The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-01-08

hard to be overcome, and since July
| first there has been a further harden
ing in price, owing to the depletion
! in stocks and the great increase in
| building operations. The scarcity in
| pulp-Wood was, in particular, critical,
| the customary summer accumulation
| Of stock not being witnessed, but on
the contrary, an actual decrease.
| When, in addition to all this, ref
erence is made to the heavy business
| done in war munitions throughout this
| region, to the fact this has been the
heaviest year on record for building
| construction and for retail trade, it
| will be seen that the past twelve
months have beene period of aston
| ishing prosperity in New England The
swing has been so great that nothing
| has been able to retard it. Many
things have arisen to occasion appre-
hension, but industry has gone on in
creasing in volume, in spite of them.
1t has been period of increasing div
idends. The investment markets have
been active, and notwithstanding the
increased volume of general business
and the strong advance in commodity
prices, money rates have remained
comfortable at this centre and
throughout New England.
European Development.
New England has followed events in
Europe with keep interest, and has
drawn far more encouragement than
disbursement from them. The sub
marine episodes in the early part Of
this year, and the Nantucket affair
in October were not taken very seri-
ously as affecting our industrial inter-
ests. The French reverses, which be-
gan at Verdun on February %, occa-
stoned no real apprehension here,
while, on the other hand, the notable
French victories at the same point
later in the year were regarded as sig
nificant Of the real outcome of the
war, as were also Brusiloff's brilliant
campaign in the summer and the AL
lied drive on the SOmme. Some
months ago Ambassador Gerard re-
turned to this country with, it was al
legged, certain peace proffers, but the
importance attached to this fact was
slight and at this writing it cannot be
said that the recent and more defin-
tie overtures by Germany have aroused
a genuine expectation of an early con-
clusion of the war. New England
appears committed to the belief that
the hostilities are far from an end, and
it is fairly safe to say that the general
view is that when the end comes it will
not restore the status quo.
The economic occurrences in 1915,
incidental to the war, have made a far
deper impression on the business mind
than have the military episodes-such
for example, as the mobilization by
Great Britain of her American cred
it's. the economic conference of the
Allies at Paris, the f1otation here by
the Allied belligerants Of national and
municipal loans aggregating hundreds
Of millions Of dollars, the extraordin-
airy increase in American exports, and
the astounding inux Of foreign gold
into this country.
The War And Prosperity.
These events have created a situa-
ton in the light of which the future
Of American finance and industry
must be read. What, in particular, is
going to happen in 1917? The an
swer to that question depends on two
things, at least-first, how much long
er is the war going to last. and, Sec
ond, how much more can the people
VI Il1C OI1tco 0ldICS SSduO III CAC way
of rising cost of living?
If we may assume that the war will
last throughout 1917, it is safe to say
that, other things being equal, indus
trial activity in this country will re-
main at a very high level. The phrase
"other things being equal has refer
ence, Of course, Ito the cost of living.
Three months ago it was figured that
the food cost for the average family
in this section was 80 per cent. higher
than on the corresponding date of
1915. In some other commodities the
advance is even more marked. The
shoe is pinching every one, and many
economies have already been intro
duced. Producers have been getting
new light on certain points. Some ar
ticles that had been marked up to
take advantage of the general rise in
prices have only very recently been
marked down again. There is very
general feeling that we have come
pretty close to the prohibitive point.
In other words, cognizance is being
taken of the fact that the 1916 adj
vances in wages and salaries have
affected only a minority of the peo-
pie, and that the majority, in whom
resides the larger part of the purchas-
ing power of the country, have been
forced pretty well up to the limit of
endurance. Promises have been held
out to them of downward tendency
in prices. No dates have been fixed,
but the spring months have been
mentioned as a likely period. After
all, the great Industrial activity of
1916, though originated by the war,
las been perpetuated chiefly by the do
nestle demand. and. if it is to continue
at the present pace throughout 1917, |
it seems likely, in the opinion of sea-
soned observers, that greater defer-
ence will have to be paid to the pur-
chasing power of the masses than in
recent months.
Orders Ahead.
But if we can set that consideration
aside, 1917 can be forecasted in very
ion in this part of the country is that, |
encouraging terms. The best, opin-
even if the war should end in 1917, |
the prosperity of this country would
not be materially impaired. Our va
rious mills, to say nothing of the mu-
nitions factories, have a great many
orders running far into 1917. And, |
except in the case of munitions, it is !
not held that these orders will be diff
fcult Of replacement even if the v'ar