The Bridgeport times and evening farmer., 1918-06-10
The World of Finance

than British and less inclined to un fair restrictions. Our industries are still moving in the direction of more absolute government control. The steel industry will probably He en- tirely regulated at Washington with in a very short time; and now the textile manufacturers are looking in the same direction, preferring the uniformity of government control to the confusion and uncertainties of part government and part private control, with at the same time widely f1uceuating margins of profit and la bor problems to contend against. In all industrial affairs the prospects are for stricter government direction of both production and distribution dur ing the war. Such efforts were at first restricted to the supplies of raw materials, but are now being directed to not a few semi-manufactured prod ucts. Whether government interven- ton will extend into retail distribu- tton cannot be foretold.
 More attention is now being paid to railroad shares as the importance of government backing becomes more generally recognized Their profits on the basis of the last three years are assured for a considerable pe- riod; rates are to be literally ad- vanced in order to meet increased wages and other expenses; the gov ernment will provide funds for neces- sary improvements and rehabilitation; labor trouble under government con- trol will be at minimum, while sim yola yadnNfinY of and cessation of State interference will add to the general relief of Amer ican railroads. Our industrials face a somewhat more complex situation, is illustrated by reduction in several copper dividends. The outlook for necessary industries is still encourag- ing, especially steel production, which for obvious reasons is liberally treat ed by the government. Thus far the diversion from the unnecessary to the necessary has caused relatively little hardship because of the urgency of the demand for essentials. Some industries will feel the coming in- crease in taxes, which it is already intimated will be double the present rate. As these burdens will be based chiefly upon excess profits and large incomes, the government will be obliged to act discreetly in formulat- ing any new taxes, lest it destroy the profits and the enterprises out of which these taxes must be extracted. The administration is certainly likely to be wise enough to avoid drying up the sources of such 8 mass of easily secured revenue. This whole ques- tion of taxation is one that requires expert knowledge, also a strong sense of justice; else self-injury and inad- equate revenue will result. No doubt Secretary McAdoo's suggestion that one-third of the necessary revenue be raised by taxation and two-thirds by bonds will receive general approval. It is estimated that the war will cost next year nearly 20 billions, and that to raise more than two-thirds of this by bonds would mean hurtful infia- ton, and increased interest rates Apparently there is no better plan than increasing taxes, simplifying them, and distributing them as equit- ably as possible. The burden is an unwelcome one, but we are quite equal to it, and the call will be cheer fully met.
 The recent strength of the stock market reflects general soundness of the financial situation, as well as uni
 versal confidence in the future; the latter being largely inspired by un- l shaken belief in ultimaet victory Prices ffuctuated sharply at times owing to profit taking and conflicting reports from the front, but the pre- ivailing trend seems to be optimistic
 The break in coppers also checked the advancing tendency. A notable change for the better was the in creasing supply of time money and slightly easier rates, due presumably to the war loan being out of the way and to taxes being practically pro vided for. Until preparations for the next loan are in order, the money market should have fairly plain sail ing. AZ no time since our entrance | into the war has the outlook beer mora rea sS1IriOG ar less confusing