New Britain herald., 1916-04-01

3TlCh
 Pine, yellow ..... 25.O0 3o.oo
 Since the above figures were com piled. prices have in many instances risen still higher No industry. has en- ixlyed more intense activity and pros neritv than steel Production of pig iron has about doubled last years hg- ures and prices have risen to poln1 affording extraordinary proflts, WHICH will continue until present contractS are completed Building is about Zo per cent ahead of last year in spite of dear materials Textiles have been very active cotton goods often adVan- cing 20 to 30 per cent. Woolens have scored large advances and in some Instances linens have risen lOO per cent, owing to the embargo. Railroad earnings have been gaining at the rate of 12 to 20 per cent for a number of weeks past. Our foreign trade has been growing by leaps and bounds, particularly in exports. Such facts as these can be cited indefinitely to prove the abnormal activity and prosperity of the United States; chiefly the result of the confiagration, abroad, although last years good harvest las been an important contributing factor.
 Such conditions cannot last. They will bring their own reaction without fail and it is only a matter of time when that reaction begins. The longer & is postponed and the greater our profits out of the misfortunes of ynthers, the worse will be the reaction when it arrives. Imitation always ac- sSeonlpanies war, and in our case lnfia- Ation has been materially aided by our S~hiS- gold supply and the new Federal Reserve law which greatly facilitated the enormous expansion of credit The Phenomenal expansion of plans is lnighly suggestive of caution, especial ly as the effect of high prices in retail distribution is only just beginning to be felt. Much larger sums, of money will be required to carry retail mer- ehandise stocks, and high prices will @lnevitably tend to restrict consump- ion; though this may be temporarily offset by labor being generally well { employed at good wages-and in many instances at very high wages The conclusion cannot be avoided that these conditions are highly unstable. When war ends a violent readjustment will be inevitable. old conditions will not be restored. A long period of un- certainty will have to be squarely laced This country will then find
 tself upon a high cost of production oasis: wages and comm oditieS will be higher here than abroad; our capacity .or turning out all kinds of merchan- 1ise will be at high water mark; Europe will need our help in rebuild
 ng; she will be too poor to pay our nigh prices longer than necessary; the oelligerents will supply themselves at . nome as far as possible, and whether ;" we like it or not, this country with few exceptions will have to endure period of dullness and reaction when peace ultimately comes. That result, much as it is desired, is not close at hand; and the best way to anticipate his reaction is to take time by the .orelock and apply the brakes upon he Irrational tendencies connected with the present upward movement A before they get beyond control. Thus i've may regulate the situation; secure II reasonable profits, and moderate 1T hot avert the i'll consequences that Eou1d follow an unbridled continuance of present Unbalanced activities. Re- peated warnings have already been lS- sued from banking circles, and not @ few of our industrial leaders have al- so placed themselves on record D against the wild excesses which have lately been indulged in; so that those who do not take heed will have them selves to blame. These are not times for getting deeply into debt, but rather for pursuing a cautious policy in all operations entering into the future.
 The immediate outlook for the stock market is uncertain. Our rail- roads our mills and our merchants are all busily employed. Material pros X perity is evident on every hand. La Dor is getting it's share and demanding more. Concessions have been given l0 coal workers and no strike is eX-