New Britain herald., 1917-11-03
Henry CIews ,
 Weekly Letter
Especial to the Herald )

New York, Nov. 3.-The financial district continues to be dominated by operations connected with the war. Successful placing of the second Lib- erty Loan Is a source of much grati- f1cation, having proved the strength and the abilities of New York as a financial center in a most remark able fashion. This must be attributed to the loyal cooperation of the bank ing fraternity throughout the whole country. Thanks to the operations of the Federal Reserve law and the con- centration of banking resources, the huge strain has been met with scarce ly ripple in the money market. Business transactions with the banks have gone along much about as usual, owing to the skilful conduct of af- fairs by the Money Committee; only s1OO,ooQ,OoO of the $200,000,0oo allot- ted having been used for taking care of business interests.
 The outlook for the money market
 is satisfactory. Crop requirements and autumnal demands have been met without difficulty and time money is available to all good borrowers at reasonable rates. One effect of the huge bond issue Is seen in the new security issues, which in October were barely $5o,0OO,00o, or about half the amount of a year ago. Since
 Jan 1 domestic capital issues have been reported to the amount of $1,-
 400, 100000, a decrease of $425, ,O00,- 900 compared with the same ten months last year. Of course, there
 were other restraining influences up on new enterprise, such as the un- certainty of profftS increasing taxes, advancing wages, new trade regula- tions, transportation difficulties, etc.. all of which can be traced to the war. Whether money will flow more freely into new enterprises during the next few months, remains to be seen. The countrys savings, however, are being
 largely absorbed by the Liberty Loan and other additional loans will follow in due course of time; so that immc
 diate conditions are not conducive to new f1otations.
 The unfortunate plight of American railroads is being daily forced upon public attention and will require some sort of immediate relief. Under the strain of war traffic, equipment IS rapidly running down, while the 1m- pairment of railroad credit by inaction of the Interstate Commerce Commts- sion prevents necessary replenishment- If the roads are to meet the require
 ments of ordinary traffic and the ex- traordinary emergencies of war, relief is imperative. Within few days the Interstate Commerce Commission is to give another hearing, and there is a hope that just and reasonable ad- vances will be allowed to offset present high costs of operation, If the relief c~ %@ Hn 6 q the injury to. their credit from the starvation treatment imposed by the commission. Net earnings of several of our most substantial roads are. in spite of strict economy, falling to point that threatens reductions of dividends. The effect of these condi- tions is to still further damage their credit. rendering it impossible to at- tract the new capital needed for ex- tensions and Improvements.
 Vast sums have been expended to meet the increases in wages, while relatively small amounts are also necessary to maintain dividends and support railroad credit. Government regulation has thus far proved miserable failure, chiefly because the rate making power has been in the hands of prejudiced and inexper1- enced men. The only step for the government to take is to give the rail- roads a fair chance, which is now denied them. The present operation of the transportation companies as unit is producing marvellously good results, both for the public and the roads; and there is no need to con- sider government ownership, pro- vided the government pursues an in telligent and fair-minded policy. Our railroads can easily be operated as a unit preferably under some sort of Federal control, instead of the present confusing and destructive multiplicity of state regulations. American roads are valued at something about