PROSPEROUS AMERICA.

New Zealand Herald, Volume LXIII, Issue 19280, 19 March 1926, Page 11

PROSPEROUS AMERICA.

REVIEW OF POSITION.

HUGE SUMS INVESTED. PEOPLE'S EARNINGS LARGER. By Telegraph—Press Association— Copyright. (Received 5.5 p.m.) A. and N.Z. WASHINGTON. March 17. Hie Federal Reserve Board has published a survey of current financial and industrial developments in which the United States is depicted as enjoying an era of almost, unprecedented prosperity. lhe report states that new domestic security flotations in 1925 totalled £1.240,000.000. This is the. largest for one year since the days when the Government was borrowing heavily for war purposes.

Foreign loans floated in the United States in 1925 totalled £260.000,000, of which £220,000,000 represented new issues, lhe remainder represented funding operations.

The Department of Commerce estimated Uiat American money invested abroad on January 1, 1926, totalled £2,100,000,000. lhe Reserve Board says that notwithstanding this tremendous volume of financing there has been no serious strain on credit facilities. Long-term interest rates on bonds arc lower than at any time in the past nine years. Also, corporate earnings are greater than those in any other recent vear.

The report, says the amount invested is due to active business and full employment in industry. The proceeds of security issues have been used partly for financing construction work, which has been considerable in tho period, and partly for tho acquisition of additional industrial equipment. They have also, been used to finance foreign demands for American goods and to assist in tho stabilisation of foreign monetary conditions.

"The volume of the nation's savings is exceptionally large," says the report. "The earnings of factory workers have been high for more than a year, and farmers' incomes, although somewhatsmaller than in 1924, were larger than in other recent years."