New Britain herald., 1918-08-03
Henry Clews
Weekly Letter
Especial to the Herald)

though victory may not be imm cdiate,
it is mure assured than at any time
during the struggle. The German
offensive, which began March last, has
completely failed in its prime Objec-
! tiVes; the initiative row having passed
to the Allies, whose strength increases
daily through the rapid arrival of
fresh and eager American soldiers
who are already making themselves a
telling factor in the military situation.
The day cannot be very far distant
when the German military power will
be broken; and the vast structure will
disappear from the map. Germany,
by continuing her methods of warfare,
j faces ruin misery and hate as penalties
tor the exercise of ruthless cruelty
and ambition; while the Allies face
freedom and the Hottest hopes in
human history One of the most UNI
toward events Of the week was the un-
fortunate pacifist statement issued by
the Marquis of LansdoWne, whose high
reputation as a statesman gave undue
weight to his utterances. His words
can only result in encouraging the
enemy. prOlonging the war and aggra-
waiting the troubles of the Allies.
Tremendous activity exists in every
line OF industry connected with the
war, proving the energy and deter
mination in which this country Is
conducting the struggle. Steel of
course leads in Importance, because
it is the most essential material IN
war. The government is steadily ex-
pand ing it's quota of the output; and
only q small percentage is granted
for other purposes. The largest ton
mage at present is for ship steel, but
tIn Fo,~ oil ~ TO, a l-
upon Il growing scale. The Steel Cor
poration's earnings for the last
quarter were simply phenomenal,
amounting to s153, 100000, of which
over $9O,OOO.OOO will go to the gov
eminent in taxes. Steel wages have
again been increased, and are now
double what they were in 1915. Tex
tile industries are correspondlngly
busy, and though not making such
extraordinary profits are still enjoy
ing much prosperity. For all raw
materials there is an excellent demand;
and while scarcity is often less pro-
nounced than during the early stage
of the war, prices are maintained at
high record. Wages are generally adj
vancing; costs of production rise in
consequence: then the demand for
still more wages is repeated, and so
the serious practice runs on. APP
parently nothing can stop this rising
tendency of prices except exhausted
buying power and imperative econ
omy. The latter is already appear
ing, sometimes as a patriotic neces- !
sity, but chiefly because in many |
families buying power is on the de- |
cline, luXuries are entirely omitted, |
and in many instances the consump-
ton of essentials is materially cur
tailed. Economy, however, is not |
popular either with those enjoying |
war profits or war wages; and war !
industries will certainly be active for |
months to come. 1t should be re- !
mem bered that the bulk of the S24,- |
600. 100000 which this government |
expects to raise by loans and taxa
ton during the present fiscal year will |
be almost entirely spent in this cOun- |
try. The tide of war imitation Is still |
running strong, in spite of more fire.
Quent reactions.
The Ways and Means committee at |
Washington is actively at work draft
ing a new tax bill. Almost daily i
statements as to what is proposed |
are given out for the evident purpose
of inviting criticism and testing pub
W
900 of revenue is claimed to be
wanted for the fiscal year It is hoped ,
to raise about $3,0o0,o00,0O0 of this
sum from excess profits taxes; but
that source of revenue has already
been largely utilized. Hence many
new taxes seem likely to be applied
and others heavily increased; but the
schedules are far from decided upon
Wi hi
scale down some Of the most
radical proposals; so t hat there
is good reason to hope for a simpler
and more rational bill than the one
existing. The public, however, may as
we'll be prepared to accept a radical
increase in taxes to meet which
widespread public economy will be
imperative. Congress will doubtless
seek to avoid financial suicide by
oveTburdening productive industry
Thus far the war has cost Great Bri-
tain $40, 1000, 900 in four years, and
the United States since entry about
$4,000 ,O00 900, of which $6,500,00O,-
600 were loans Of our Allies. We are
now spending money at q higher rate
IMAM any other country, our expenses
being figured at $50, 100000 per day.
and those of Great Britain at over
$5h,00o,00O per day. 1t is now an
nounced that another loan will be
issued about the middle of October.
the campaign to commence i'll the last
week Of September, the amount named
being $6,000,00O,0
The future Of the money market is
som eWhat involved and scarcity Of
funds and high rates of interest are
inevitable results Of the war. Very
soon preparations for the next loan
Will be in order, and during the inter