The Bridgeport evening farmer., 1917-06-25

HENRY CLEWS
WEEKLY LETTER
Monetary conditions require closer
attention since the placing of the Lib
erty Loan Call money touched per
cent, and time money ruled firmer
owing to the heavy temporary calls
upon the money market between mid
June and mid-July. The accumuia-
don of funds for the 2 per cent in
stalment of the Liberty Loan and the
is per cent due June 2Sth, naturally
exerted hardening effect, as ala
preparations for the heaviest July An
terest and dividend disbursements on
record; also income tax payments ana
1nrthcomtng heavy borrowings py
New York city, which is contemplat-
lng an issue of $55,000.000 in bonds
within short period. In the aggre-
gate not far from a billion dollars Will
be utilized to finance the various ne
cessities of the money market during
the period just named, and had II
not been for skilful financing, coup
led with the aid of the reserve banks,
some old-time stringency in money
rates would certainly. have been ex-
perienced. Certain of these payments
have already been made, and sucf
funds will shortly return to ordinary
channels; the heaviest strain un-
t3oubtedly coming at the end OF the
month when the Is per cent. install
ment of the Liberty Loan payment
and July disbursements come close
together. Partial relief has been OBJ
tanned by gold imports, nearly $780,
O0O,0 having arrived from Canada
fliis week. Considerable gold has
been shipped to Japan and Spain, but
these movements attracted relatively
little attention because further arriv-
ais from Canada are anticipated. In
this connection, the decline of ex-
change in Spain, Russia and Germany
excited more or less comment. The
mark declined to II, q fall of about
SO per cent, due presumably to infla-
tion of German paper currency.
There is one factor in business, the
Importance of which has not yet been
thoroughly appreciated; that is, the
great extent to. which industry has
come under government control since
our entry into the, war. Nearly all OF
our great Industries are now under
rovernment control. This ddes not
mean that the government has as
r1,ITned Scornplete control, except in a
very few Instances. but it does mean
that the nations requirements are
paramount to all others, and that the
leading INDUSTRIES must conform to
conditions deemed necessary, not only
for public good. but also for the as
sista,ca of our Allies in their conduct
- +ba way THE steeI industry with
- ty,r,,y,,leya Az s,,l,divisions IL the
1900 ~ MI, axanoY,le a. would
~ srnertefiI Our textile industries
: "a largelv under C5overnment regusa-
zion 40. too. are our shipping and
railroad systems. The food supplies
az the United States are to be brought
undr practically single control with
.. view of conserving their use and il
liberal norton for the Allies, who will
he ]nnch more dependent upon this
country far ,food than ever before in
thesr b,storv. The export trade is
sro7, N he brought hinder control. not
n,ereyv for the conservation and bet
ter ntj,ization of supplies. but also to
assist the Allies in their efforts to
prevent American food reaching ene-
NV destinations. gOur mineral re-
s,,,rcas 7incIudine coal. conner. oil
etc are libelv ~ come under similar
lirnitations. the present high prices
and the difficultv Of securing mater
iaIlv stimulatinr the movement in
this direction. The efforts to check
specuIation In food products and
other necessities OF life are sure to be
evranded where these movements
viii end mo one can predict. Probably
thew viii 90 on until ali Important
industries have been nationalized or
mobilized for common defense during
the war. Back of this remarkable
movement is the patriotic recognition
OF the imperative necessity of co-op-
GRAFTON on nationwide scale by
hoff, canital and labor alike. while the
Government recognizes the need of
regulating prices and supplies in or
der TO keen down waste and prevent
luxurious speculation. The economic
consequences of such departures will
doubtless prove highly important.
They will certainly check, If not en-
tirely stop ,inordinate profits, which
have been the basis of public ,Nsap-
prevail and excessive initiation But
such regulation must be accepted as
purely war measures, and when the
struggle is anticipated. Nevertheless,
some highly valuable lessons will
have been learned in the direction OF
efficiency, of limiting waste, of close