The Bridgeport times and evening farmer., 1918-07-08
The World of Finance

would have been impossible but fo9 the smooth working of the new Fed eral Reserve system. During the next 12 months it is expected that $24,0OO,- 000, 900 will be raised. This means a continued pressure upon the money market, also that the regular mer- cantile and financial requirements will have to take second place. The resources of the Federaray Reserve banks have already declined 20 per cent, and in event of an additional drop, further stiffening of interest rates may be anticipated. Crop re- quirements will soon be felt and may rank next to government require ments in importance. Since compile tion of the Third Liberty Loan, funds have been in somewhat better supply, considerable new financing having been successfully f1oated in June The new securities issued in that period, excluding government loans, were $253, ,000, GOO, an increase of $194, 900 over the same month last year. About S150, 900 of these issues were for industPials. Since June 1st, the total new issues, railroads and industrials; amounted to 6S9 1000, 900, or $257, 900, 900 less than n year ago. Money condi- tions being what they are, it is pre- mature to expect any. liberal contin- luance of new issues, and the conse- quent slowing down of new enterprise was illustrated by the total of new charters reported in June in the prin- cipal States, which amounted to only s227, ,000, 900, compared with $423, 900, ,o00 a year ago.
 Attention is still concentrated upon Washington, which during the war will continue~to be a dominating fac tor in business and finance. Our gov erEment machinery is now running much more smoothly, and there is g. very evident desire on the part of of ficials to interfere as little as possible with legitimate business, while exer- cising a rigid exclusion of profteer- ] ing and all non-e essential labor The war is, however, a heavy burden, even for a young giant like the United States, and taxation weighs heavily upon all classes; those who pay little or no direct tax, carrying a load un- consciously in the high costs of living. Congress is at work framing 8 new bill, which for sake of the country as whole must he based upon sound and just principles. The bulk of the tax will fall upon large incomes and excess profits This Is just and proper, provided the main sources of new capital are not pinched to the starvation point, which would seri- ously impaiI the success of future loans.
 In the financial district there is a. general undertone of optimism, based
 upon the satisfactory military out look. Some industrials declined un- der government regulation, while oth- CTS advanced. Fluctuations were usually within narrow limits; sharp advances being followed by profit taking, while most issues responded more readily to good news than to bad. Railroad issues were steady, re- cent reports showing continued i'm provement in earnings and financial status. Public utilities are of course neglected for reasons well understood. Government bonds were generally firm, and show a strong undertone
 owing to military successes, while Liberty issues were frmer, following the report that our government did not intend to pay higher interest rates
 on coming issues. One striking evi- dence of general soundness in busi- ness is found in the record of failures which for the first six months of the current year showed liabilities of only S70, 900, GOO, the smallest amount re-
 ported since 1907, when the total was below $60, 900. For the month of
 June the totals were the lightest of
 any month since September, 1906. The
 outlook for the stock market is fla
 voraible: though the possibilities of
 disturbing news from the front or
 Washington and the limitations of the
 money market, renderl it necessary to pursue a conservative policy in both financial and commercial operations.