New Britain herald., 1918-07-06

next twelve months it is expected that $24,000, 900 will be raised. This means a continued pressure upon the money market, also that the regular mercantile and financial requirements will haVe to take second place. Ihe resources of the Federal reserve banks have already declined 20 per cent, and in event of an additional drop, a further stitfening of interest rates may be anticipated. Crop requirements will soon be felt and may rank next to government requirements in impor- tance Since completion Of the Third Liberty Loan, funds have been in somewhat better supply, considerable new financing having been successful ly hoated in June The new sccuri- ties issued in that period, excluding government loans, were ,O00, an increase of $194,O0O,O ,O00 over the same month last year. About $15O,- OO0.OO0 of these issues were for in dustlals Since June 1St, the total new issues, railroads and industrials, amounted to S9,000.00O, or $257, 0O0,OO0 less than a year ago Money conditions being what they arc. it is premature to any liberal continuance of
 
 down of new enterprise was illustrated by the total of new charters reported in June in the principal states, which amounted to only $227,O00,0OO, com pared with $423,OOO,0O0 a year ago.
 Attention is still concentrated upon Washington, which during the war will continue to he a dominating factor in business and finance. Our govern mont machinery is now running much more smoothly, and there Is 2 very evident desire on the part of officials to interfere as little as possible with legitimate business, while exercising a rigid exclusion of protiteering and all noneSsential labor. The war is, however, a heavy burden, even for a young Slant like the United States. and taxation weighs very heavily upon all classes; those who pay little or no direct tax, carrying load uncon- SCiouSly in tho high cost of living. Congress is at work framing a new bill, which for sake of the country as C whole must be 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 Capi- tai are not pinchcd to the starvation point, which would seriously impair the success of future loans.
 In the financial district there is general undertone of optimism, based upon the satisfactory military outlook. Some induStrials declined under gov ernmcnt regulation. while others ad- vanced. 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, recent reports showing continued improvement 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 tirmer, following the report that our government did not intend to pay higher interest rates on coming issues One striking evidence of general Soundness in business is found in the record of failures which for the first six months of the current year showed liabilities of only $70.O00,OOO, the smallet amount reported since 1907, when the total was below $6O,000, 900. For the month of June the totals were the lighteSt of any month since Sep tember 1906. The outlook for the stock market is favorable; though the possibilities of disturbing news from the front of Washington and the limi- tatfOuS of the money market, render it necessary to pursue a conservative policy in both financial and commer- Cial operations.
 HENRY NLEWS.