New Britain herald., 1919-06-14

1 have increased their wealth immense l ly during the war. and are less in need of our assistance than the re- 1 mainder. One good sign of world 1 recupcration is furnished by the Brit l lSh trade returns for May; the total ! exports of the United Kingdom in May being 64,000000 pounds, an in 1 crease of 20,O00.O00 pounds, or near l ly 50 per cent; while imports were 135, 5,00O.00O pounds. an increase of 10000, 900 pounds or less than 10
 per cent. As English foreign trade is more widely distributed than that of any other nation. these figures in 1 diCate a tendency toward worldwide e ! recovery.
 Payment of Loans to Our Allies.
 The suggestion made that our gov , ernment virtually make a present to l the European nations of the s9,50O- :: 900, 900 which we have loaned to them
 should not be seriously entertained. We can make the terms of pawn ent | easy, but final settlement should be re- ! Quircd. These nations can follow the lead of the Swedish government who are now offering $25,00O,000 20-year six per cent. gold bonds in this coun- try. The Allied countries could act on the same terms, and float large loans here. and have the bonds listed on the New York stock exchange where they would no doubt find a ready market as they would be looked upon as a sound investment. This would be a more dignified and fitting action and more satisfactory to all parties concerned.
 Promising Business Conditions.
 Business at large continues promis- ing, cspecally in the agricultural dis tricts, which are banking up on the exceptional prosperity that the farm CTS will enjoy for at least another year. Tn the industrial sections the situation though generally very prom ising is spotty. The steel industry drags somewhat and is running about 60 or 65 per cent. of capacity; though there is much confidence in early inn provement. The textile industries are very active and prices are rising ow- ing to adyannos in wages and raw ma terials. Cotton and woolen manufac- turers seem confident of getting their share Of the farmers money. So are the purveyors of low priced 1uxuries such as jewelry. phonographs, pianos, automob obiles, etc. Machinery build CTS, makers of tractors, harvest ma chinery etc., are also very optimistic The oil industry needless to say Is ex- ceedingly prosperous and even the copper market shows a hardening ten dency. Foreign trade, though much nnba lanced, is moro active, exports of food and raw materials being very heavy, while imports are rising slight ly. The shipping boom appears to be running full swing; tonnage being in adequate and rates very high. Build ing rccovcrs slowly in spite of the ur- gent demand for rental space; the diff ficulties being scarcity of money and high prices of building materials. The labor situation is less threatening. Many advances in wages have been made to assist in meeting high costs of living; and the cultivation of bet ter understanding on both sides is proving beneficial to all.
 < More Sober Stock Market.
 A sharp reaction occurred on the stock exchange, procipitated largely by warnings of the federal reserve board against the reckless speculation which has been developing for the last two or three weeks. Considerable Hquida- ton followed, especially in the highly inflated issues, and the technical sit uation has been materially improved thereby Conditions outside of the stock market are quite as favorable as before the reaction, but whether the decline has run its course or not events only can determine. The money market is serious obstacle to any prolonged rise. stocks had been heavily overhought, and it is doubt ful if liquidation is yet complete. At any rate, there arc now two sides to the stock market. Not much stimulus can be expected from the money market Transa ctions running from 1-2 10 million shares per day re- quire very considerable sums at cur- rent prices 10 finance them. Our gov ernmcnt is still huge borrower and will SO continue for months to come. Any operations that come into con fict with national requirements are likely to meet with Scant conSldera- ton. Other nations are also coming here for credit, and their demands will also increase: so that there is sure to be a strong demand for funds at good rates for some time to come. Needless to say tho difficulties of con ducting a bull campaign will grow nn- less accompanied by frequent liquid alton such as experienced last week. The outlook therefore Is for continued activity on tho stock exchange; but more frequent ups and downs, and perhaps sharper ones than marked the first leg of Inc advance, which began last April and lasted with slight inter ruDtion until the first week In June. More careful discrimination will be needed in all financial transactions in such period as the present.
 HENRY CLEWS.