New Britain herald., 1919-07-12
STOCK, REALTY AND BUSINESS REVIEW
Henry Clews Weekly Letter
Especial to Herald).

taking up the reins of government. He will doubtless secure a reasonably early ratification of the peace treaty with Germany, and it is to be hoped will succeed in establishing the League Of Nations after some slight notifications The president will find an accumulation of pressing problems awaiting his consideration, and the latter half of the year promises to be a period crowded with important legislation. Congress should realize that no time should be wasted in petty political disputes. The whole country is serious-minded, and WILL tolerate no unnecessary delays at Washington. The nation really wants Congress to get down to real bUsl- ness, to hasten resumption, to restore normal conditions and to revive busl- ness freedom as far as possible President Wilson is correct in assert ing that Germany should De allowed to resume trade with the res1 of the world as soon as practicable, this for our own sake as much as for others.
 Crop Outlook.
 Our agricultural situation IS some what mixed and not entirely Satis factory. What the world needs is abundance of the necessities made scarce by war. Wheat is our only important crop that will be really abundant. The acreage devoted to this cereal was Fl # million acres, of Il millions above the record; while, thanks to exceptionally good weather conditions, the yield per acre is un usually high, or 16.2 bushels. On the other hand, the corn crop is only ordinary in yield; cotton will be even shorter in supply than last year, and oats show a deficiency. High prices assure the farmers of exceptional prosperity; but dear food is not like ly to please those already burdened by the high cost of living, the only cure for which is an increased pro- duction of food. clothing and shelter. The July crop report gave the condi- tion of what at 86.6 compared with a ten-year average of 1.6, and the indicated yield is ,161, 100000 bushels, or 135, 100000 in excess of the record crop of 1915. Condition of corn was reported at S6.7,' against a ten-year average of $40. The anticipated yield of corn despite a reduced acre age was 3,S15, 5,0OO,000 busheIs which has been surpassed several years, but may be classed as a fair yield. The indicated yield of oats was 1,4O3, 3,OOO,- 900, a smaller yield than usual.
 The Course of Values.
 Legitimate, strade and Legitimate speculation alike must be conserved by a closer restriction of credit to sound concerns and sound enter prises. All great wars have been succeeded by CD intense industrial activity, CD great prosperity, '(3) ex- cessive speculation. We are already in stages one and two. The third is still in the future.
 Monetary Conditions.
 The condition of the money market attracts more or less attention, es- pecially the scarcity and consequent extreme fluctuations in call money. The latter, is, of course, due to the enormous pressure of government borrowing, the banks naturally pre- ferring to make such demands their first consideration. The positive at titude Cf the Reserve Board in dis coura ging undue speculation is the next factor of importance, and lastly the unusually heavy demand for f legitimate foreign and domes- tic requirem ents, both of which are becoming increasingly insistent. It is quite evident that in spite of the pres ent great expansion of credit, further expansion and not contraction will be the rule in the near future. Very soon crop demands will assert them selves, followed by an active autumn trade. The problem of financing big exports is still unsolved. Other na- tions are coming here for funds, Canada having placed loan this week for s75,OOO,O0O that was quickly snapped up. Not only Europe is knocking at our bank doors but South America and the Orient also. As for ourselves, we are still investing inn mense sums in oil, shipping, chemical and foreign enterprises. The resump- tion of building is slow because of high costs and the difficulties of mak- ing large loans. Any change for the better in these directions would cause a sharp revival in construction work. The steel industry shows symptoms of revival.
 Market Tendencies.
 The stock market appears to be drifting into a new stage. The buy ing power is excellent and there is no abatement in underlying confidence in the future; but there is decided change of attitude toward stocks which seem to have been over-en- thusiastic in discounting the future in such quarters there has been more or less liquidation and consequent un- settlement of values. This process