New Britain herald., 1918-03-09
Henry CzeHs
 Weekly Letter
Especial to the Herald).

clrcieS degree of confidence still is
 being reflected by the market for se- | curities, feature all the more re- 1 markable when we consider the 1 epoch marking events associated with l the great war which are of almo 1 daily occurrence. The explanation of what on the surface might appear a ! paradox is not difficult to uncover. Admittedly serious as is the imme- 1 dlate outlook, there has not been one moment when doubts have been en- terta1ned seriously as to the final re- suit of the war We are approach ing with confidence the new military campaign which must develop with the spring. We know that we our selves are from now on to participate in the sacrifice of life which is the inevitable concomitant of war and which unfortunately is so necessary for the protection of freedom of
 thought and action and for the pres
 erVation of our free and enlightened
 republic. But there will be no fal-
 tering, no turning back and there can
 be but one resuf-the overthrow of the despotic and autocratic caste
 which so insidiously is trying to en- slave the world.
 We did not enter the war for selfish gain; we have none but the loftiest motives in endeavoring to bring the struggle to a prompt and victorious close. At the same time it is obvi- ous that the results of the war in evitably will provide benefits of a ma terial character. Before our own par ticipation we had already broadened out; our more local viewpoint had given place to one of the widest in ternatlonalism. We had paid back to our foreign creditors the debts in cured for the rapid development of our country. Our foreign trade with neutral as well as belligerent coun- tries had increased by leaps and bounds. Dollar exchange was rapidly
 being substituted for sterling exchange and we were in the first place as the worlds bankers. All this was a. mere foundation for what is happening since we ourselves were forced to be- come a belligerent. We now are building ships on such a scale as to ensure that the American flag will, with peace, once again be seen on all the Seven Seas; we are loaning billions to the countries with whom we are now associated in the war. These bill lions, in fact, represent investments of our people, for they are the proceeds of our own Liberty Bonds, which our Treasury, in turn, is leaning at the same rates it itself is paying for the funds. The governments to whom we are loaning are placing with our Treasury bonds of their own identical in maturity and interest with ours. These they guarantee to pay, principal and interest. The real net result, it will be observed, is that our people are becoming investors on a scale be- ha tio of more than five years ago. Instead of sending interest and dividend pay ments to creditors abroad, the reverse on a largely increased scale will be the case. This phase will expand the longer the war lasts. Of great inn portancc is the fact that our people will have more generally learned in 3 practical way the art of saving, such as would have been possible in no other way. This is a change for the better that is fundaln mental.
 These are but a few of the more
 practical benefits which we may con- fdently expect the war to produce.
 Beyond them is the more sentimental
 feature in the form of the whole
 hearted and liberal manner in which we have undertaken to exert our full
 power at time which we have be- cause our Allies had suffered so free ly from the privations and so many
 disasters of more than three years of the fiercest conflict the world had ever seen. Throughout the world the United States will be known and re spected far in excess of any previous possibi
 Such a view hardly can fail to con- stitute 8 factor which will mean greater ultimate value for securities of corporations responsible for so large a measure of our national ac- tivities. But this view is a long range one. Immediate market move ments will be subject to factors whose influence is closer. Early in April the third war loan will be offered formally by Secretary MoAdoo. It's exact terms have not been announced officially, but there seems no reason to doubt that the rate will be F per cent. In the meantime $3000, 0,000,- 900 of Treasury certificates of indebt- edness, issued in anticipation of the loan, will have been patriotically taken by the banks of the country on the secretary's invitation. These are intended to be turned in in pay ment of subscriptions to the new war loan, and there can be no doubt that the loan, like the ones preceding, will be a success. There is not unlikely to be some degree of preliminary liqui- dation of fixed investn ents by inter- ! estS who will wish to subscribe to such an attractive investment as 8, F per cent. United States Government bond. 1 Subscriptions by means of funds thus released are not as desirable as more liquid capital. There must be buyers for all the other securities which are sold, and the volume of new capital is in this way not increased. The natural tendency of such sales of Stock Exchange securities is to de- press prices On the other hand there is nSuallV a. substantial degree of ex-