The Bridgeport evening farmer., 1917-12-17
HENRY CLEWS
 WEEKLY LETTER

AllObAOI WOOh OA
 has passed over the financial district Growing pessimism is, conspicuous fact, as is the consequent lack or buyers. That there is very con siderable buying power in existence despite the tremendous absorption ol money by the government, is conceo- ed; but it is easily offset by the per sistent outpouring of stocks. Pup lie opinion, for the time being at least has given up hope of an early enolng to the war This explains the depres- sion in part. Reports that the ter mans are preparing for another big drive at the Western front added to the prevailing discouragement; al- though the belief in hopeful circles was that the enemy was engaged m one of the final desperate efforts to drive the Allies back before American armies arrive in France
 Al the moment the war is growing in intensity rather than diminishing Germanys activities are certainly ln- ereasing, presumably with view of making a supreme effort. Br1ta1n's drive against Cambrai has been check ed. Italy is actively resisting tre- mendous attack. Russia is in the fhroes of civil strife. Spain and For tuEal are both endangered by the fires raging about them, while all the neu- tral countries are more or less ID danger of being drawn into the con flaRration. In the United States the war clouds are growing thicker ana thicker. The storm is here, though not yet raging in full force. As our young men depart in increasing num- bers for lover there," we grow more and more serious; and our apprecla- ion of the great cause, anc tAe1r supreme sacrifice, becomes deeper and stronger When the casulty~llsts come back. we will feel more keenly the price required to make this bet ter and a freer world, if not TOT our seIves for those who come after. NO wonder we become soiemn, serious and disappointed But there should be no yielding to discouragement' and no gloom. Victory is certain provided we ''carry on" our part with unflinching hope and courage.
 With the opening of Congress the railroad question has become a prop- lem demanding prompt solution. At this writing, the outlook for nation wide government control through nresent executives and some form of Government financial aid. Such is be- lieved to be President Wilson's pre- ference; although not a few impartial judges believe that unit operation un- der a pooling system and government euarantee of interest on required new Aapital would be the best alternative for all parties. The Presidents plan, whatever its scope, may be adopted because of his extraordinary sway over Congress. It would at least have this advantage; that it would post pone the discussion of government ownership indefinitely, or until af- ter the war, when calm consideration would be more possible than now. Private operation under government regulation is a much safer method than, thrusting further heavy respon- abilities upon government already overloaded with problems and creak- ing under war burdens. The plight of the railroads is more desperate than generally recognized, which. of course, explains the heavy selling of the, last few weeks. It transpired be- fore the Interstate Commerce Com IlllD6lOh ACdI4A6c IhoS SAAO OAPNAASNo of the Eastern roads are running at the rate of $27s, 1000, 900 ahead of last year; $103, ,0O0, ,000 of this being for labor. sSe, e,00o,oo for fuel and $S9.- O0, 900 for materials. This growth in expenses of 27S,000,00o does not include increased taxes, higher inter- est rates or present excessive depre- citation. The Interstate Commerce Commission has already granted ad- Yances in some sections aggregatfng about $9S, 100000; which, with other advances in prospect, will still leave shortage of SIPS, 3,000,000 to be made up. Upon these figures it Is evident that the railroads will be obliged to ask for much more than 15 per cent especially as expenses promise to 1n- crease rather than decrease. Labor and materials alone are costing the railroads today 25 per cent to 30 per cent more than a year ago.
 Stock market weakness was quite as pronounced in the fndustrials as among the railroads. The fall in the industrials must be partly due to ex. aggerated apprehensions. That price fixing and government regulation would stop profiteering was knowr long ago. That increased expense. and heavy taxes would cut deep Into profits was equally recognized. Ina prolongation of the war would force general economy, restrict consump ton, absorb the country's earnings check new enterprise and keep com modities on high level were alst matters of common knowledge. Whe1 it Is remembered that the industrial never fully reflected the effect of wa profits and were never unduly inflat ed, it would seem as if the recen decline had about discounted changed positions. There has been compara lively little war imitation of securitie in this market; high prices having been chiefly confined to commodities Yet the shrinkage of values in tn United States, which has benefite' more than any other country by tn war. has been far heavier than il Great Britain which suffered. mucl and gained nothing thus far from tn purely economic standpoint.
 Money, both call and time, continue firm. There is no lack of loanabl funds, but bankers are discriminatin
 sharply as to both size and characte of borrowers. A feature of note the new departure of the governmen in making reasonable advances ol contracts. Until recently responsibl firms had difficulty in starting ne1 contracts, and financial aid was nece earily sought from bankers, Th
 British government oa the other han : has been liberal in it's advances { good parties from the starts and ou sovernmen will probably now do like