New Britain herald., 1919-05-31

will consequently be simply tremen- dous, and the only impeachment to widening mercantile activity at this moment is a prudent hesitation or distributors to stock up freely at cur rent high prices. But a great con- sumptive demand is in prospect neV- ertheless, the only check upon Whlch will be frequent scant supplies ana ln- ordinately high prices that are already acting as an important restraint upon buyers.
 The Railroads and Congress.
 The agricultural situation is also a very important factor in the railroad outlook, which otherwise would be very discouraging. It is credltably stated that the railroads will run be- hind to the amount of $1,750,0oO,ooo before return to their owners; a sum which congress may be asked to ap- propriate in fulfilment of its promise to restore the roads to their owners in as good condition as when taken over. This promise alone saved the roads from financial disaster; and, when to this is added the prospect of good business next fall, it Is seen that their future is much better than appears on the surface: hence their recent n. eration in connection with security values is the attitude of the next con- gress towards business, which is more reasonable and capable than it's pre- decessor. The necessary appropria- tions will certainly be made; the rail- road problem will of course be tackled and some improvem in the meth cd of taxation will be accom- plished, even if no reduction in amount is eff fected Tariff legislation is possible. but it will be difficult to devise any advance in rates that will add to necessary revenues, when imports are already abnormally light and not like ly to show much increase this year. The fewer the changes in the tariff the better until more settled condi- tons are reached.
 Feeding Europe.
 Foreign trade returns in detail show some very striking changes. During the last ten months exports of bread stuffs reached $739, 100000, an in- crease of $221, 100000; and meats to- tailed s900, 000,000, a gain of s410,- 100000. Here is a total increase of s631, 100000 in food products, to which might be added another item, 70.o00,oO0 gain in cotton oil ship menus. w nile a pOfllOIl Ol llle llCI0dSe is due to higher prices. it is very evi- dent that our efforts to feed starving Europe have caused an expansion of fully $700,OO0.00O in our food exports for the ten months ending April.
 Firm Time Money.
 The monetary outlook is fairly sat isfactory. Our government is issuing treasury notes quite freely, and the banks are taking them without diff culty, having somewhat 1essened their holdings of government bonds. Tn the early part of June the second in stalment on the Liberty loar. will be- come due. Foreign governments are likely to seek credits in larger sums; and the necessity of financing our ex- port trade on definite lines is also be- coming more pressing, in proof of which is the growing sentim ent favor ing the creation of a, huge banking organizations for this purpose. local applications for capital are also be- coming more numerous, and within a few weeks the demands for crop moving will assert themselves; not to speak of the expected greater activity in business, and the effect of high values which absorb banking funds. The chances, therefore, favor firm time money for several months to come.
 Reactions in the stock market were slight and strong undertone still prevails, the upward movement ap-