New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1917-08-25
Henry Cleus
Weekly Letter
Especial to the Herald.)


from the governments soft coal price,
fixing proposals, which proved more
radical than expected and will prob
ably not be carried out to the, ex-
tremes feared in some quarters. The
cut in soft coal, though tentative, was
particularly unsettling and somewhat
prematurely accepted as an indication
of the future policy of the govern
ment. Action on hard coal, sugar and
other articles has been less drastic.
The administration is undoubtedly JUS
tined, as a war measure, in putting
some restraints upon the upward rush
OF prices and INSCRIPTIONS profiteer-
ing. 1t is also justified in buying mu-
/ nltlons upon as reasonable terms
possible: but as experience proves. it
is already treading upon questionable
ground, and interfering with uncon-
| trollable economic forces in ways that
may easily do more harm than good.
Price fixing, as in case of steel, is not
infrequently impossible. A price that
is fair at one time or in one place, is
quite unfair under other conditions.
Fluctuations are unavoidable in all
markets; costs of production vary and
! we cannot control articles of foreign
origin. 10 put prices down without
reason and to unduly curtail profits
checks production and throttles en-
terprise. There is no surer way of in
creasing supplies than by permitting
good profits, or vice versa, of decreas-
ing supplies than by destroying profits.
There are some things the government
cannot do and one of these is it can
not run the business Of the United
| Ctofn h,,f rI~ h
control it. If it confines itself to
checking extremes and to setting the
| example of paying fair prices for what
| it wants, and if it will foster CO.
| operation between industries and aid
| in removing impediments to distribu
| ton, that is about all it can legiti-
mately accomplish Price-fxing and
| industrial control have been attempted
| in Great Britain upon much wider
| scale than here for a longer period
| and under more favorable circum-
| stances, but the effort has thus far
proved a failure and is rousing great
deal Of opposition. in business circles
| Throughout England.
| General business is quiet, as usual
during the midsummer season. At
the moment this tendency is aggra-
| waited by the uncertainties injusted
through experiments in government
| control. In due season these plans
i will become more definite and business
| will undoubtedly continue to improve,
although ordinarily August is a month
| of deterioration. From many quarters
the advices are that the grain yield is
| large and quality good. Bank clear
! ings are running from 25 to 80 per
| cent ahead of last year which, allow
| ing for the advance in prices shows
that the volume of business is if any
| thing ahead of this time last year.
| Our monetary situation will bear
watching. Forthcoming huge bond
! issues will of course be the domina-
! ting factor. 1t must also be remem-
bered that present high prices for
| farm products and merchandise will
impose larger demands upon the
banks than usual when the usual
autumn movement begins. Values on
! the stock exchange have shown
| marked declines this week, owing to
| the price-f fixing policy of the govern
| ment, to the proposal to increase taxes
! on profits and to unfavorable news
| from Russia. The bears seem to have
| been considerably elated by recent sue
cesses, and there is still CONSIDER
able short interest extant. F'luctua-
tons will largely depend upon the
news from Washington affecting the
| COulIOl OF 1uuuStTy dIlp pl lCSS. IL Is W
be hoped the revenue bill will soon be
passed and that congress will adjourn.
Highly disciplined soldiers such as
| Germany commenced the war with,
will hereafter have to give way to
| the superiority of the big life-killing
| war machinery now in use, which
calls for skilled mechanicians. The
war is now a war of herculean ma
chinery, which makes 1t the more
! costly and desperate in it's slaughter
| ing powers while it lasts, but will
/ make it shorter in the end; therefore,
the side that has the preponderance
of facilities and money backing is
bound to win. For that reason the
| present war is not likely to hold out
through another severe winter in my
| opinion. The trenches will not af-
ford the protection to life on the
battlefield in the future that they
have in the past and the war has been
| prolonged up to the present time
| largely owing to the shelter Of the
| trenches.
The steady rise in power of the
! Allies and corresponding decline
among the Central Powers strength
! ems the hopes of an early peace; al
| belt the end OF the war is not yet in
view Germany is by no means ex-
| hausted to the point of submission to
the we'll known terms Of the Allies.
| Nor are the Allies yet able to de-
liver a decisive military blow. At the
moment their policy appears to be
that of wearing the enemy down; the
relative rise or fall in the strength
of opposing armies being of moro
significance for the time being than
the acquisitions of territory which
are geographically trif1ing. AS the
war goes on. talking and planning
| for peace become more and moro
defite. Opinion is divided as to what
the effect will be upon American