The Bridgeport times and evening farmer., 1918-01-01
of Finance

OlALy hSSp JCdlOuSy dl1f0 and limit her purchasing powers from the United States. France, too, will also show great resiliency. One of the most serious after-war problems will be that of deflation; Germany, Russia and France have trebled or quadrupled their issue of paper money. England is the only leading nation in Europe redeeming it's obli- gations in gold.
 Effects of War Upon United States.
 In the political machinery of the United States revolutionary changes have alEeady taken place and others are imminent. Within a few short months government regulation of in- dustry has been established on a scale that would have required many years to put into effect in times of peace. Our vast railway system has come un- der government control. and is not likely to return to the old system of scattered private management Rail- road unification will remain, and the tendency of centralization promises to surpass the widest dreams of even a disciple of Hartman. Government ownership is not yet in sight, but government control has been adopt ed, to the benefit of the public and the railroads alike Government reg ulation of industry has also been ac- cepted on an elaborate scale, though likely to be less permanent than in the case of the railroads. Control has been confined chiefly to distribu- tion and price fixing, the policy of the government having wisely been to allow liberal profits in order to stim- ulate production without permitting profteering. The policy of price fix ing under MT. Hoover has been emi- nently successful in restraining profiteering. but has not succeeded in lowering prices; nor is that possible when the entire world is threatened with starvation, or until production has been increased. When peace comes some of these government ac- tivities will be closed, although a large measure of control over indus try and trade is sure to remain.
 Upon the United States the most striking effects of war have been a marvellous expansion of banking power; the change from @ debtor to creditor nation! a sensational de- velopment in our foreign commerce; cantile marine; the birth of an i'm portant chemical industry; the great expansion of our steel industry, and the raising of agricultural products valued at $21,O00,000 1000 compared with $14, 100000 a year ago. On i the other hand Germany as a result of war has lost the second place as a maritime power; also her foreign ] trade, her colonies her Far Eastern i schemes, and her chemical industry; i not to speak of internal political, so- ! cial and economic derangement and ] her lost standing among the nations ! of the world. Against these losses she has a poor offset in the varied | slices of territory which she has seized l in Europe, but will not be permitted 1 to keep.
 l Perhaps the greatest surprise of the war was our suddenly developed power as an international banker. Since the war began we have loaned Europe over $S,000, 100000, most of which was expended for munitions produced within our own boundaries 1 We have practically repurchased all American securities held abroad. We | have extended huge loans to all o1 the Allies, and changed from being . debtor to a creditor nation. For the last 12 months we have been the leading banking power of the world | In the process we have accumulated a vast store of gold, amounting tc considerably over $3,00O, O,000,O0O. We are the only country that has bene- fited largely by the war; and this | through no selfish effort of our own Some of the bell1gerents are already on the edge of bankruptcy. Great Britain suffered relatively less thar any other nation, excepting ourselves and will undoubtedly recuperatt rapidly. But no nation will be st well prepared for great forward strides as the United States with it! increased prestige, it's great banking power and it's immense and highl! organized industries. What the flu. ture holds in store for the various belligerents is not divulged; but
 is encouraging to know that histor, | proves that all nations have usually shown unexpected recuperative pow
 CTS after war.
 Rebirth of Shipping and Chemica
 Industries.
 | Another remarkable effect of the war upon the United States has beer our almost instantaneous leap iron the bottom as a maritime power tC next to the top. Thanks to the sub l marine, we were forced to offset 1t. ruthless work by building ships tC the extent of over 100000 tons il 1917, while in 1918 it is expected Vt shall add another 2,500,0 tons Oul
 present building program calls fol nearly 5000 900 tons. Thanks to the
 submarine again, we shall quickl!
 occupy the place which German!
 formerly held as second maritime
 power of the world. Great Britnil
 still easily holds first place, whic1
 she has retained for many years a the largest carrier, the larges
 banker and the largest merchant il
 the world. Her great mercantil,
 fleet is the outgrowth of her vas
 empire and the enormous commerc'
 built up by her worldwide libera
 policies. Our own newborn ship
 ping industry, which came to us sc
 unexpectedly, has critical period t
 face. It was created in a time O
 fabulous freight rates and has yet tt meet the stress of intense foreig1 / 1 competition. Europe has long beer
 able to build and operate ships mucl
 more cheap1y than we, through pos
 session of a supply of skilled labol
 and management not yet available il
 the United States. Our success il
 meeting foreign competition will de
 pend entirely upon givng our shp
 owners a fair chance to conduct thei