New Britain herald., 1917-09-08
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HARTFORD,
REGULATION
ARMY OFFICERS
SHOES
Henry CLeWs ,
Weekly Letter
Especial to the Herald>

New York. Sept, S-As indicated
in our previous review, the heavy
liquidation in stocks during the last
three weeks was due primarily to
fright induced by the radical outbreak
in congress. The evident desire on
the part of certain political cliques
to penalize wealth by confscatory
taxes whenever and whever possible,
the realization, too, that the era of
profiteering has about finished, and,
the government was to take over the
railroads gave the bears an unusual
opportunity. Professional raids were
frequent and successful, meeting with
no effective resistance from the big
holders Of securities. Unconsciously
the radicals in congress played right
and manipulators they most desired to
punish; but the foolish and misguided
desire injure wealth is unfortunately
still alive 1t dies hard, even in con-
6Iess, WIlcu ny lHlS tlIIle SHOuIu nave
learned that it is injuring it's own best
friends by such tactics. Whenever
capital is struck, It promptly seeks
kindlier environments; enterprise van
ishes and employment slackens. When
profits are attacked, savings decline,
there is less money to spend, and the
supply of capital is dried up at it's
primary source. That ignorance of
the simplest economic laws still rules
where reason should prevail is obvious,
and lawmakers go laundering along
in their confusing career, the public
meanwhile suffering from the folly
Of such experiments. Happily the
radicals were badly routed in the
senate vote on the Revenue Bill on
Wednesday, and the efforts to impose
a practically confiscatory tax on profit
a, practically confscatory tax on
profits proved a significant failure.
Instead of the measure in which it
was proposed to impose taxes on
profits of 70 to so per cent. the bill
as amended by the senate increased
the Federal taxes only 1850, 900,
a sum which can be raised without
any harmful effects. The senate as
a whole is evidently disposed to act
f3tlOnaIIN. Inc administration is
known to be firmly opposed to ex-
IRENE action, realizing full we'll the
paralyzing consequences of closing up
the springs of capital.
In the matter of price fixing the
government is also pursuing a rea-
sonable course. In no case, unless
it be that of soft coal, has there been
any radical changes from present
prices. On the contrary figures have
been allowed which will grant pro-
ducers liberal profits by preventing
erratic and extreme speculative f1uc-
tuations, a degree of stability thus
being introduced into industry which
should prove satisfactory to all con-
cerned. Merchants are thus being
freed from embarrassing uncertainties
and confident in the stability of prices
are more able to make plans extend
ing into the future. The public mean
while is protected from further ex-
tortion. while sufficient profits have
been allowed to slim ulate production.
To this extent the business situation
has been improved, although as stead
lily maintained in these advices, gov
ernmtnt price fixing is uneconomic,
unsound and can only be accepted
strictly as a war measure.
NO Change CGdll DC ItoOI uCI III lIlO
war outlook. Peace talk is very ac-
tive. 1t is apparently inspired by
consciousness of weakness in German
circles. no one believes Germany
is ready to submit to the terms which
are sure to be insisted upon by the
Allies, who are making vigorous prep
arations for a strenuous and decisive
campaign next spring A few StDk-
ing tendencies are obvious in current
events: first the rising strength Of
the Allies in men. morale and mu-
nitions, and. second, an equally steady
fall of the same in all of the Central
Powers. These contrasts in strength
between the opposing forces are
growing rapidly: they are materially
by the economic starvation
of Germany, and when spring arrives
with a big, efficient American army
fresh in the field, backed by practic
ally unlimited resources, then there
may be reasonable hope for a peace
dictated by the Allies; a peace that |
will be based on victory and based
on just reparatio and restitution. No
wonder the Central Powers would |
like to make peace and go home be- |
fore the storm which they brewed !
breaks furiousy upon them and gives
them a taste of the suffering they
have so cruelty inflicted upon others.
The advancing tendency in interest
rates is a constant though generally
overlooked influence in the stock mar
ket The colossal waste and Absorb |
ton of capital can have no other
effect than to produce higher inter-
est rates. Even with the enormous
accumulation Of profits. out of which
capital comes, the demands upon our
resources for ourselves and the Allies
draw money very seriously from new