The Bridgeport times and evening farmer., 1918-08-13
HENRY CLEWS
WEEKLY LETTER


GOOD news comes from the front.
The war tide is rising rapidly In our
favor every day and Is as rapidly
falling against the enemy. The NOR
ale Of the enemy is now lower than
at any time of the war, while with
the Allies the contrary is conspIcu-
ouSly true, Apparently the British
and French have launched q new Of
fensive with special success. Ger
many has made three stupendous
drives on the West, all of which have
been nat failures. accomplishing moth
ing but grasping sections Of territory
which she cannot hold and will be of
no permanent advantage. American
troops have already made splendid
exhibition Of fighting qualities; .and
Germany will soon realize what to
expect when our millions OF ardent
and fearless young soldiers reach the
front in larger force. The German
high command bad hoped to obtain
a decision before their arrival, but
failed, and today victory for the Al
lies Is not so very far distant. Our
government is wisely making full
preparations for an army of immense
size, Ave millions or more. This Is
the kind of argument which Germany
best understands and which Is sure to
hasten Allied victory.
There Is no need for special anxiety
about the monetary outlook. All that
is necessary is to understand the sit
uation and then make necessary adj
justments. The nation has one great
purpose in view; winning the war
and every energy must be turned in
that direction. The truth is, there
is a tremendous pressure for credit
upon the banks. High prices for
commodities, labor, etc, fully tax
their resources and the expansion Of
credit has been very considerable.
Crops are moving faster than usual;
and with fixed prices there are no in
ducements for farmers to hold their
grain. Business requirements are
unusually heavy; and the interior
banks are we'll loaned UP. 1t is self
evident, therefore, that there must be
some curtailment of credit, especially
in view of the approaching prepara-
tions for the next Liberty Loan. Dur
ing the new fiscal year the govern
ment will require immense quantities
of money, one-third from taxes and
two-thirds in bonds or other obliga-
tionA Such huge demands WILL of
course impose additional burdens up
on the banks and the money market.
Our banks are In sound position; our
banking resources are quite equal to
the enormous strain, and behind all
we have the Federal reserve system,
which has almost accomplished mir
acles in marshalling and utilizing the
eountry's credit facilities. Money
and credit like other commodities,
will probably rule high for some time
to come; but the process of equaliza-
ton operates constantly and tends to
equalize matters. There is also COM
pensation in the fact that nearly all
of the money required to be raised by
the government will be spent in the
United States, stimulating war indus
I'd tries beyond the most sanguine expec-
tations.
Taxation for the coming year is a
problem of particular Importance
The country is calmly facing the ne
cessity Of a big increase in taxes
which are expected to be double those
realized that one-third of the cost
or $4,000, 100000, must be met by
direct taxes, and that a large portion
of this sum must be raised out of in
comes, Last year the personal in.
come tax collected was about $1f3,.
600, 900 and the corporation tax
172,000,000. There is no doubt thai
Congress will pass a more equitable
and better tax bill than the presen
one If backed by sound public opin
ion. The theory of placing the heav.
lest burdens upon those best able t.
bear them, is Enthusiastically wise ant
practical and heavy sacrifices have
already been made by those in thi
class. At the same time there is
disposition to unduly load som,
classes, leaving Others quite able t.
bear a share, almost or entirely free
To impair business, wipe out saving
or profits, and dry up sources of new
capital and revenue Is of course un
sound from either the economic O.
legislative standpoint ;and it i
equally unsound, if not unfair also
that the tax is not more widely ant
equitably distributed. According Il
Washington statements, one-third O
this $17S, 900, 900 income tax was pait
by investors and dealers in securities
concerning which there is no com
plant. Labor, however, paid onI
S6 per cent. 1t is freely concede,
that the tax on labor should be ligh
as possible; but considering Che sec
lion Of labor which 10 securing wa
wages, this minute share seems hard
y justified. War wages can at leas
pay moderate tax, If war profits ca,
pay an excessive one, Again, 80 De
cent of the total tax came from In
comes Of $4,000, and less than pc
cent from incomes of $4,000, owe
420, 900 individuals reporting income
IF the latter volume. Only ten pal
axes on incomes of 100000 an
over; that total gathered from thi
class amounting to s13, 900, 900. Per
maps the most striking feature of tn
-eturns is that of the farmers, VIII
are already an especially favore
class but paid only per cent, of tn
AK. As they have enjoyed a serie