New Britain herald., 1925-12-26
More Than Six Billion Dollars Poured Into Foreign And Domes- tic Rotations U. s. Leads As Money Lender.
Germany and Bel
 gium Are Among Inn portant Prospective Bor- rowers for Coming Year.

rowers for Coming Year.
 New York, Dec. --(By The Asso- clated Press). The flow Of Ameri. can capital into foreign and domes- JIG investments, comprising loans for governments, municipalities and cor porate enterprises, reached unnre- cedented proportions in 1925. While accurate compilations are not ye, available, preliminary estimates in dlcate that the total of capital flo- 'atlons eclipsed last years record O. slightly more than s6,O00,OO0,OOO.
 Billion in Foreign Loans
 For the second time in history. American investors poured more than billion dollars into foreign loans during the year. equalline + not surpasstng the 1924 record Of approximately $1,2O0,O00,00O. Pro ductive enterprises claimed about S55o'OOO,OOO of the total the gain Tn this type of business offsettipg n moderate decline in government bor- rOWingS.
 Americas commanding position sR lender to the world also was strik- lngiy revealed by the establishment, Of huge private credits to help in the stabilization of foreign currepcles. fortified by the possession of enor- nous gold stocks. American bank CTS set aside $500, 100000 fr the pro. tecuon of Great Britain's return io the gold standard and advanced many millions additional to ensure the stability Of the Belgian and Italian currencies preparatory tn their re-establishment on Ea.i basis.
 Much New Financin.
 Activities in the field Of new ;in. ancing overshadoWed in interest ths dealings in the bond market, which failed to equal those of 1924 in breadth and volume. Prices, how ever, were maintained on a higher level throughout the year. The up- ward movement which was in full swing as last year drew to a close was carried over in 1925, reaching it's peak in the Spring. Thereafter a a gradual tightening of money rates caused the pace of trading to slack en and prices eased off several points from the top although still holding several points above quota l tions of year ago.
 Several factors contributed to the markets loss of animation. For one thing, bond trading lacked the impe- tus which 1t derived in 1924 from | three reductions in the New York Federal Reserve rediscount rate. The | only change made this year was an advance from 10 S1a per cent in l February, and its effect was seen shortly afterward in the downward trend of bond prices. Toward the close Of the year the market labor ed under growing fears that the New York bank would follow the other Federal Reserve institutions in es- l tapllSnlng per cent rate.
 Much Idle Money
 No less potent than the bank rats situation was the tendency of sur | plus funds to seek an outlet in the more speculative field of stock trad ing. The call loan reservoir was fill ed with idle money, most Of which was sent here for placement by in terior banks The higher discount rates put into effect by banks out side New York in the fall attracted some Of 1t home, but not until 1t had been utilized as one of the factors 10 carry speculation in stocks to un- paralleled heights. These spectacu- lar operations, coupled with the steady flow of new offerings invit- ing investment. acted as a counter attraction to the bond market.
 Although many substantial gains were recorded during the year, the market lacked the wide price move ments which featured the recovery of many speculative bonds in the preceding year. Obligations of one southern railroad, which carried unique warrants to purchase stock in a Florida land company, scared d. most 100 points before they were re- tired, and few convertible rail and oil bonds moved up % 10 80 point, in the wake ot advancing prices fol these companies shares.
 Only sharp Break
 The only sharp break in price: took place in the bonds Of the Chi cago. Milwaukee X St. Paul Railwa, when financial disaster overlook this northwestern system. Overhurdenet with a funded debt Of some s40e,, o00,o00 and facing maturitics o 50,000,000, the road was forced into receivership in March and its securi ties plunged to record low levels. Re coveries followed the drafting ana subsequent modification ot reor ganization plan, providing for drastic scaling down of fixed interes charges and foreshadowing an earl, restoration Of the road to sOuui financial footing.
 The St. Paul receivership threg more than ssSo. .o00. e0e Of bonds in to default but the amount Of in auStrial issues unable 10 pay inter est was reduced from Sisl,n0e.o0e | a