The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-06-14
of Finance
wATsoN's WEEKLY LETTER

WATsoN,s WEEKLY LETTER
Despite Russian uncertainties which
still act as a restraint on enthusiasm
under the influence of the financial
activities associated with the Liberty
\ Loan and a favorable crop report py
the government, the stock market mas
advanced, with its pace made raster
by the great success of the conscrlp-
ton registration. In prospect Is the
y closing of the books of the LAberty
IAN accompanied by, announcement OF
spversubscriptions now believed TO De
7 esrtain-something that would be ia
Avorably looked upon in market circles.
A little further along we must consid-
er the expenditure of the proceeds
! of the Liberty Loan. We believe this
! win expand business activity to a
lrreater and greater extent as the con-
! fIfct works toward a close, and at such
K Z, time would be on guard against the
LSnflatoin anticipated by economists.
X, The metal stocks continue to attract
iBpeculative preference on account OF
1.-The fact that high authorities hold that
the weight Of metal to blast through
German militarisn Is the one thing
(which will speedily win the war. Tons
tof steel and copper must be hurled
'ugainst the Kaiser's defences. This
tmeans big earnings for United
tk3tates Steel. Bethlehem Steel, RE
lpuablic. Iaclawanna and Colorado Fuel
in the steel group group. and in the
"copper" list Inspiration, Anaconda,
Utah and Chino will add to revenues
land treasury cash already larger than
LAT any time in the history of the COM
tpanies. Westinghouse Electric is re-
Hported to have been well bought dur
Fling the week
we think Registration Day may be
1 safely described as one OF the greatest
days In American history. The enact
I r1ient OF the Conscription Law in q ma
q lion devoted to individual progress
frather than otherwise, IN a land where
flfberty Of personal action has been q
fpohtical slogan for years, could but
fbe an experiment, The truly phenom-
email success centersin and proves one
toutstandfng feature United America.
RYounx America has responded nobly
ITO the call Tor service in q cause which
has not yet been brought fully home
To a large number Of citizens Ma
tiona1 security is assured. We need no
N longer tremb1e for the future.
*N AZ IL now ROMANS I0E Lie tl4tOSkOAo VA
!, the country to respond as well to the
Liberty Loan-not the less important.
It is q volunteer proposition, this Lib
ertv Loan. There is no drafting of
capital. But evidence is INTO lacking
that the great capital interests of the
country are patrfotically coming for
ward. stimulated by their example,
instruction and inspiration. the small
investor, we believe. viii not be found
wanting Many men and much money
win be needed to bring victory. The
former are now assured. The latter
must not fail And we believe 1t will
I not
sThe financing Of war must come
from the peoples income" says the
Mechanics & Metals Bank in an analy-
Bis of the taxation question. Bonds
must pass beyond the bankers to
Thousands OF people who have never
bought bonds befOre. War loans, to
Be completely successful, must be po-
X pnlar, and taken by the people. It is
the wage-earners who must be reach
ID, not the banks Leading econom-
5sts are strong In their criticism OF
the House war taxation bill, declaring
itswrong in principle, unscientific and
calculated to throw business into con-
FUSION That well-known financiera
Jacob H. Schiff, says: Taxes in an
aggregate altogether unknown hereto
fore win have to be imposed; but such
taxation need be scientific in charac-
Ger in order that the burden become
10 distributed that business initiative
and activity do not become destroyed
8 or even seriously handicapped, for il
that be the result, as Is not unlikely
of the tax scheme before Congress
the consequence to the country will be
very serious" A prominent American
rays that mo mans patriotism rises
higher than his realization Of the need
that his country has for him." Taxes
bring q better understanding of the
4 1nterdependence Of the individual and
his government. "Conscription makes
good citizens" by creating a greater
Prospect for law and order and impart-
4ng q sense Of duty.
The time is drawing near-far toe
knnuch prolonged-when the Interstate
commerce Commission will hand dowr
Nn decision in the railroad rate case
ETfnal arguments are scheduled to take
Rplace this week, and a verdict should
RHoon appear thereafter. Comment i.
Hreely made in financial circles Of higl
grade that rule by commissions ha.
rVroyed 1rseit Idllufe by forcing IOr
Emerly efficient railroad and publ,
E5tility organizations to the verge O.
bankruptcy without providing CORES
xponding Improvement In service to tn,
npublic. There is no doubt in oul
,sninds that some RELIEF will be granted
ITO the roads. The vital need to tn.
Enational defence OF maintaining tn,
s-carrfers in a state of efficiency mus
fbe apparent now to the most bigotet
ycommissioner Relief of a REASONABLE,
Z character would improve the credit O.
kthe railroads to an extent that would
Influence absorption Of standard rail
iroad stocks on a substantial scale be
cause OF the ability to make goot
( earnings under fair conditions Their,
are signs that eastern trunk line rail
road stocks have been boL-f1t latel,
| in the belief that higher prices ar,
In STORE for them following a decisio,
by the Interstate Commerce Commits
Eion- New York Central Pennsylvan
\ Ia and Norfolk e. Western are report
cd to have been well taken. Atchisol
! and Union Pacific among the western
rails should respond to a general,
improved rate situation, as their earn
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