New Britain herald., 1917-12-15
Henry Clews' Weekly Leffer
Especial to tho Herald.)

Special to tho Herald.)
 New York, Dec. 1b.--Anether week
 of disappointmenth has passed over the financial district. Growing pessinaism
 is conspicuous fact as is the con-
 sequent lack of buyers. That there
 is a very considerable buying power
 in existence despite the tremendous
 absorption of money by the govern
 ment, is concealed: hut it is easily
 offset by the persistent outpouring of
 stocks. Public opinion. for the time being at least, has given up hope of
 an early ending to the war. This ex-
 plains the depression in part. Re- ports that the Germans are preparing
 for another big drive at the Western
 front added to the prevailing dis
 couragement; although the belief in hopeful circles was that the enemy was engaged in Ane of the final des-
 perate efforts to drive the Allies back
 before American armies arrive in France. (.-. At the moment the war is growing
 in intensity rather than diminishing. Germany's activities are certainly in-
 creasing, presumably with a view of
 making a supreme effort. Britain's
 drive against Cambrai has been checked. Italy is actively resisting a tremendous attack. Russia is in the
 throes of civil strife. Spain and Por- tugaf are both endangered by the fires raging about them, while all the
 neutral countries are more or less in
 danger of being drawn into the con- t1agration. In the United States the war clouds are growing thicker and thicker. The storm is here. though not yet raging in full force. As our l bers for lover there," we grow more
 and more serious; and our appreeia- tion of the great cause, and their su- preme sacrifice, becomes deeper and stronger. When the casualty lists
 come back, we will feel more keehly the price required to make this a bet ter and a freer world. if not for our selves, for those who come after. No | wonder we become solemn, serious l and disappointed. But there should be no yielding to this Encouragement, 1 and no gloom. Victory is certain, provided we carry on' our part with 1 unf1inching hope and courage.
 l negotiations for obtaining the metal I to supply pressing war needs.
 With the opening of Congress the ! railroad question has become a prob
 lem demanding prompt solution. At this writing, the outlook is for na- 1 ton wide government control through | present executives and some form of 1 government financial aid. Such is be- ! Heved to be President Wilson's pref 1 erence; although not a few impartial ] judges believe that unit operation un- ! der pooling system and government 1 guaranee of interest on required new caplIal would be the best alternative 1 for all parties. The Presidents plan. whatever it's scope, may be adopte1 because of his extraordinary sway ] over Congress. It would at least have ] this advantage: that 1t would post pone the discussion of government | ownership indefinitely, or until after | the war. when calm consideration l would be more possible than now. 1 Private operation under government 1 regulation is a much safer method
 than thrusting further heavy respon- ] abilities upon a government already l 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 :
 mission hearings that the expenses of 1 the Eastern roads are running at the
 rate of $27S,O0O,OOO ahead of last
 year; $1O3,O0O,O0O of this being for
 labor, $S6, 100000 for fuel and $89.- 1 00O,0 900 for materials. This growth in
 expenses of $27S.000, 900 does not in. clude increased taxes, higher interest 7 rates or present excessive deprecia- ton. The Interstate Commerce Com
 mission has already granted advances
 in some sections aggregating about l $9S,0OO, 900: which, with other ad-
 vances in prospect will still leave a
 shortage of $12s,0o0.o 900 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. l especially as expenses promise to in-
 crease rather than decrease Labor
 and materials alone are, Jcostins the
 railroads today 25 per cent. to 30 per
 cent. moro than a year ago.
 l Stock market weakness was quite 1 as pronounced in the industrials as 1 among the railroads. The fall in the
 industrials must be partly due to
 exaggerated apprehensions. That
 price fixing and government regula-
 tion would stop, proflteering was
 known Qong ago. That increased ex-
 penses and heavy taxes would cut
 deep into profits was equally recog-
 nized. That pfoloneation of the war
 would force general economy, re-
 strict consumption, absorb the coun- try's earnings, check new enterprise
 and keep commodities on a high level
 were also matters of common know
 ledge. When it is remembered that
 the industrials never fully reflected
 the effect of war profits and were
 never unduly inflated, it would seem
 as if the recent decline had about dis