AMERICA’S ERA OF PROSPERITY.

Timaru Herald, Volume CXXIII, 19 March 1926, Page 9

AMERICA’S ERA OF PROSPERITY.

Report Of Federal Reserve Board. MONEY AND BUSINESS PLENTIFUL. By Cable —Press Association —Copyright. Australian and N.Z. Cable Association. (Received March 18, 7.35 p.m.) WASHINGTON, March 18. 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: New domestic security flotations in 1925 totalled 6,200,000,000 dollars, which is the largest for years—since the days when the Government was borrowing heavily for war purposes. In addition, foreign issues floated in the United States, in 1925, totalled 1,300,000,000 dollars, of which 1,100,000,000 dollars were new issues. The remainder represented funding operations.

Simultaneously, the Department of Commerce in estimating the American money invested abroad, said that regardless of the tremendous volume of financing, there had been no serious strain, on the credit facilities. Long term interest rates on bonds, were lower than in any time during the past nine years, also corporate earnings were greater than in any other recent years. The Board reported that the healthy state of the investment fund was due to active business and full employment in industry, while the proceeds of the security issue had been used partly in financing construction work, which was large during the period, and partly in the acquisition of additional industrial equipment and also in financing foreign demands for American goods, and assisting the stabilisation of foreign monetary condition. The report added that the volume of the nation’s savings was exceptionally large; the earnings of factory workers high, and for more than a year the farmers’ inepme,. though somewhat smaller than in 1924, was larger than in other recent years.