New Britain herald., 1916-10-21
Henry Cleus
 Weekly Letter
Especial to the Iierald.)

States, but in the world over. Al
 neutral countries are enjoying eNCep- tional prosperity and in this respect the United States far outdistanceS every one of them. The war, "l course, Is the supreme influence, all other factors being of minor import ance compared with this one. Even our election, full as it is of important potentialities, is completely over shadowed by the cataclysm across the sea. This war is almost entirely re sponsible. for the scarcity of beth commodities and labor. Short crops are a factor that cannot be overlook htd nevertheless the old and supposedly obsolete law of supply and demand Is working ceaselessly with an energy never before experienced, because ol the struggle now devastating Europe. This week wheat and corn touche' new high points, with indications that still higher figures may possibly De reached. All food prdoucts are rlS- ing, and the same is true of clothlns' while our mineral industries-lron steel, copper, petroleum, etc-are rushed at a pace far exceeding the most daring expectations of year ago. Bradstreet's commodity index l ~ advance of 22 per cent. since the war began. Industries dependent upon agricultural and mineral products are reaping directly or indirectly large profits as a result of war imitation, but their prosperity is small com pared with what has been reached py a few of the big industrials, notaply those engaged ill the fabrication ot steel.
 The question forced upon our minds is how long can such mgh teE- sion prosperity last; and have we m the United States reached the crest of the wave? I think not; because the end of the war, on which all this feverish rush depends, is not yet III sight. Apparently there will be no peace for many months at least Signs of serious exhaustion on either side are still wanting, reason has lost US sway. and mad passion rules all bei- ligerents. Until the power of one slde or the other is broken it would seem that peace will he impossible. Ire allies are already negotiating TOT ah- other big loan on this side; steel TOT munitions is being ordered dellVeraole into the third quarter of 1917, hl:d ships. guns and munitions are being turned out with greater intensity than at any time during the war. Such efforts do not portend peace. They rather suggest further sacrlhces, further destruction and more ana r,1ore waste, although it may be that change of mind or breakdown or strene-ta will develop when least ex- 1ected. Tn any event, the immed1- ate outlook for peace is remote and this conviction is the prime source of present market strength America cannot avoid looking on in sorrow at the narrowing spectacle, but our people and our government are alike incapable of interfering or affecting the issue in any way All neutrals are benefiting from the needs of the bclligerents; the United States, owing to it's more industrial capacity, nat uralIy profiting far more than any ether. When the war is over, this country will find itself in a vastly strengthened position. It will be financially independent of Europe; and out of the vast profits made from the war, it will doubtless be en- abled to assist many of the suffering nations of Europe to. recover their impaired positions by depending largely upon this country for the capital and material needed for re- construction, The world has never seen such an example of the folly of war, Or the wisdom of peace, as will appear when peace arrives.
 For some time to come our leading tndustriaIs promise tp experience much speculative activity, the steel issu es-which are earning fabulous profits-being naturally leaders. At tention, however, is now being turned to other industrials in the war group; as these are beneflting from the inn petus given general trade and are less hazardous than some of the highly in Hated munition shares Railroad stocks are also receiving more favor from both investors and spectators. All the principal lines are reporting ex- eellent earnings, and in spite of grow Ing expenses, their net results are highly encouraging. A few lines have already increased their dividends, some have passed out of the stage of doubt in this respect, while others seem likely to advance their dividend rate in the not distant future. The betterment of the railroad situation is apparent in other directions than improvement in dividends. One of the most important things to remember In railroad matters is that public opinion is at last turning from chronic hostility and prejudice to an attitude of justice and fair play. At last it is being recognized that the railroads have been the prey of unjust treat ment, that much legislation has been oppressive and unwise, that labor's de- mands have about reached the limit of public sympathy, and that if our trans portation system is to develop in keep
 Ing with public requirements, the rail-
 roads must be placed under rational
 Federal protection, where it is possible
 for them to escape the conflicting
 authority of forty eight different states
 and to earn a fair return for their ser