The Bridgeport evening farmer., 1917-10-02

There appears slight reason 10 ap-
prehend that banking and otner
large financial interests will aban-
don their recent View that the sue
Gen. OF the new government bond OF
fering requires that investment con-
dittons az whole must pc MAINTAIN
ed la such condition as to create
favoring financial atmosphere during |
a. period of marketing the new gov
srnment issue, 1t is significant that
the IL per cent. Liberty bonds,
which were sold in june. should
command small premium at a time
when per cents. are to be offered In
large amounts at par. OF course, the
privilege of conversion into the new
a per cent. places them, so FAR as peo-
ME with moderate incomes are con-
cerned. upon more attractive basis.
III is doubtful. however. whether there
will be any widespread movement
among the larger holders to transfer
them into tho new securities that
ne about to be offered. since they
would then lose a very valuable tax
exempt privilege. refer to their
fax free privilege as regards the large
surtaxes on incomes contained In the
new war Revenue bill which is soon
10 receive the signature Of the Presi-
dent.
III In rather difficult to reach a sat
isfyfng conclusion as to the real in
fiuence ON the market for securities
of the announcement by the govern
ment OF the IRON and steel prices that
wore 4ssk Az sptfblic's6m Monday of this
wsS1kz The new figures are thes re-
4 auit ON an agreement between our
government and representatives OF
our steel manufacturers The prices
when compared with those recently
current represent, It is true, very
substantial reductions. as, for in
stance, = decline from $5S per. ton
to $ss for pig iron, from $3.50 to
92-96 per cwt. for steel bars, from
Y t6pt0s$a per cwte for shapes and from
$I1 to- $s.25eDe cwt, for plates. But
Ill these new prices are. far above
the quotations current before the
war, when, for instance, pig iron In
Stead OF being sss was $14 and coke
was 3S.32 per ton instead OF So. Steel
bars were $23 instead of s$68 per ton.
plates $3.50 instead of $65 and shapes
S2330 instead OF $780,.
f AT first report was published that
the new figures would apply to all the
ola contracts upon which deliveries
had not been made by the manufac-
turerM a feature that would have
meant a severe cut in anticipated pro-
fitm. Later advices from Washington
howkver, explained that while 1t was
infedded that the new scale of prices
y should apply to ali business tor do
m9st1c as well as government account
}tE WINS not the intention to interfere
with non-governmental contracts al
ready placed However, some OF
these contracts are understood to
N contain clauses protecting the buyer
fn the event OF price reduction; they
necessarily will be reduced automa-
ficaliy to the new level.
Now that prices have been defin-
itely fixed 1t is possible that there
may be O. revival of business In the di-
rection OF domestic orders. Recently
business Of this character not unnat-
ura1fy has been restrained because Of
the expectation that q substantial re-
duction would become available in
the price. In these circumstances il
would have been unwise to have pro-
ceeded with large purchases for con-
structicn work. The new quotations
cannot fail to leave their imprint in
the form OF reduced earnings of SONS
OF our large industrial plants. Bu'
thre 40 ample leeway for such reduc.
tlon when the extent of the formel
y prices is considered Under the new
conditions, according to the agree
ment between the government and
manufacturers, there Is to be no re
ductton In the wage scales of labor
Last week for the fifth time since the
war started the United States Stee
Corporation advanced wages 10 PEI
cent. and other large manufacturer
soon followed. The high wages tina
are current throughout the countr,
represent buying power for on
country that never before has beef
equalled. Our agricultural interest
are IN at least an equal position as II
prosperity. which means, of course
q continued demand by consumers a
home for luxuries as well-as necessf
tioa during the period of the wsr.
Congress ia soon to adjourn, ant
for the time being thefull burdel
thatathe war is to impose in the form
of taxation will be known. The eff
fects OF tax legislation may then il
~ measure be regarded as havin
been discounted. 1t is beginning t
look as though some of the most rad
ical proposals affecting taxation an
excess profits willn OF be carrie
through.
The weeks advices from abroa
clearly Eu&Gest that the question 0
paaGa iRs asauminG more of a practic
~ and less of q superficial form. Ger