The Bridgeport evening farmer., 1917-11-26
HENRY CLEWS
WEEKLY LETTER


prevailed in financial circles as re-
suit OF the brilliant success of the
British on the Western front and the
Gnecking by the Italians of the Aus
tro- Germans. These two favorable
fkctors exerted a double effect, fol-
lowing a fit of dependency OCCASION
ed by the collapse of Russia and the
setback of Italy. Since the war Is
now Recognized as the dominant fac
tor IN all financial operations, the one
great question continues to be, when
will the end come? No definite an
zWer is possible, and those best IN
formed are the most guarded in their
replies Whether it will be ended by
al smashing victory, or by sheer eX-
haustion of the weakest side cannot
H. foretold: but certain facts stand out
with undisputed clearness: The Cen
troll Powers grow weaker day by day,
though still capable Of prolonging the
fIrht The Allies, on the contrary,
Are erpwing stronger daily, in spite
TX the breaking down Of Russia and
w check to Italy. Great Britain is
now at the highest point of efficiency
iii her history anad France shows as
undaunted q spirit eas eyer. The Uni
ted states is making strenuous ef-
LXLL8 IN. pIGpdIdllOh anu WILL DS ~
ing her full share much earlier than
originally anticipated. To such sit
uation there Is only one end.
public opinion is at last awaken
~ to the fact that something must
he done for the railroads. So, too,
are public officials. Either the rail-
roads must suffer paralysis through
lack Of funds. or they must be allow
&d to earn adequate profits for main
xHnanre Of credit and purchase of ne
@&nsities irresponsible idealists who
4rrue that dividends should be reduc-
8d for this purpose, are unaware or
the Consequences of what they advo-
cnte The amount saved by reduc-
iuE dividends would be inconsequen-<
tai, compared with the requirements
OF the railroads; the destruction of
credit which such impairment Of d.
ridends would involve would be dis
ostrous It Is estimated that our rail-
roads require not less than billion
dollars to put them in anything like
proper condition to meet present
emergencies, and this cannot possibly
- secured If the roads are not per-
rnitted to earn fair returns. Trans
portafion lines cannot hire capital for
nothing. but must pay rates CORE
E5ondfngIy to other industries. AS
fhs requested 15 per cent advance in
railroad rates will probably not be
sufficient under latest developments, 1t
is proposed to ask greater advance;
anna the idea has been advanced that
The government should provide assis-
lance, either in the form of a direct
loan or the guarantee Of interest on
such issues. 1t Is also suggested that
Il the railroads are to be SO thorough
Is regulated, labor, too, must come
under government control. These lat
ter suggestions are not desirable, ex-
cept as last resort, since they plunge
the government more deeply into pri-
waite enterprise at a time when its
whole energy should be devoted to the
single purpose of financing and man
4xlng the war. For similar reasons,
kovernment ownership is also imprac-
<1cab1e: and the only sensible and
16&s1bIe policy is to allow the railroads
ko earn fair profit; restricting gov
&xnment responsibilities to such regu-
IxEton as will secure the highest de-
kFee OF efficiency. This 10 not a time
ID multiply the burdens of govern
x1ent which are already too onerous
Tor the best results.
High prices, trade regulations, price
fixing, enforced economies and lessen
ed Remand for non-essentials are
causing a slowing down in some lines
Of industry, notably in luxuries,
Building. etc. In spite of such condf-
lions, trade as a whole continues very
active and promising; particularly in
the agricultural districts west and
eouth, where high prices for farm
products induce an extraordinary de-
xree Of local prosperity. High wages
1n many lines of industry are also
having stimulating effect. Yet.
there are not a few important -excep-
tlons. Food distributors are much
unsettled by regulations forbidding
profiteerfng and by scarcity-actual
ot threatened-of many necessary
prQducts. The demands Of war up
on various Industries inevitably cause
great irregularity. The plight of our
railroads has just been alluded to.
Shipping the world over is badly de-
r7ora1ized: and the dizzy profits of the
16st two years dwindle rapidly when
ut off against stupendous submarine
T. 1csses. Our coal industry is passing
through a crisis, not so much from
scarcity as srom lack of transporta-
fion. And now the steel trade after
q period of fabulous prosperity, is
having troubles of it's own. This in
dustry Is enormously pressed with
war orders. nearly 80 per cent being
thus engaged, directly and indirectly
and outside Industries are obliged to
nnrtan their takings. The scarcity of
transportation, of fuel and of coke is
n@rfously embarrassing. and in some
CAGES production has been cut as
much as SO per cent Some time ago
the price of coke was reduced one
half. and the supply has suffered since
as result; a serious menace to the
Droducers OF iron. Scarcity will be
found in many other branches of in
duetry showing that the world is
slowly but surely drifting into a state
of economic starvation. The only
prevention will be rigid economy and
Increased production. American la
Dor has .patriotically refrained from
strikes while the country is under
thcs train Of war, British labor did
likewise: in addition speeding up and
l6ngthening the hours of labor. with
fha result in some instances of In
dreaEfnE the national output fully 80
p@r cent in spite of the fact that one
ZENITH OF Britafn's population was in
1he ranks.
Many standard securities, both
stoc1ks and bonds, are selling much
below intrinsic values, and abnormal
.@..&> a <fr1la hava haan uayv Iaxc-a7u IfS-