The Bridgeport times and evening farmer., 1918-03-04
of Finance

strength. But the Allies are more than equal and are awaitic-s the 'su- preme drive" on the Western front drive which has been so spectacu- larly advertised that it would not be surprising if it were a cover for an entirely different plan. Meanwhile American troops are crossing the At lantic in large numbers and are add ing to the strength of our Allies.
 All departments of our national ac- tivities are deferring to the necessi- ties of war. The administration railroad bill, which will permit the administra ton to carry out the broad minded plan of railorad control, all ready has passed both houses of Con- gress The administration plans are so well known that they do not need repeating. As a broad proposal they
 assure stockholders of sufficient rev. enues, regardless of increased ex- penditutres of all kinds which have resulted from the war, to justify the belief that dividends which have been llegitimately earned in the past will be continued and that physically and financially their properties will be re- turned to them in at least as sound. a position as they occupied during the war. The administrations FI- nance bill also may be expected td become a law in a short time. The object of the measure is to enable the Treasury to provide capital require ments of essential industries. It is a war measure pure and simple. The government has undertaken to con- serve all the technical resources of the country in order that there may be no unnecessary competition when the
 war loans and other of our Treasury obligations appeal for public sup port. Hence Secretary McAdoo and his advisers have deemed it a neces- sity that other provisions be made for financial aid for corporations which are so seriously affected by these new conditions Money is showing in- creasing scarcity for time accommo- dation-a feature which is encourag- l ing a more general use of demand loans. However, we are fortunate in having a national financial system based on sound principles. It appears quite reasonable to assume that am | pie financial facilities will be made
 available as the date approaches for | the offering of the Third Liberty
 Loan. There no longer appears req
 son to doubt that the rate which this
 new issue will carry will be 4 1-2 per
 cent. and that it's general terms as to
 it's exemptions from taxation will not
 differ essentially from the recently is
 sued 4 per cents.
 l oIrsSo-naI a
 wider appreciation of the new trans 1 portation situation. Equipment stocks
 display an improved demand because
 of prospective orders from the rail- iroads. Traction and public utility se-
 curities in general, not unnaturally,
 are suffering as a result of the re Imarkable conditions that because of the war now are ruling. With prices of their products arbitrarily fixed by law or regulated by State boards, they are not able to increase their incomes to meet the extraordinary advances that have occurred in the cost of labor and of all materials they lreuuire in the manufacture of their Iproducts Oil, for instance, which is Isuch large and necessary factor in Ithe production of gas, and cOa1-an-
 other large and necessary factor Iboth have advanced in price very se-
 verely. But prices of gas to the con- lsurner in most instances cannot be advanced to meet these other in lcneased costs. In the same general Icategory are the traction companies Iwhichh. speaking broadly, are com lpelled to remain a Dc fare. Some in- ldication of the brden of this situa- ton is contained in the fact that di- lrectors of two of the local lines con- lsidered it necessary to pass the inter-
 est on the adjustment income bonds land the Brooklyn Rapid Transit di- lrectors this week deferred action on
 the dividend.
 The immediate outlook appears
 more than ever to be bound up with
 the progress of the war.