PROSPEROUS AMERICA

Evening Post, Volume CXIII, Issue 30, 5 February 1927, Page 11

PROSPEROUS AMERICA

LARGEST PRODUCTION IN HISTORY

"Evening Post," sth February.

"■ . ■ . Great Britain, which was for so long the leading creditor nation, of the world," This significant sentence appears in the January number of the review published by the National Bank of Commerce in New York. Nothing else can be read into it, even when divorced from its context, that the premiership of finance is no longer held by London. Where then* Clearly there is no other country in the world that holds it but the United States. The remark was hot made in any boastful or offensive spirit, as the rest of the article from which the statement was taken clearly shows; it was made as a simple matter of fact, and it is not easy to contradict in face of the unparalleled prosperity of the United States. There is more money available for investment in the United States than the people seemingly know how to employ at home, and they are looking more and more —not the great financial groups, but the mass of investors—for remunerative but safe propositions beyond the borders of the States. They apparently found one last week in the State of Now South Wales loan of 25 million dollars; and a cablegram from New York, published in "The Post" on Thursday, describes Wall Street as "swept" by a wave of financing new bond issues. The attractiveness of British Dominions Government loans as securities, apart from the return, no doubt appears irresistible to American investors, many of whom are beginning to wake up to the -extent and potentialities of these Dominions. In any case, they must appear in America in a more _ favourable fight than some South American stocks, Government or municipal. Messrs. John Dunn, Son, and Co., New York, writing to Messrs. Brown and Dureau, Wellington, early in Decemebr, state that the year 1926 proved to be a remarkable one m many respects. Early in the spring it -was believed in many quarters that the very satisfactory record of 1925 marked the peak of the present era of prosperity, and that at least some reaction in business activity might be expected. Such provd not to be the case, and when completed statistics are available it will be seen that the volume of production and consumption of manufactured goods in 1926 was the largest in the history of the country. The output of steel set a newhigh record, the movement of freight was of a volume never before equalled,.and the •physical and financial condition of the railroads is the best ever known."

PLENTY OF MONEY.

Funds have been plentiful at reasonable rates of interest and all legitimate needs nave been at all times assured of a plentiful supply of banking accommodation. i Due to high wage scales and steady employment the purchasing power of the masses has been very high, yet the increased deposits of the Savings Bank during the year show that this has been exercised to only a conservative "extentl Crops have been abundant, bnt prices have not been satisfactory as viewed by present-day standards. Undoubtedly the agricultural section of the population have not enjoyed the same degree of prosperity as others, yet there is little to show that any great degree of distress exists. . . . In most quarters the coming year is viewed with optimism not untempered with caution. Present conditions are generally expected^ to continue for some months, at which time the future should be more clearly seen. Much will depend on the amount of building undertaken. This industry' has maintained a surprising degree of activity during the past year and. there are no present indications of i any great recession. BEST OF LABOUR CONDITIONS. The production of automobiles has fallen _ off very much of late, but this is partly seasonal, and so long as general prosperity continues the demand for cars is not likely to abate to any great extent. Labour conditions are of _ the best. No serious disputes have arisen of late, and on the whole working men seem fairly satisfied with present schedules, and show more anxiety to maintain the gains already made than to strike for more. C Impetus to the strength of the share movement was' given by the action of the directors of-the U.S. Steel Corporation in recommending the declaration of a dividend of 40 per cent.. payable in ordinary shares to the ordinary shareholders. The action of the Steel Corporation directors is taken by the financial community as an expression of their judgment in regard to the future of the industry. Eailroad and industrial earnings for the past year will make a most imposing showing, probably exceeding those of any other peace time year. This is true of. the steel, motor, and oil groups, and while the present level of quotations for shares seems high it is justified by the results of the year just ended.