New Britain herald., 1917-05-05
Henry Clevs ,
 Weekly Letter
Especial to the Herald.


 Especial to the Herald.
 New York, May 5.-National mo- bilization of finance. industry and trade to a war basis is rapidly pro-
 gressing. Congress is intensely occu-
 pied devising ways and means Cor
 aiding in financing the war, while the government through it's various
 agencies is not only preparing the
 army and navy. but also securing the
 cooperation of the nation in every sphere of activity. so that the whole
 country can work as a unit whole heartedly and efficiency. This it Is
 already doing with patriotism and ,vigor surpassing all expectations. As- distance of inestimab1e value has been rendered by French and Brit ish commissioners now visiting this
 country, who by giving the benefit of
 their experience and suggesting tho direction of our efforts have un- doubtedly, saved us from many errors and delays that would otherwise have proved costly in life. time and ma terials. f
 The most conspicuous influence of the war in the security markets is the raising of $7,O0O,0O0,000 for it's SUD-
 
 announced the first issue of $2,000,- 000,000 3 1-2 per cent. bonds on July
 1 at par. tax free. This issue will un- occasionally be an overwhelming suc- cess, national patriotism alone being sure to prove powerful stimulant in
 this respect. It will be popular loan in varied denominations to suit all purposes for the same without charge. The effects of such vast operations are already being realized. The collection of such immense amounts of funds will extend over a considerable period of time. They will be withdrawn in a manner crea- ting the least possible disturbance, but the nations financial machinery must inevitably undergo far reaching re- adjustment to meet these extraordi- nary new conditions. The sums raised by bond issues will be allowed to re- main in banks and trust companies in various parts of the country until actually needed. As the bulk of the money raised by these issues will be expended in the United States, such funds will only be momentarily with drawn from active employment, and their expenditure in this country will naturally stimulate all industries. The gagged in making war supplies. The result will be an immense turnover and an increase rather than a decrease in the aggregate amount of business transacted, although a few lines of business may suffer temporary con- traction. There will be more and more activity in government issues. which already constitute an important share of our bond market.
 <S~ I~ >~ <H14 ernment upon the money market must rthe time being discourage ordi- nary corporation issues of both bonds and stocks while some selling of the latter may be expected by those wish- ing to subscribe for the new bonds. 1 Tn April the recorded issues of rail- road and industrial corporations ag- gregated $13O, ,0OO,OO6, compared with l $312, 100000 month ago and $221,- poo, 900 a year ago. The total issues | of the same class since January l, were $S3s,0OO,0OO, against $992,OOO.- 900 at the same time last year. These l declines can be clearly attributed to the diversion of capital from ordinary channels to preparations for the big government loan. In this connection l 1t is appropriate to again express the hope that congress will endeavor to
  new methods of taxation. There l should be no disposition to favor or punish either capital or labor. Aa far as practicable each should bear 1 their share in proportion of their | ability, for to penalize any one class l is foreign to American ideas of gov- ernment and would ultimately injure 1 (he country as a whole. There is no l sound objection to placing higher ! rstes upon large incomes and excess | profits. sbut if this is carried to the | point of drying up the main sources of | capital and stifling enterprise, the re- suit will be harmful to all, rich and | poor alike. For the same reason the | call for economy should be obeyed | conscientiously, but with discretion. 1 It may be necessary to temporarily l release labor from unnecessary occu- 1 patton in order to provide for the l more necessary ones. ExtrAvagance l and the wanton expenditures should 1 cease; but indiscriminate economy l would bring the same results as undue 1 taxation of wealth. viz, business de- pression and loss Of employment.
 Business as whole continues very | active. April bank clearings were over 30 per cent heavier than year | ago, part or tulS Tiso OelnS uuo to higher prices In few lines there is l moderate slowing down, due to economy. to conservatism created by l war. also to greater caution in ex- tending credit to industries working ! upon a highly inflated basis. In other l lines. however there has been . per- ceptible speeding up and a more in- tense activity than at any time since the war. This is especially true of the ] steel industry, where orders are be- | ing placed right into 1918 and even 1919. The demand for steel for mu- nitions. railroad equipment. ship | building, materials, etc., is extremely l ,,rxenf and heavy. In copper, oil and l