The Bridgeport times and evening farmer., 1918-12-23
HENRY CLEWS' WEEKLY LETTER


 in military affairs, but also in indus 1 trial and commercial circles. Re strictions upon steel, textile and other l industries have been almost entirely l abolished Price fixing has also prac- | ltically disappeared, and the merchan- 1 disc markets are rapidly adjusting themselves to open market conditions 1 without serious Arrangement. AS an- ] ticipated, there is some degree of un- easiness concerning such changes, &C., l Icompanied by occasional efforts to i iprevent demoralization by concerted i action, as we'll as few complaints of losses and cancellations. Taking such difficulties in the aggregate, i however, they are much smaller than | expectedJ the total percentage of can ceIlations being placed in some i'm pDrtant industries at not more than five per cent In the steel industry the volume of cancellations has been l much diminished through the shift ling of war orders to industrial steel, i and similar policy has been fol- flowed to some degree in the textile industries. The readjustment in labor also seems to have been readily handled thus far. Many thousands of hands who had been discharged from mu- milton plants quickly found employ ment in other industries; and large percentage of discharged soldiers has thus far had similar good fortune. How this will be as the influx in ,ereases remains to be seen; but with the activity now prevailing in indus try and the revival of deferred enter prises there should be no serious diff culty in finding employment for those mustered out. In view of the stupen- dpus changes developed since the signing of the armistice on November Il, and considering that this country was much less prepared for peace than some others countries, the transi- tfon is really being effected with mar velous promptness and ease.
 One of the greatest difficulties in returning to normal is the monetary situation. Government requirements are so huge and insistent that ordi- nary demands for commerce and in dustry ttke secondl place. Taxes are a menacing burden; and, combined with bond issues manage to absorb the bulk of the country's savings, es- timated at somewhere between seven and ten billions. The excess profits tax is particularly injurious; because it strikes directly at the main source of new capital. The latest railroad plans projected would involve an ex- penditure of about $500, COG, GOO a year for five years. The shipping program calls for the building of about 13O00,- 900 additional tons at a cost of sev- eral billion dollars; not to mention liberal subsidies to meet operating I1nccoc 1Tr1,i ic1o +o ho by taxation. All Df these proposals threaten to seriously raise the bur den of taxation and lower the stand ard of service.
 More interest In foreign trade is promised now that the war Is over and commerce tends to. resume it's natural sway. At first the European demand for foodstuffs will be the most prominent feature. Next there will be an extensive call for materials necessary to reconstruction. Onr inn ports are still very light, and trans portation is far from rDrmal. Many foreign commodities are scarce The production of luXuries has been les sened by war, and belligerent coun- tries have practically no surplus mer- chandise to spare. The result is, our exports are rising at nearly double the rate of imports; a condition that must delay the return to a norma = trade balance, and which promises C Il run heavily in our flavor for months II to cbme. Considering Europe's in- ability to pay for exports by sending Il merchandise to this side, we mus Il continue extending liberal credits tc II former belligerents in one form ol II another. International credit is ot Il course under heavy strain, though ir most cases the machinery of govern Il ment has been suitably adjusted tC T meet it. At home the strain Is alsc Il felt, showing itself partly in the diff. Il culty of securing sufficient funds fol new enterprises unless they are of strictly necessary character. Com
 mercial credit requirements are H usually met without strain, thougf bankers are disposed to discourage carrying large stocks of merchandise at present high prices.
 Big 6istributive merchants through II out the country report conditions al Il very satisfactory. This is especially Il true in the agricultural district! Il where farmers have been securing Il very high prices for their products Il It is also true of the industrial cen Il IeAE, WHeIG great dcIlV1Cy and hlgI Il wages have had a similar effect il Il the retail trade. A better holfda, Il trade has been done than last year and cancellations among interior job
 bers have been much below expecta, II tions. The general opinion is freuuen
 among merchants that prices of near
 ly all commodities must decline. Foot
 may be a temporary exception. be
 cause of the urgent foreign demand
 but the general outlook is considere,
 as favoring a gradual reduction in tn
 high cost of living. This opinion i
 not invariably held in banking cir
 cles, where there is a disposition t Il look for continued imitation of value
 as long as the government continue
 it's borrowing and spending upo
 such a huge scale as at present. Tn
 conviction strengthens daily that tb Il government should cut down ex
 penees, step borrowing, withdra,
 from business and get back to normf
 as rapidly as possible; that is, if tn
 country is to regain it's former fool
 ing and utilize present favorable or