New Britain herald., 1917-11-17
Henry Cku' s
 Weekly Letter
Especial to the Herald)

still demoraiized, although the friends of Russia still believe the nation to be sound and not likely to make a separate peace. The Italian situation, it must be admitted, is also discon- certing, and there are fears that the city of Venice may yet fall into the hands of the enemy. On the western front, the British and French keep up the terrific war of attrition, slow ly but surely pushing the Germans back. The submarine warfare seems to be abating, for the time being at least Great Britain's best answer be- ing marked decline in the casualty list and an encouraging increase in her foreign trade of f2O,O0O,OOO in October and about f100,00 1000 for the ten months, compared with a year ago.
 At home tremendous changes are taking place in industry, trade and transportation. Finance was the first division to be mobiliZed on war basis; next came transportation; then came industry, and now it is the mer- chant and distributor that must CO., ordinate and place the country be- fore self. The government has all ready imposed it's strong hand over all of these industries and is more likely to extend it's grip than to limit it. Very soon the consumer will also be obliged to submit to regulation. Quite probably the farmer, who has thus far been exempt, will be obliged to make some sacrifice; and the circle will not be complete until labor has more fully recognized the country's needs and refrains from pressing its claims at a time when the nation is under abnormal strain.
 The more sagacious labor leaders have advised their followers not to hamper the Government with strikes when at war, and President Wilson's frank but kindly advice to the Labor Convention at Buffalo had whole some effect. The threatened ship building strikes were declared off, and the big railroad strike Is not likely to mature, especially as the railroads are already under partial Government control and might be made entirely so in event of a strike. As a rule labor is distinctly and promptly loyal, and it looks as if the exceptions would 'be obliged to respect public opinion and public interest.
 Liquidation has continued un- checked on the Stock Exchange. Ere quent rallies occurred, apparently the result of good support, but always tol- lowed by fresh selling waves. No reason for such universal selling could be discovered. except lack of icio oJIt offset sellers, Short selling was not conspicuous. The Stock Exchange authorities have seen fit to place very severe restric- tions upon short selling. The purpose was undoubtedly commendable. Any excessive demonstrations on the bear side in these times would be distinct iy harmful. On the other hand, req sonable short account is usually help ful. inasmuch as such transactions always create a potential buying force of real value in case of panic. The present depressing factors are numerous Chief of these was the marketing of a vast mass of govern
 nent bonds in so brief a period, over taxing the absorbing power of the public and imposing an extraordinary pressure upon banking institutions. Large quantities of investment secur- ities had been violently dislOdged to facilitate taking our government 1s- sues in the belief that they could be repurchased at lower prices later.
 Other causes of depression, such as vanishing war profits, increased taxes Government regulations, etc., are all familiar and have been largely dis counted. As repeatedly stated Tn these advices many prime investments are selling considerably below lntrln- sic values. Nevertheless, the exalted confidence which existed a few months ago has given place to an under current of tinnidity, mainly arising from fears concerning the prolonga- ton of the war Tn effect, we have had slow panic; yet with practl- callv no disaster of consequence. When we entered the war our Stock Exchanges did not close, no minimum prices were esta blished, and no mora toria. In fact none of the protective devices resorted to in Europe to stop panic when they plunged into war have been necessary here. Instead we have been pouring out money and credit without stint, to finance our Allies as we'll as ourselves; all of ! which demonstrates that we possessed greater strength than we knew, and that we are reaping the advantages of financial preparedness, unexampled resources and a fortunate remotenesS from the struggle Had we been drawn suddenly into the vortex in
 1914 along with other Powers, a very different tale would have been told. Fortunately when the crisis struck it found the nation wonderfully strong in banking power, and thanks to financial preparedness, the ordeal has been met with surprising ease and with no present prospect of insur- monntable difficulty
 The war is destined apparently to last longer than anticipated, and the strain upon our resources must cor