New Britain herald., 1917-10-29
Henry CLews ,
 Weekly Letter

SSS
 Especial to the Hera1d.l
 New York, Oct 29.-Numerous cross currents have kept the market in an unsettled condition, the result being frequent breaks and temporary rallies The all absorbing influence has been the Liberty Loan, which proved a magnificent success. The $3,0OO,OOO,OOO mark was reached on Thursday, and it is hoped that the Loan will be pushed to the limit and oversubscribed to at least $5,000,0O0,- 900. It must be taken for granted that large portion of the national income will be required to meet these obliga- tions for some time to come. The United States has virtually become banker for the Allies, the responsibili- ties and strain of which must be squarely shouldered for months to come. While these abnormal de- mands will temporarily defer new capital obligations, they will on the other hand infuse fresh vigor into all industries necessary for conduct of the war. The bulk of this vast loan will
 be spent in the United States, loans
 to the Allies being largely expended
 here for munitions, etc. This means
 continued activity in spots. Our coun-
 try is keenly exerting its volcanic
 energy" as Lloyd George aptly terms
 it, for prosecution of the war. Time
 is necessary for development of the
 power to crush militarism; a power
 which we possess and which we have
 already pledged. We have double the
 population and resources of Great
 Britain, which is at present bearing
 the brunt of the war; and unless Ger
 man military rulers are b1indly bent
 on national suicide, they should
 awake to what will happen when our
 full might and resources are beating
 hard against them. Peace rumors
 continue rising to the surface, having
 their origin chiefly in the reports of internal disquiet in Germany. Such rumors should not be taken too seri- ously, being evidently put out for dip 1omatic effect and to asphyxiate American energy, if that be possible.
 One of the weak sections of the
 stock market for some weeks past i1as
 been the public utility issues. The de-
 clines in these must be attributed
 chiefly to the great expansion in the
 operating costs of gas, electric and
 railway plants; all of which must pay
 heavy increases for oil, coal, wages,
 taxes, etc., yet cannot raise their
 charges in compensation because of
 officials who are usually governed by political considerations and seeming
 ly have little knowledge of business
 problems. In 8 few instances selling has been hastened by 8 desire to in- vest in the Liberty Loan; while in others there is fear of the rising tide of socialism and the approach Of government ownership, which prom jse to be quite factor in the coming election. These influences, however, have probably been largely discount ed. In some of tho best light and traction companies the fall has gone beyond all reason; though that does not mean that values will not drop to still lower levels while present appre- tensions exist. Government owner ship is not an immediate probability 1 because public opinion is unprepared l for such step, and neither national, l state nor city governments are in a !, position to finance such operations. l Moreover, public management has thus far conspicuously failed to prove its superiority over private manage ment, notwithstanding the criticisms which can be applied to the latter. LII AAA"AlS CdSCS, dioo, puDl1C res uldllOu l has failed solely because of incapacity of the regulators, and not a few prime investments have been sold at un- { necessary sacrifices as result of the failure of government regulation.
 Considerable uneasiness exists in business circles concerning the labor outlook. Labor as a whole has been loyal and efficient. Wages have risen sharply in some instances and are ad- vancing in others. Generally speak ing, labor is unusually prosperous in I all sections of the country. In not a few instances, however, the effect of , high wages has not been what was expected, since individuals often pre- , fer to work fewer days and idle more. prosperity fails to stimu- late effort; and the result of high wages has, much to the surprise of , some theorists, resulted in less work and less product; also more discon- { tent. What the outcome will be is l problem that is puzzling many of the leaders of industry. Already there are rumors of further demands from railroad employees who have recently been the recipients of liberal in creases
 As for the future of the security ( it is difficult to make any re- , liable prognostications. It will be sure to admit however, of quick in and out profitable transactions as fre- 1uently wide fluctuations will doubt { ess occur in the immediate future.