New Britain herald., 1918-11-09
Henry CZen's
Weekly Letter
Especial to the HERALD

established beyond question, there will
be many new and difficult problems
to settle. Military rehabilitation, tax
revision, price fixing, food regulation
and many other measures imposed by
war will require earnest and careful
consideration; some for prompt dis
'carding, others for gradual abolition.
There is nothing gained by avoiding
the fact that the country is facing a
period of unsettlement quite as alb
sorbing as that which accomplished
the opening of the war However
much relief and optimism we may
justihably feel about ending the war,
a great deal of prudent navigation will
be necessary before the country swings
back into its former steady and pro
gresSive stride. 1t is too soon to cal
culate upon an early return of the
100000 American soldiers now in
France. In all proba bi1ity a large
portion, If not the whole, of this great
army will be held there as an army
of occupation for a long period after
the armistice is signed their presence
being necessary to enforce q Satisfac-
tory peace and possibly even to main
tain International order among our
former enemies who may be threat
ened with chaos. Bringing back
these soldiers will be a slower process
than sending them ont, for the reason
that British ships which took so per
cent. of our men across will be wanted
for British service, and we own but a
limited supply of tonnage adapted for
transports.
One important effect of peace will
be the stoppage of war industries
which will at the same time increase
nf Ind OF "a
next most important, also the most
difficult, question will be that of tax
alton. The strain of war upon our
finances has been tremendous; the
more so because of the vast sums
loaned to our Allies which will have
to be finally returned. Practically all
of the countrys savings have already
gone into Liberty bonds, causing a
heavy withdrawal of funds from in
vestment channels. This was strik
ingly illustrated by the latest returns
of new security issues in the principal
Eastern States, which for the ten
months amounted to only $1,080,469
900, against $1,397,912,8 last year.
In October practically none were is
sued, the $25,000,00 American To-
bacco notes being simply renewals,
while the $22,5O0.000 Baltimore &,
Ohio Railroad notes were also extend
ed. AS to new interpretations, the con-
trast is still more striking. New COM
panies with a capital of 100000 or
over in October totaIed 1874, $4,000.
as compared with $3S1,145,700 a year
ago. Concerns having a capitalization
of 100000 or over, reached a. total
of $57, 665, 900, against s308,513,7o0 in
the same month of 1917. The most
potent effect of these enormous war
loans has been apparent in banking
circles and in the additional strain up
on credit, imposed when the demand
for funds was augmented by general
imitation of credit and commodities.
1t is all the more important, there
fore, that the problem of taxation re-
ceive thoughtful attention from Con-
gress with a. view to intin1ating a grad
ual reduction as soon as possible
The country is quite prepared to
carry a heavy load of taxes for years
to come, but there are some highly
Objectionable provisions in the present
method OF taxation, which in the in
terest of domestic peace and prosper
ity should be moderated if not re-
moved as early as possible.
Peace will also bring great changes
in commodity markets. Nearly all
levels, thus keeping the cost of living
unnecessarily high. In most instances
peace will release large quantities of
merchandise held in storage; in others
it will increase the demand for many
articles, such for instance as cot
ton, wool, rubber copper, etc, of
which the Central Powers hold prac-
tically none; while in still other cases
it will increase the demand for food
to meet famine conditions in countries
devastated by the war. 1t is safe to
say that the business world faces
more confusion and uncertainty than
ever before. We may feel really
hopeful and even optimistic in the be-
lief that the world has already en-
tered a, new and better era; but this
state of mind should not blind us to
the fact that the path of progress
and prosperity is strewn with innu-
merable pitfalls and dangers.
Last but not least among vital fac
tors is what will the Government do?
Our own Government as we'll as
others has plunged so deeply into re-
gulation or control of business, that
Withdrawal will necessarily be gradual
and slow. Any other procedure would
bring disaster, a. fact fully recogniZed
so we may as we'll prepare to endure
present paternalistic methods for a.
reasonable period at least. There is
growing restlessness over the excess
, of government interference, and
corresponding growth in the desire for
less restraint or for some opportunity
to quote President Wilson'S phrase,
for self determination" The striking
change in the Congressional election is
no doubt partly due to this feeling,
although such results can always be
! traced to a variety of causes.
In the momentary situation there is
! limited change for the bitter, the diff
Guilty in securing time loans being