PROSPEROUS AMERICA.

Putaruru Press, Volume IV, Issue 126, 1 April 1926, Page 1

PROSPEROUS AMERICA.

REVIEW OF POSITION. People’s Earning’s Larger. The 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. The 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 “fo.* war purposes. Foreign Joans floated in the United States in 1925 totalled £260,000,000, of which £220,000,000 represented new issues. The remainder represented funding operations.

The Department of Commerce estimated that American money invested abroad <ra January Ist, 1926, totalled £2400,000,000. The Reserve Board says that notwithstanding this tremendous volume of financing there has been no serious strain on credit facilities. jLong'-’term interest raltes on bonds are lower than at any time during the past nine years. Also, corporate earnings are greater than those in any other recent year. The report says the amount invested due to active business and full employment in industry. Th e proceeds of security issues have been used partly for financing construction work, which hae been considerable in that period, .and partly x for the acquisition of additional industrial equipment. They have also been used to finance foreign demands for American goods and to assist in the 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 tor more than a year, and farmers’ incomes, although somewhat smaller than in 1924, were larger than in other recent years.”