The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-07-30
HENRY CLEWS
aM'EEkiY Letter

4 War finance rules the business
world today with grip Of steel.
Secretary McAdoo has just surprised
the country by asking for an addition
al 5000, 100000 to carry on the war.
making when granted an authorize
ton of $4,000, 100000 since our en-
try into the struggle Such colossal
sums are difficult of comprehension
but some idea may be gained BY the
fact that it Is more than all the farms
In the United States can produce
within a year; Is nearly four times
the value of our mineral products,
and about $1,000, 100000 In excess OF
the banner year in our foreign trade.
Nor il this all. A 100000 600, 0oe
budget is possible for the next twelve
months to provide for necessary out
laws, OF course, the United States
will not itself spend all this huge
sum. A large portion will be loan
ed to our Allies. SO that the full
amount will not represent actual
costs OF the war to the United States.
We have recently loaned about ST.
SOC. 000. 900 to Great Britain and must
shortly loan still larger sums. the
bulk OF which will be spent here for
military purposes. These latter loans
will be an asset, so far as we are
concerned, and not liability. Such
"a magnificent display of financial
mower should hearten our Allies, and
open the eyes Of our adversaries to
the stubborn fact that they are en-
iga8ed in a war of self-destructton,
blindly hurting themselves against
the impossible. Our own Admins
tration has certainly done wisely by
acting with all possible vigor and
utilizing our immense resources OF
men. munitions and money for the
Allies without stint The latest adj
vices from the seat Of war have dis
couraging. the setback and disaffec-
settling. Anarchy prevails for the
time being. Nevertheless. such re-
verses must be expected. Russia is
a country imperfectly understood,
and always furnishing surprises. In
any event, 1t is premature to believe
that Russia will not ultimately pull
herself together and do her share In
the world struggle, Her making
peace with Germany at this time
seems incredible.
General business in the United
States IL active in many lines and
conditions are sound. Crop reports
continue to be more and more en-
couraging; while industry with few
exceptions Is working under contin-
ned high pressure. There is little or
no initiation Of credit, our banking
situation being highly satisfactory
and quite equal to the strain impos-
ed by war. In commodities, how
eer, there Is more or less initiation,
directly traceable TO the war which
unavoidably increases cost OF produc-
ton and fosters high prices. How far
sovernment Intervention will be able
TO stop initiation of commodities, re-
mains to be seen. Great Britain be-
gan experiments in this direction long
in advance of the United States. and
despite all efforts to the contrary,
the law Of supply and demand exert
I'd It's sway more or less effectively.
Thus far, government control has
been most effectual when confined to
enforcing laws against Injurious spe-
:eu1ation or monopoly and aimed at
Securing more efficiency and less
waste. The British government has
had but indiffent success in price fix
ing. but proved that; government can
mitigate though not prevent high
prices. which ultimately bring their
own corrective automatically through
Increased production and restricted
consumption. The fixed price idea is
"a simpie-minded dream, utterly Inn
practicable where basic conditions
Sfluctuate daily and are different in
every locality. II 1t were feasible to
establish a. system of fixed prices, all
sorts OF evasion would be quickly mi
tiated. and bargains would be made
to offset fixed prices by shifting of
Y 40 ~xnT
weights and size of packages, special
credits, ETC. In another direction
lGreat Britain also had Indifferent
success and that lis in the regulation
of transportation. British shipping is
now regulated to almost the last de-
tail az to ports caxgoes, sailings,
freight rates. passenger rates, etc.
Fortunately, the United States Is get
ting at many Of these results more
effecually and with less friction by
means of united cooperation on the
part Of leading industrial concerns
with the United States government
For the time being. business ia
much hampered by delay In new leg
stslation. The country awaits settle-
fnent Of the Revenue Bill, the Food
B1f and several other war measures
of importance. When these are set
tied, activity will in all proba bility
be free to make contracts ahead. II
goes without saying that certain in
dustries will be immensely stimulated
by war contracts. Congress has au-
thorized ss40,000, 900 for aeroplanes,
$500, 100000 for shipbuilding and an
other $1oo.o0o.ooo for the navy. I'M
menss sums will be spent for war
materials. not only by ourselves but
z by our Allies, to whose aid we are
ycomniitted heart and soul. OF course,
the steel industry will be the chief
Beneficiary of this huge activity.
Steel will win this war. and our un-
sequalled resources in this primary in
dustry will prove to be one of the
most decisive factors.
In securities there Is but little In
flation. In fact in some directions
there 10 more or less deflation al
ready accomplished. Our railroad
shares are exceedingly low in price,
due largely to the limitations upon
their profits enforced by the govern
afnent and the consequent lack Of in
centiye to their development. The
advancing tendency Of money result
ling from colossal government issues
fhes been an important factor, though
This bears heaviest upon high grade
bonds and long term issues Inves-
&ors are showing decided preference
for short term obligations, because of
-