The Bridgeport evening farmer., 1917-06-12
HENRY CLEWS
 WEEKLY. LETTER

7, The weeks events were generally of favorable nature. Registration day passed off successfully, and the total absence of disorder, as well as the patriotic manner in which 1O,- 100000 young men responded to the call. was assurance of the fact that notwithstanding fears and agitation to the contrary the Cnited States was in fact and name a united country. From Europe the news was also more encouraging. The Allies are making steady progress; the submarine war fare shows signs of weakening anu disturbances in Russia seem less threatening than a few weeks ago. Reports concerning the Liberty Loan e~ntinue highly stimulating, and all indications point to its complete sue cess in spite of the difficulties of rais- ing such a vast sum before our peo- ple had been hurt or stung into very strenuous belligerency. All in all' theN weeks developments were or a stimulating nature, and were distinct H reflected in more active ana stronger stock market.
 We may congratulate ourselves that our financial resources are in good condition for meeting the com ing strain of war. The latest nation al bank call, May 1st, showed deposits exceeding $1s., 100000, the heav- fest total on record, and $1,944,O ,OOO,- 600 more than a year ago. Loans on the same date aggregated $S,751, ,000,- 900, an increase of $1,1 100000 during the same twelve months. The increase in loans, being considerably smaller than the increase in deposits, it is fair to assume that up to that date there had been no imitation of credit. and that the growth of de- posits was chiefly due to accumula- ton of savings. If any further evil dence of the excellent condition of the national banks was needed, it could be found in the surplus re- serves; which on May 1st stood at $e74, 100000, an increase of $135,- 000, ,O0O during the year. Their total reserve was s2,473,000.000, or $315,- .00O, 900 more than last year. As the national banks constitute about half the banking power of the United States, our banking resources must be regarded as in "a very satisfactory state,s if the position of other banks be at all similar to that of the nation al institutions. Under the new Re- serve system our banking resources have. been immensely expanded and strengthened. This is incalculable good fortune, for had the formei clumsy and inadequate banking sys. tenn been still in vogue, the country would have been in danger at this time of either a serious financial cri- sis, or else threatened with nasty and ill-advised fiscal legislation. which might have. required generations to get rid of after the war. Although we have not yet fully availed our selves of the advantages which the new laws offer, the country finds 1t self in an, exceedingly strong financial position, well equipped and well for tified in all essentials to meet the tT tremendous load which financing our Allies and ourselves will impose upon cur fiscal machinery. Ihe
 must continue not only as long as the war lasts, but perhaps for some time after, because the nations of Europe will be heavy borrowers and the Uni ted States the richest lender for a long period. As an illustration of the efficiency of the Reserve system, the Treasury has Just issued another of ferring of $20o,O00,000 in Treausry certificates. which makes the total Of these notes issued under the recent War Revenue Bill about $900,000,00( all of which has been placed through the Federal Reserve Banks with pro- ducing a ripple in the money market In this connection our gold supply will also be a subject of primary in. terest. The present stock of gold 1T the United States is estimated at the huge sum of nearly s3.oo0, 900. 900, ol Approximately one-third of the worlds stock. This is far beyond oul normal requirements; ayet the enor. nous obligations which this govern. is about to assume change the entire situation and necessitate a conserva. tion< of our gold supply, which wa. proyidentially poured in upon us at time when we were not in need During the ten months ending Apri 30th, the excess of gold imports ovel |. exports amounted to $666,000,0 1000 against $274.0O0,O00 in 1916, an in
 crease of $392,O00,O00. The bulk O. this sum came from Great Britain and the Allies in payment for munf
 tions and food. In future these i'm
 ports will doubtless be very largely curtailed, if not almost entirely stop
 ped. since hereafter munitions sup piled to the Allies will be paid for b, the home loans which our govern
 ment is now making to the Allies. O.
 late considerable gold has been ex ported, chiefly to Japan, etc., thougf
 it is understood that this move1nen
 will be restrained by anharrangemen to invest such balances in American
 or British bonds.
 The stimulus of war upon Ameri
 can home trade is not difficult tt trace. Clearing House returns ar, still running 20 per cent. to 25 pel cent ahead of last years huge total That this increase is not entirely du, to imitation of values is proved b, the enormous traffic which the rail
 roads are handling, gross earning
 showing increases of 12 per cent tt 15 per cent every week. Our railroad system is simply congested by the un
 precedented amount of traffic, anc this in spite of efforts, to better CO
 ordinate transportations in every di
 rection- Practically all our railroadl are making good gross returns, while net results are frequently disappoint ing owing to heavy increases Tn ex
 penses for labor and materials. Un. less the Interstate Commerce Com mission grants the entirely reasonable requests for higher rates, the rail roasns will soon be even more serious ly crippled by impairment of thei, financial resources because of the in. action of government body which is supposed to be guided by reason ana not by popular prejudice. The rail. roads are already making extensive