The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-08-19
HENRY CLEWS
WEEKLY. LETTER

Oh Qeclnlng morale IN the German
army are increasing daily. German
commanders now realize that the AL
lies have seized the offensive, and that
they must choose between disaster and
retirement. They wisely take the lat
ter. Victory for the Allies Is now
only question of time. Patience and
sacrifice may still be necessary; but
If 1t is true that the Administration
intends to send an army Of 100000
into France, the sooner Germany sur
renders the better for her own good.
This is not the season for expecting
business activity, vacations and heat
having materially intensified the usual
midsummer quiet. The money mar
ket, however, continues to be the chief
restriction upon all sorts of business
operations. Funds are scarce while
credits are practically rationed. Our
banks are in sound condition, and
their resources ample despite the ire
mendous strain imposed upon them by
the edgencies of war. Preparations
for the coming Liberty loan are al
ready we'll advanced. The govern
ment this year will, 1t is claimed, re-
qutre heavy increase in bonds and
taxes for war purposes, and though
practically all Of it will be spent in the
United States, it represents only part
Of our total business transactions.
Commodities and wages are on a high
level, and with general imitation more
funds are required to perform a given
service; hence the limitations imposed
upon credit. These restrictions are
perhaps felt more keenly in the f1nan-
cial district than elsewhere. New en-
terprises are postponed, the financing
of others is rendered more difficult and
financial operations generally are un-
der restriction. There are some who
would like to see such restrictions
moderated, in order that business
might pursue a more natural course
and better enable it bear the coming
/ burden of taxation. Government
regulation is bearing heavily upon in
dustry and not always with an even
| hand; and, which such restrictions are
! cheerfully accepted as war necessities
| there are instances where they are
positive hardships and where modifi-
cation would be helpful. There is no
| doubt that the government does not
| wish to render business unproducttve
and the chief complaints arise in
| quarters where too much power has
been placed in inexperienced hands.
On the Stock Exchange there is q
cheerful undertone, based upon the
more satisfactory course Of the war
The chief offset next to monetary
e-+1~ TOW -Ca107
imposing a rate of 80 per cent upon
war profits. Secretary McAdoo's
plan seems much more feasible thar
that proposed by the Ways and
Means Committee. 1t would, OF
course, materially reduce the amount
finally distributed to stockholders
though it would not impair ordinary
| profits. 1t is for the latter reason
that the big industrials have borne
the brunt of this tax with so little
Injury. AS most of these industries
are working under government regu
lations and price-fixing, it practically
amounts to the government using
these concerns to raise money b!
regulating their profits and appropri
attng certain proportions by taxation
Industrials have faced more uncer
tainties than any other class of secur
tiles, with the result that the wal
shares have profited immensely
non-essentials have endured more O.
less reverses. Railroad shares ar,
showing a steadily hardening tend
ency, owing to the belief that tn
government will not insist upon un
fair or injurious terms in its new con
tract with the companies. Delay
however, causes disappointment
Should the agreement meet expecta
tions it will bring the railroads bacl
into favor among investment classes
Many of the strongest and best issue
are selling at relatively low prices
this being one division of industry il
which there has been practically n
initiation. Public service issues are at
,, tracing more attention, chiefly be
cause of the fact that everything the
buy has risen, while the only thing
they have to sell-light, heat, powe
and lectricity-remain stationary
In consequence, many stocks an,
bonds formerly considered gilt-edge
are now selling at bargain figures
Hope of fair play began to develo
when Mr.. Hughes decided that in tn
case of a certain Brooklyn Gas Com
: pany the 80 cent rate was conffsca
tory, and that $1.25 was a fair rate
! But a fresh shock was receive
7 through an injunction preventing tn
; company charging more than 9
cents, and it looks as if the publ
7 service corporations may have to con
tinue long fight before they secur
fair operating terms - 50 deep root
z ed is public prejudice, upon whicl
/ politicians are not slow to play. Gro
news has not been favorable. Sever
heat and drouth did considera bI
r damage to corn, cotton and othe
/ crops. Wheat, however, is Iarsel
, harvested and therefore escaped seri
Gus harm. August is often a mont
of deterioration, but this year W
had hoped for bumper crops gener
ally in order to better aid our allies
. In all probability we shall still secur
more than average yields, but tn
country must be prepared for mucl
: more vigorous ration;ng of food thai
any we have yet experienced. Will
stock market conditions are sound
and prices often show a hardeninj
: tendency, no special activity can b.
expected as long as money continue
so scarce. Fluctuations keep within
moderate limits, and the spirit of con
fidence exhibited ON this side is aide,
by more optimistic reports from Lon
don. which is practically the onl
) money market in the world outside o
New York, which is still the con
trolling factor. If the war continue
l to go in our favor optimism will ris
5 and prices will be favorably affected
but monetary conditions are advers
L To 9th rrrnn+ nnti1,it,r Or n -nne.-