The Bridgeport times and evening farmer., 1918-05-14
The World Ot Finance

Our farmers are unquestionably work ing strenuously to cultivate every acre, and secure the largest possible yield.
 In financial circles 8 much more hopeful spirit prevails. This is based primarily on the growing conviction of ultimate German defeat, Along with th0 enthusiasm created by 8 successful loan campaign. courage has risen and optimism is running stronger than at any time since the war. The spirit of dogged resistance to unfavorable factors Is growing. Our people are looking far ahead to the era of progress which is bound to come after the war. In the face of such expectations, minor difficulties do not count. So far as immediate affairs are concerned, the situation is favorable. Business activity is gen. eral, and bank clearings again show increases over the previous year, Un- der such stimulating influences the security market showed growing ac- ticity, The steel issues naturally re- sponded most readily, U. 6. Steel showing a rise of several points, while the smaller concerns benefited correspondingly. Large orders placed for rolling stock, engines and cars, stimulated interest in the securities affected, and more attention was ] given to the railroads which are now under shelter of the government un- brella- There is no longer doubt about recent dividend rates being %aJ oIy | recovering under the restoration of traffic to more normal conditions. Heavy increases in wages are in pros pecty costing between S20o, ,0e0, 900 and S3o0,000, 900, and to meet these increased outlays the government is 1 likely to advance rates at an early date about 20 to 30 per cent Thus far the government has cleared up the congestion which broke down transportation last winter; has planned for immediate rolling stock {; 1 has proposed an increase in wages, and Is contemplating an advance in rates When it completes these great plans, and makes arrangements for better and simpler routing, it will have saved at least temporarily sew eral great transportation problems. | The government still has to make its
 contract with the railroads; and it is 1 somewhat unfortunate that the un- | friendly spirit of the Interstate Com
 merce Commission is an~adVerse fac i tor in these negotiations Govern ment operation of the railroads is now on trial Circumstances arc in its
 favor to an extraordinary degree, and
 great consequences depend upon it's | success or failure as a huge expert | ment.
 In the bond market there has been
 q fair degree of activity, attention be- ing devoted chiefly to foreign issues, l and some of the low priced domestic
 Issues, which fell to very low prices
 because of long neglect and the cur rent high rates for money. There is
 no question but that many of ouI best issues put out by railroads, in- dustHa1s, as well as public service and municipal obligations, are selling al
 very low prices compared with values Il in ither directions. War inhatior long ago forced commodities and wages to excessively high levels. IT securities there has been practically no such inf1ation, and some sort ot
 equalization is inevitable Either
 commodities and wages must decline
 or investments must appreciate; ant
 just at present 1t seems as if evening
 up would be an easier process thar
 levelingdoWn At the same time tho outlook is fun of unusual perpleNties; for the strain of war threatens to b.
 long and severe. Reyerses may hap
 pen at any period, and all commit
 ments extending into the future
 should be made with exacting care
 The demands of war are sure to keeI
 the money market in more or les
 stringent condition While the out
 look is hopeful and optimism is rising ', conservative action will still be neces
 sary.