New Britain herald., 1916-10-14
Henry CZeus
Weekly Letter
Especial to the Herld.)

war Incidents The first caused weak
compel a slowing down of important |
industries, owing to the necessary ces-
sation Of munition orders ana the |
rehabilitation of trade from war 10
a. peace basis Peace, it is argued, Will
reverse forces which have been push
ing prices to a very high level and
values must consequently recede. Inc
second cause Of weakness was the out
break of submarine activities near the
coast of the United States which re-
vived apprehension of difficulties be-
tween this country and the Central or
the Allied Powers. These two unfaVor-
able developments struck hard upon a
market technically weakened by pro-
longed rise and loaded to the breaking
point with big profits. Extensive
realizing was inevitable, the result
being a weakened and unsettled mar
ket. Fortuntely, the home situation
has changed but slightly, If at all. In
dustry is active, prices are rising ana
the strictly home outlook is certainty
good But the foreign situation, still
the prime factor, is full OF threatening
possibilities besides which we are now
in the midst Of a Presidential cam
naien which is likely to daily grow
more tense AMI irritating. Under such
circumstances the obstacles to fur-
Their rise at this time were lnsuper-
able: and the financial situation, IN
vestment as we'll as speculative, mas
been cleared and strengthened by re-
action, which might possibly be car
ried still further, without serious IN
i,,,~v. On the other hand, the specu-
aroused. many operators with newly
gained wealth and big resources are IN
The market ready to take advantage OF
every shift in the financial current. n
strong undertone of confidence exists
in the financial district; and any favor
able development will be quickly re-
hected in security values. AS yet no
ov,,onton1s of leSsened activity are IN
sight.
Commodity prices are still rising;
the general level being fulyl 70 or 81
per cent higher than before the war
Cotton. copper, steel, Oil, rupper'
sugar, wheat, meats and all 1000 pro-
ducts are advancing, stimulating gen
eraI unrest by adding to the ALREADY
high cost of living. Since the war;
wheat and flour have nearly doupleo,
NETS have risen 20 to 80 per cent. anu
over The British government, AFTER
taking over control Of several conmo-
di+ios ia now regulating wheat sup
n1iee and prices Textiles show sub
stantial rise since the war. Cptto11
goods are Is to 100 per cent hlgher'
| linens have doubled, Woolens are 90 TO
70 ner cent above 1914 and carpets
have risen 60 to 100 per cent. linus
far these advances have been more
hn
than among retailers. Eventually,
| however. they will reach the latter
class and the general consumer, VINO
will also have to pay TO, the increased
costs of distribution arising from the
| scarcity and high wages of labor. This
! upward movement is WOrldWlde ano
| not by any means confined to the
| United States. The causes are numer-
Gus and somewhat complex, and vel
nearly all of them find their primary
origin in the war. First and mos
serious, is the shifting Of millions upor
| millions Of men from productive occu
pations to those Of destruction Hence
Z the scarcity of labor and the 1ncalcu
able wastage Of life, property anc
commodities. Nothing can proven
even higher prices while the terrible
! scOurge of war continues. Froduc
+ioo is decreasing while consumption
| ,nd waste are constantly increasing
co,,ornments NAV endeavor to restrain
speculation with all possible energy
thew NAV seek to prevent the unscrup
u1ous from taking undue advantage
thew may secure better distributor
and somewhat mitigate the hardship
of abnormal conditions; but no gov
eminent is powerful enough to throttl
the inevitable law of supply ana oe
n1and which, owing to Scarcity nov
| operates irresistibly in the clfectloll y
higher prices. High prices are III
natural correction of such conoltloll
and the only sure way or st1mula'il'
production. Economy, efhclency ali'
a+onnage of waste are equally necesar.
to offset the high cost OF living. rye
IN the commercial world the i'll effect
of the war are painfully illustrated
and MANY lessons can be learned
chief of which are the inviolability 0
economic law and the penalties Whlc'
+ba whole world must suffer for tn
STRUGGLE now devastating the Contl
, nent of Europe.
/, Railroad prosperity continues uh
r checked. Reports for twenty-five
3 important lines for the fiscal yea
/ ended June 80 show earnings q
j.. nearly II per cent, compared VII
;. over per cent. a year ago. Thes
results were attributable to the goo
+ | crops and high prices Of last year
= also to the industrial activity brougf
= ehout by the war Railroad mana
e gers anticipate q continuance {
favorable conditions for long perlo
TO come. The steel industry cor
f tinues at high-water mark, and tn
. monthly statement Of the Steel Cor
noration showing untitled orders o
Sentember 80 Of 100000 tons
g satisfactory Our banking situation
e very strong the comptroller haV1n
q annnunced that the RESOURCES Of tn