New Britain herald., 1918-03-26

sh:inkage in new enterprises, neces- sitated by the more pressing require ments of war finance. On the other hand, all war industries are intensely active and are practically certain to so continue for a considerable further period Today the nations chief ln- dustry is war. We have one supreme object; that of defeating Germany; and We are pre- -eminently absorbed, not only in equipping and provisioning our own army, but also those of our Allies who lean heavily upon the United States for materials money and men.
 More and more our industries are coming under government control. Each week sees an unwelcome but tn- cNita ble widening of it's powers in this respect: also a closer and more ef- fective coordination of the various industries for the purpose of moro vigorous prosecution Of the war. Be- fore this war is ended there will be far deeper intrusion of government into business affairs than the most ar dent socialist ever dared to believe three short year ago; and in due sea son the problem will be how to un- scramble the huge and cumbersome eCNernmen ent machine which we have created The latest proposal is to take over or lease the telephone and telegraph lines; our government has gone still deeper into the shipping business by seizure of the 6OO.O0O tons of Dutch ships; the War Finance corporation bill has passed, and that institution will soon be affordinzr much needed financial relief: the
 president ,Elas signed the Railway ont authorized continuance of present steel schedules another three months: no little uneasiness is shown among tex tile man ufacturerS and cotton growers in regard to rumOrS of price fixing; there is also more or less opositiOn to price fixing of wheat, farmers natural ly contending the higher prices will stimulate production, while the gov ernment keeps an eye upon the politi- cal consequences of any further in- crease in the cost of living. Tn the latter connection a significant report of the Department of Agriculture shows that there are AZ millions more cattle, sheep, swine and horses in the world today than before the war. Tn the United States the number of cat tie before the war was 56 millions, now about 66 millions; sheep 4o.7 mil lions before the war, now 4S9 millions swine 59 millions before the war, now 71.S millions: horses 2O:9 millions be- fore the war, now 21.5 millions.
 The effect of war upon our great industrials has been very striking. At first profits were immensely enhanced by heavy demands and high prices. Gradually the latter extended to raw materials and labor; then excessive profits began to dwindle. Now como heavy war taxes, plus the surtax on excess profits, which will materially affect the results of future profits Nearly all our leading industrials are reporting large gains in earnings but net results are not proportionateIy as large, and in only a few cases are the results of the new taxes apparent because in many cases this years payments are being met out of sur plus profits in pre-war years. A list of 72 annual reports of leading indus trials shows average earning Of $25.49 upon common stock, compared with $2628 8 year ago. These declines will probably become more pro- nounced during the next few months. The railroad situation is unchanged, 1 except that uncertainty has been ended by the president affixing his signature to the War Control bill.
 Adjustment of the money market to war conditions continues to large ly occupy attention of both govern ! 1nent and pr1vate tinanciers. The eff feet on new enterprises is marked { Under the new law no enterprise Of importance can be launched or fin