war Ex- ports amounted to s4,345, 900, 900 and imports $2,165, 100000. The principal articles of exports were steel products SIS millions, nearly treble last year; explosives, 473 millions, tenfold gain; cotton, 370 millions; breadstuffs, 31 millions, meats 270 millions; coffee, ITO millions; mineral oils. 165 millions; brass, 126 millions; autos, 123 millions; chemicals, 123 millions, and horses, 73 millions. Tn imports the principal amounts were fbers, 131 copper, 52 millions; wood ctures, 51 millions; tin, 48 and cotton manufactures, AZ millions. These are marvellous re- suits, and decided reactions may fol- ow the arrival of peace. Of course he impaired buying power of Europe will act adversely upon articles of ex- port; but it must be remembered that he bulk of our exports is made up of '. necessities such as food products, cot