New Britain herald., 1919-08-02
MARKET AND REAL ESTATE REVIEW

started on a growing scale almost overnight we have become the sec ] ond maritime power in the world Ga 1 fact far from being properly appre- ciated); our export trade has scarce l ly had time to shift from a war basis 1 to a peace basis before it finds itself 1 both domestic and foreign trade. De- mands for shipbuilding. autom obiles, l construction, engineering and export trade are already taking so per cent l of the steel output, and will soon require more. As yet the railroads have not purchased supplies with any 1 freedom and their demands for rolling stock and other equipment will prove enormous owing to the urgent need of replenishing after prolonged war strain, also a period of enforced dc preciation and starved improvements. Should the status of the railroads De fully restored as to earnings, ca pacity and credit a great development may be looked for in this important industry, which owing to unWise leg iSatiOn and harsh control has made little or no progress in a decade. The railroad system of the United States was probably never so far behind in public efficiency as at present: and for this condition the country has to thank unintelligent and unjust rep resentatives who preferred catering to public prejudice rather than pub lie convenience.
 Giving Credit to Europe.
 Renewed weakness in foreign ex- change impressed the financial con- munity with the necessity for prompt action toward financing our export trade The demand for American products is pressing from all parts of the world. Shipments of food and raw materials are upon an enormous and increasing scale. Imports in crease very slowly, and our takings of foreign securities in the shape of government issues are totally made quate to affect the balance. If we are to sell our surplus and do our bit toward the rehabilitation of Europe, credit must be given on a large scale. It is estimated that within the next 12 months we shall have to allow credits of at least s1,00O,O 100000 to European buyers. Now that the war
 
 agencies should provide relief. Scv- eraI important loans have been made to foreign countries, and more are to follow This week the French gov ernment announced the contemplated issue of s50,0Oo,O00 Treasury notes with a maximum weekly maturity of $5,00O,00O for the purpose of han ding it's 60- or 9O-day bills on the
 
 This plan should afford some relief, and, if so the same means could be adopted by other governm ents.
 Railroad Outlook.
 Transa ctions in railroad shares con- tinue upon a limited scale, mainly because of their stabiIiza ton by gov ernment control and guarantee. This state of inertia. however, cannot last indefinitely Before the end of the current year the roads will probably he returned to their owners in ac- cordance with the pledge made by President Wilson when taken over by the government. This means great changes in conditions under which the roads will operate in future. They will no longer be under unit control Some of the opera ting innovations in troduced by the government will re- main, but many will not. The public is disappointed with government man agement which "doubed charges and halVed the scrvice"; so the cause Of government ownership is at a lower ebb than for many years. Under gov ernment control some roads gained and others lost by changed methods Of routing and operation. To a large extent the former methods will be restored under private managem ent. Whether the roads be allowed to ad- vance rates sufficiently to compen- sate for increased costs is not vet determined, but som ething will have to be done to take the place of gov ernment guarantee in order to return the roads in as good condition as when taken over Important new railroad legisla ton is, therefore, in prospect.
 Government Economy
 Secretary Glass made an encour,r ing statement or treasury conditions that should be kept in mind Gov ernnlent expenses have declined to a marked extent, amounting in June to only $S09, 9,0O0,O00, compared with s2,- 06O O,O00,0 900 in December. It is esti- mated also that expenses will be $S,- 00,OOO,o 900 less than in the fiscal year ending June, 1919, when the fig ures touched $1S,5 0,OOO,OOO. This is a very substantial reduction in ex- penses, which should be carried to a still further degree, since they are still running at over eight times the expense f