New Britain herald., 1917-06-09
Henry CLelvs :
 Weekly Leffer

U66NSy 10SI0Y
 Especial to the Herald.)
 New York. June s.-The weeks events were generally of favorable nature. Registration day passed off successfully, and the total absence of disorder, as well as the patriotic man. ner in which 1o,ooo.o0o young men reponded to tho call, was assurance of the fact that notwithstanding fears and agitation to the contrary the United States was in fact and name Q united country. From Europe the news was also more encouraging. The allies are making steady progress; the sumarine warfare shows signs of weakening, and disturbances in Rus sia seem less threatening than . few weeks ago. Reports concerning the Liberty Loan continue highly stim- ulating. and all indications point to it's complete success in spite of the dihiculties of raising such vast sum before our people had been hurt or stung into very strenuous belliger- ency. All in all, the weeks develop ments were of a stimulating nature, and were distinctly reflected in q more active and stronger stock mar ket.
 We may congratulate ourselves that our financial resources are in good condition for meetnig the coming strain of war. The latest national bank call May 1st, showed deposits I nnnh est total on record, and $1.s44. 000,0 900 more than a year ago. Loans on the same date aggregated $8,761.000,R00, an increase of $1,146,000.o0O during the same twelve months. The increase in loans, being considerably smaller than the increase In deposits, 1t is fair to assume that up to that date there had been no imitation Of credit, and that the growth of deposits was chiefly due to accumulation of sav- ings. If any further evidence of the excellent condition of the national bank was needed, it could be found in the surplus reserves; which on May 1st stood at $o74,0O0,0O0. an increase of $I85, ,O00, ,OO0 during the year. Their total reserve was $2,473.000.000, or $816, 6,O0O,00O more than last year. As the national banks constitute about half the banking power of the United States, our banking resources must be regarded a m a very satisfactory state. if the position of other banks be at all similar to that of the national in stitutions.e
 Under the new Reserve system our banking resources have been im- mensely expanded and strengthened. This Is incalculable good fortune, for had the former clumsy and tn- adequate banking system been still in vogue. the country would have been in danger at this time of either 8 serious financial crisis. or else threat ened with nasty and tll-advised legis- lation. which might have required generations to get rid of after the war. Although we have not yet fully availed ourselves of the advan- tages which the new laws offer, the country finds itself in an exceedingly and we'll fortified in all essentials to meet the tremendous load which financing our Allies and ourselves will impose upoh our fiscal machinery. These demands 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 United States the richest lender for long period. As an illustration of the efficiency of the Reserve system, the treasury just issued another offering of $2e0, 0o0. 900 in treasury certificates. which makes the total of these notes issued under the recent war revenue bill about $9OO, 100000, all of which has been placed through the Federal Reserve banks without producing ripple in the money market. In this connec- tion our gold supply will also be a subject of primary interest. The present stock of gold in the United States Is estimated at the huge sum of nearly $3.oOO,O00,O00 or approxi- mately one-third of the worlds stock. This Is far beyond our normal require ments; yet the enormous obligations which this government is about to assume change the entire situation and necessitate a conservation of our gold supply, which was providentially poured in upon us at time when we were not in need. During the ten months ending April 80, the excess of gold imports over exports amounted to $666.000.000, against $274,000,00O in 1916, an increase of $S92,OO0,O00. The bulk of this sum came from Great Britain and the Allies in payment for munitions and food. In future these imports will doubtless be very largely curtailed if not almost entirely stopped, since hereafter munitions supplied to the Allies will be paid for by the home loans which our govern ment is now making to the Allies. Of late considerable gold has been ex- ported, chiefly to Japan, etc., though it is understood that this movement will be restrained by an arrangement to invest such balances in American or British bonds.
 The stimulus of war upon American home trade is not difficult to trace.