The Bridgeport times and evening farmer., 1918-08-28

ically discounting peace prospects. Consequently present inertia should be patiently borne and regarded as only a passing condition. After the war there will be quick resumption of activity, not only to fill the great voids created by five years of destruc- ton and starvation, but also to meet the requirements of new and deferred enterprises. Our factories, our rail- roads, our ships, our merchants and our financial facilities will all be tax ed to the uttermost; and, although the sailing may be rough during the reconstruction period, the daring and the skillful will win big rewards.
 The country is still intensely inter- ested in the outcome of new tax leg islation It is expected that the new bill will be ready in the coming week, and that it's most striking feature will be the heavy taxes on excess profits and upon war profits. Secre tary McAdoo is more severe in his proposals than the Ways and Means comittee When reported by the latter body the bill will go to the Senate, where it may be considerably modi- fled. It would be unwise to impose extreme burdens upon the chief source of new capital, which cannot be ex- hausted without injury to capital and | labor alike. Dividends upon many industrials are already declining, and smaller returns will be made in 1 1918 than in 1917. Intelligent ac- tion, therefore, will be in the direc- ton of preserving this source of reve- nue, rather than destroying it, which would impair our ability to carry on the war. At this writing MT. McAdoo has not completed the contract be- tween the railroads and the govern ment. The belief continues, however, that an equitable arrangement for se- curity holders will be consummated; ; especially as that would materially aid the administration in making the government regulation of railroads a complete success, such being Secre- tary McAdoo's ardent ambition. I Stock market activity is still being conducted upon strictly conservative lines A few specialties were partic- ularly active; the shipping shares, for instance, which f1uctuated sharply upon rumors of a big consolidation that was promptly denied. The steel shares also attracted considerable at tention, owing to pressure from the government, which needs a produc- ton of 23,000O00 tons next year in stead of 16,5OO,OOO tons this year Government bonds have beer strengthened by war news, though the rise in United States 3 F S was due te | ilege.- French and British issues also
 experienced a good rise; and ever Russian issues are upon a higher
 level, owing to the action of leading bankers for the purpose of protecting the interests of holders.
 The money market is still the mos important financial factor, next to the war. While as already said credit i! more or less restricted, it is satisfac tory to note that the government ha: refrained from defining what is essen tial in this respect and what is not wisely leaving it to the banks them
 selves to decide as to the desirabilit! of calil and time loans upon securi ties To place impediments in tht way of making loans of this character
 
 ods would be a step backwards; fol this is one of the soundest and safes forms of lending credit. The objec of this proposal was presumably tt check undesirable or excessive specu lation; a purpose which bankers ar' already earnestly pursuing as mat
 ter of good business policy and self preservation.