ERA OF PROSPERITY.

Hawera Star, Volume XLV, 19 March 1926, Page 5

ERA OF PROSPERITY.

PI,ENTY OF MONEY IN U.S.A. RECORD OF INVESTMENTS. \ BY CABLE—PRESS ASSOCIATION —COPYRIGHT. WASHINGTON, March 17. The Federal Reserve Board has published a survey of current financial and industrial developments in which the United States is pictured as enjoying an era of almost unprecedented prosperity. The report says that new domestic security flotations in 1925 totalled 6200 million dollars, which was the largest for years since the days when „the Government was borrowing heavily for war purposes. In adidtion, foreign issues floated in the United States in 1925 totalled 1300 million dollars, of which 1100 million dollars were for new issues. The remainder represented the funding operations. Simultaneously the Department of Commerce has estimated that American money invested abroad at January 1, 1926, totalled 10,500 million dollars. The Reserve Board says that, regardless of the tremendous volume of financing, there has been no serious strain on credit facilities, that long term interest rates on bonds are lower than at any time during the past nine years, and also that the corporate earnings are greater than in any other recent years. The board reports that the investment fund, due to active business and full employment in industry, is sound, while the proceeds of the security issue were used partly for financing construction work which was large during the period, due partly to the acquisition of additional industrial equipment and also to the financing of foreign demands for American goods and assisting in the stabilisation of foreign monetary conditions. The report adds that the volume of savings of the nation were exceptionally large, the earnings of factory workers have been high for more, than a year, while the income of "the farmers, though somewhat smaller than in 1924, was larger than in other recent years. • ■■■——V