The Bridgeport evening farmer., 1917-07-09
HENRY CLEWS
 WEEKLY LETTER
lclews Weekly Letter.)

vovernment activities. Government regulation has come with rush Tn all directions; in the office, in the shop and in the home. There Is scarcety any sphere, public or private, into which the long arm of the govern rnent does not go, or shortly will go; and this movement has far exceeded the expectations of its most enthusias- tic deyotees. Much of this new leg1s- lation is accepted as a necessary patrl- otic sacrifice Little thought IS gwen as to its permanence after the war Some of 1t will undoubtedly be repeal ed, while considerable will remaAh. For some time past industry has been mobilized for war purposes, ana t tnls week two very important measures are about to pass-the War Tax 6lli and the Food Bill Capital and labor alike are feeling the pressure from this new Legislation, and in the vast majority of cases both patriotically s,abrnit without question. In all prob abilitv industrial mobilization Is ap- proaching completion. Several or the 6rincipal mineral industries have been placed under government con trol: agriculture is rapidly being drawn under the same influences, food. wool, rubber, etc, having al ready been placed under control ana nov the bringing of cotton into the fold is under discussion, although for a long period 1t was expected that tnls staple would escape owing to the large free market in which it is conducteo- Thus far government control has worked with relatively little friction thanks to our prof1ting by the experi- ence of other nations, though lne question of prices appears to pc one most difficult one with which to oeaA- In the minds of some ind1vlduals, the law of supply and demand mas com plstely broken down under the stress of war hence the call for artificial re1,,lation comes with increasing force. naturally, from those who feel present excessive prices most keenly. Imitation and high prices always foi- low war, being the inevitable se- ouence of waste and destruction The roxernment may be able to control illeedtimate speculation. and possipiy establish maximum prices with some success; but thus far all efforts 10 control Or actually fix prices nave been unsuccessful, even in Great Brlt- ain. where the attempt has been mage ,1pon reasonable lines and under fa- yorable conditions. It Is finally be- einrifng to be appreciated that price axinp bv governmental authorities is in direct conflict with the inevitable law of supply and demand. We are now finding that in ordinary times the quickest and surest means of increas- ing the supply is to advance the price to those who want commodities more than money. When prices rise to ex- tremes they soon correct themselves provided there be no artificial proven ton. YBut, if there is such prevent1on' ' But, If there is such prevention, sucn as monopoly. corners, excessive spec ulation, etc, then the government is fustified in intervening. If today the rovernment were to arbitrarily reduce the price of steel, or copper, or wheat, or cotton. 1t would probably do more harm than good ehrough forcing the shut down of high cost producers. thus lessening the supply and so az grayating instead of relieving bad situation. TO arbitrarily cut down the prices of the low cost producers would limit profits, it is true; but 1t would also decrease supplies and ln- ! tensify rather than mitigate the crlsls- When people want commodities more than money it is best to let them take their choice, leaving the final adjust ment to time. There may be a few cases, very few, where. the govern mont should step in ito alleviate crisis, particularly in food corners but as a rule artificial cures only make matters worse by violation oi natural laws. which in the end work ont their own solution more surely and more satisfactorily than can be done by any government. It is to be hoped the Administration will ge slowly in the matter of price fixing because if profits of low cost produ' cers become too great. as a war meas ure they can easily be offset by taxa ton.
 Failure of the Interstate Commerce Commission to grant the railroads tht desired 15 per cent. advance in rate' was disappointing, though not sur prising. Moderate concessions were made to some lines, but not sufficien to compensate the roads for the extra cost of labor. materials. fuel, etc. There is consequently but one thini for the railroads to do. that is econo rnize. Already several hundred train
 have been withdrawn on the Pennsyl vania, New York Central. New Ha van. Erie and other lines, and nor lines will follow their example. Mean while the roads must keep up thei service; also their credit, if they ar to raise funds for necessary improve ments and expansions. Railroad de 1. velopment at present Is at a stand still and a considerable mileage is Il receivers hands. The country 1 growing, traffic is congested an managers are confronted with man, serious and perplexing problems. Ma
 railroad earnings for 72 roads report ed net revenue of over $48.000,0 ,000 against about $47,000,000 a year ago A number of Western roads show sat isfactory gains, ane these facts ---- doubtedly had much to do with tn
 decision of the Interstate Commerc Commission. On the other hand. som of thesEsastern lines made very poo
 exhibits in May. New York Centra showing a loss of $2,900,000 net an
 Pennsylvania loss of $1,0O0.000, an
 this in both cases in spite of larg gross gains. The effect of the deci zion was partly discounted by the fac thas the twenty leading companie wee selling at about 92, or Is point below last year. The twenty leadin { industrials are selling at about 93, o
 { points more than 8 year ago.
 This market has apparently abou discounted for the lime being our en
 NY into war. The success of the Lib