New Britain herald., 1917-07-23

Henry Czeus
 Weekly Letter

New York, July 23.-The third an-
 niversary of the great war is close at
 hand. It will show changes infinitely beyond anything anticipated. In the political, the economic and social worlds new conditions and new forces have been created that could never have been foreseen. With the mili- tary aspects of the war we are already
 painfully familiar. War itself, has
 been revolutioniZed and is still being
 waged on a scale never expected and
 with a bitterness undreamed. In the
 political world the most remarkable
 changes have arisen through innum-
 erable expansions of government &C.,
 tivities. Practically all the bellig-
 erent governments have plunged
 headlong into both production and
 distribution of many necessities, to
 prevent exploitation of the public by the few. as we'll as to secure more
 efficient conduct of the war. It was very early recognized by the rulers of
 all nations that high prices and pro-
 f1teering would incite political unrest at home, and make it more difficult for the various governments to carry on the war. Germany was already committed to governn ent control in advance. Great Britain despite her
 national devotion to individualism quickly jumped into control of ship
 ping, railroads and the production and distribution of many staples, such as copper, wool, rubber, food etc., etc. This control was necessary, not only to shut off supplies from Ger
 many, but to insure them for her home use Other nations followed suit, including ~the United States, which, since entering the war, has not delved quite as deep as other nations into government control of industry. The movement here, however, has proceeded on different and rather less hazardous lines, because we have benefited by the experience of others and our dangers have been less acute. Between government and people in this country there has been far moro cooperation and much less cOm- mandeering than was the case abroad. Our railroads are voluntarily working as a unit for the government, Ceceiv- ing pay for their services; while the British government seized control of her railways, obligating them to ren- der military service free. Great Bri- tain also commandeered a large per- centage of her shipping; while we or ganized a shipping board to increase the output of ships. Great Britain assumed control of the distribution of many staple articles, and has been unsuccessfully experimenting with price fixing; while we, on the other hand, are about to regulate our food supply and the export trade, leaving the matter of price fixing it is to be hoped to further discussion and ex- perience.
 American business today faces in numerable uncertainties owing to the revolutionary methods evolved by the war. American politics are equally in a state of f1ux. Many old issues have completely disappeared, and not a few new ones will do likewise when peace comes; so that no one can tell what the final outcome will be, except that big steps are inevitable toward the democratization of industry. Europe, too, must subsequently pass through period of economic reconstruction in which many old methods and institu- tions will be swept away, resulting, We trust, in wider industrial and com mercial liberty for the entire world. The fewer the restrictions between nations, the greater the chances of permanent peace. What the worlds political developments will be cannot be estimated, except that better democracy is in prospect, which should imporve social conditions and establish a new and sounder civil order than the one so suddenly dis ruptetd at the close of July, 1914.
 The local money outlook has son.s- what improved. Call loans touched ten per cent early in the week. but subsequently declined to more normal rates. The stringency was largely due to the heavy decline in surplus re- serve, which resulted in very heavy withdrawals of Government deposits to pay off about two hundred million treasury notes, and particularly to the changed methods of figuring the na- tional bank reserves, the required per centages of which have been reduced, and which hereafter will be held ex- clusively in the reserve banks. The easier conditions in money were af- fected by renewed capital applications; several large corporations offering issues this week which aggregated over $3O,OOO.OOO. It is evident that concerns requiring capital will have to make their bids before preparations for the new government loan begin. The financial situation is further en- phasized by the fact that these a D. plcations appear to be possible only in the form of short term obligations on or about a six per cent. basis. The latter rate speaks volumes, and has brought up for discussion as to the best time for the new bond issue. It is quite the general opinion that the issue of the loan had, better be post poned until October in order to en- able farmers who will then have mar keted their crops to surscribe more freely.
 Business conditions continue much unsettled by the situation at Washing ton Delay of legislation affecting