The Bridgeport times and evening farmer., 1918-10-21
HENRY CLEWS'
 WEEKLY LETTER

Germany is evidently beaten, and her military commanders know it. Retreat is widespread and will prob- aoly continue until new front is reached for a final and desperate stand. Germany is not yet prepared 10 surrender and accept President Wilson's demands; though she ul- t1mately must. Doubtless the Kaiser hopes to secure better terms by hold Ing on as long as possible; but in that respect he is simply playing into the AIned hands, for President Wilson wilson wisely chose to leave the ques- ton of an armistice to the decision of General Foch, so there will be no truce nor peace with Germany short Of absolute surrender. As winter fs close at hand, when campaigning will De at minimum, the final blow may not be struck until next spring, but the Allies will push the war in spite or winter. On the other hand signs Of internal breakdown are multiply ing, while discontent within Germany and a growing desire for peace will hasten the end. Elsewhere German conquests and ambitions are falling. like house of cards. Turkey. Hum sary, Poland, Ukraine, Bulgaria, and others are all shaking off the Teuton yoke, which six short months ago threatened the civilized world but is now nothing but an empty dream,
 Absolute, unconditional surrender by the Teutons and nothing else will now satisfy the American people. also evacuation of all territory obtained since the commencement of the war. The Allied armies will, I hope, con- tinue on the battle field and follow the enemies as they retreat until all their armies have arrived within their own borders and they lay down their arms, which am sure President Wilson will require. Then and not until then will ah armistice be in order. There is no use in accepting peace in my Judgment until these terms are com piled with, and the handwriting on the wall indicates that such will be the result at an early date. I hope the Allies will make every effort to end forever the rule of the HohenzoI- ferns in Europe. The present Kaiser Is bad and viciousIy cruel, as we have fully experienced in the last four to five years, but to leave the succession open to his six sons, with the possi- b1lity of having six additional Kaisers, would be a serious menace to the worlds peace for the next fifty years.
 Now that the $6,OOO,OOO, 900 loan is out of the way the monetary outlook will ha hi this unprecedented transaction should be accomplished with comparatively no disturbance is remarkable evidence of the financial strength of the Unit ed States. Success has been entirely due to skillful handling by the gov- ernment, plus patriotic public support and unparalleled assistance by finan- cial institutions from the Atlantic to the Pacific. It is an achievement that will hearten cur soldiers at the front; stiffen Allied onsIaughts, and convince Germany of our ability and determination to, conquer A large share of this vast sum will as usual be expended at home; sustaining ac- ttvity in intuition plants for 8, further considerable period. There need be IO aDOuL the future the money market for some time to come; and now that the strain is over there would seem to be no valid req son why those who have controlled money at this center, begging the rate at per cent, should not relax some what and lend more freely at easier rates. Of course under existing banking conditions no material exten- sion of credit is desira bIe, nor can 1t be expected; but moderate relaxa- tion of artificial stringency, which has hitherto been necessary, is within the limits of safety and would benefit both financial and business inter- ests.
 The stock market is already busy discounting peace, and there has been good buying of what are classed as peace stocks, especially by shrewd investors. It has been repeatedly shown in these advices that security prices have had practically no share in the worldwide imitation of values; and their adjustment, which has been long delayed, is inevitable at some stage, either through rise in stocks or a fall in commodities. Since the latter move is not within early prob abilities, the stock market should in the ordinary course of events rise as the pressure of government demands for money abateI the absorption of funds by the war having been the chief reason for Stock Exchange de- pression. Danger exists of too rapid or too extreme recovery; particularly If peace meets with delays, which arc probable. Nevertheless, there are many good stocks and bonds which are selling below intrinsic value, and which in due time should yield good results to discriminating purchasers | Among such, the best railroad prop i critics stand first, Their financial fu- ture is stronger now than before the war; because they have been with l drawn from the starving control of a | prejudiced Interstate Commission and placed in charge of the Federal gov | ernment, which Is earnestly endeav- oring to give a square deal to in- estors, as well as to shippers and en- ployes, who have until recently been treated as privileged classes, with ths 1 result of bringing American railroads | to the brink of bankruptcy, That | era is fortunately now a matter of 1 history. Secretary McAdoo has en- | deavored to make fair contracts with the roads; to arrange for needed financial assistance, and to afford the ! various companies chance to earn req