The Bridgeport evening farmer., 1917-02-05
HENRY : CLEWS
 WEEKLY LETTER

The latest German submarine note caused severe bzreak on the StocH Exchange and inflicted a v1olen' shock on all the commodity markets most affected by war: SubsequentiS there was a sharp recovery m prices but the tone was unsettled ana splr' 1t of apathy prevailed pending Iresn deyelopments in the international si'' uation. The relations between Ger many and the United States are more critical now than at any ume since war began, and what the out come will be is beyond safe predlction It threatens to draw other neutral na- tions into the whirlpool' Incluolns the United States; 1t certainly proves Una Germany is driven to desperatioil which in all probability Will master the end of the war. Hoy GermanS is going to benefit by the Hlui'ipis
 ing of her enemies and losing tne friendly interpretation of the O ni,eo States cannot be seen. Surrlce IL U say that with such weighty uncertaln- ities confronting the world all DUST ness engagepents will nave Io - made with even greater caution lna' hefore. All Europe is setthing With ..L.n..rahIe passion and bitterness, bent on wreaking its destructive forces to the uttermost. What will happen between now and the eno ol +l,a war is bevond human foresight.
 Home trade, apart from war 1n- fl,,ences is in satisfactory condition. Tn January the new charters for com1 nanies of s1.00O,000 and over aggre- rated sa44. .OOO, 900, compared with s270. 00O. 900 a year ago, when the to- taI was abnormal1y increased by the ;nclusionS of two big concerns having q combined capital of $110,0OO, ,OOO. These new incorporaSrons reflect the large profits last year and the revlval of enterprise. General business IS sound and is usually conducted on conservative lines; credits are not over Appended, money is easy, collec- .tions are good, labor is well employ ed the steel industry continues ac- +ive and the outlook for 1917 is hope f,,l. despite the probable early loss of war orders. The agrlcuitural classes are exceedingly prosperous; nrobably more so than any other farmers in the world, and there IS every reason to expect that they will ef,ioy another profitable year. Bus1- n,,ss will naturally be affected should we be drawn into the European strug- gle. but this will be felt chiefly In the East. which naturally has jcloser relations with. Europe than the West, although the latter cannot escape the reflex action.
 Of course war yorders will cease when peace comes, if not before. Our exports during the fiscal year ending June. 1914, were $2t330, 100000, com pared with $4,272, 900, 900 in the same period of 1916. Of this increase, amounting to $1,942,000,000, consid- erable was due to imitation; much to war orders, and mot a little to fn- creased shipments to other countries which had lost their usual source Of supplies. There was an increase in exports of over $90,000,000 in horses and mules, which will probably not be maintNned. In sugar there was over $75.0Qo.a0O, in brass goods near 1y $160. 100000, in explosives over $450, ,000, ,00O, and in breadstuffs. $780, OO,O0O, not to speak of many other important gains that cannot continue. If there were no compensations for the disappearance of these gains, the result would indeed be alarming, but it Is quite evident there will be a marked recovery in directions now suffering by war Our cotton, cotton exports for example, which fell from $610, ,000, ,000 to $374,000,00O, should certainly show a big recovery. For our farm produsts, there will also be a heavy foreign demand at good prices, although release of Russian wheat supplies will be a factor of importance. The probability Is that there will be a shortage of food in Edrope for at least one if not two years. The property loss in Europe resulting from the war has been es- tfmated by competent authorities at about $6,0OO, 100000. This huge fig ure covers. only buildings, machinery, rO8ds, briges, etc., in the war zone. In addition, it must be remembered that outside of the war zone industrial plants have been run at high pres sure for months with little chance for repairs and European and British railroads and steamships will require extensive overhauing. Consequently for long period ahead, Europe will be strenuously occupied with recon struction, so that Great Britain and ourselves will be the only nations able to supply the wants of other parts of the world. Our manufacturers can, therefore, confidently calculate upon receiving liberal share of for eign orders after the war, especially for the innumerable forms of steel products in which Americans are par ticularly skilled.
 Previous to- Germany's last subma- rine note, the market was more or less unsettled by peace prospects, the leak investigation, the proposal to tax profits exceeding per cent and the indifference of Washington to needs of the railroads. As to the leak in vestigation, nothing of much impor- tance has thus far been divulged, and the results seem very inconseQuentia1 when compared with the tremendous efforts to unearth some morsel o1 scandal. So much for political ani- mus which was'sef apparent on both sides, the whole affair being undigni- fled and unworthy the noisy atten- tion 1t received from a great govern ment. The proposal to tax profits in excess of 8 per cent is more seri- ous matter than generally realized and again illustrates how often leg islation is prompted by prejudice rather than reason. This tax should receive universal protest. It is un. just because it aims at class; it is also highly sectional because some representatives openly support it or the ground that the tax will be paid by other constituencies than their own. This is downright dishonesty The tax is necessarily too inquisitor. tal,f and would operate with much