The Bridgeport times and evening farmer., 1918-01-29
HENRY CLEWS
 WEEKLY LETTER

The war outlook continues perple2,- ing, and military operations are dead locked by unfavorable weather condi- | tions. There is, however, a growing l belief that peace is not far distant. | This belief is seemingly based upon | the signs of breakdown in Austria, ! and growing discomfort in Germany. | At this writing it is impossible to form any reliable conclusions; and the vari- ous rumors should be accepted with reserve owing to the difficulty of se- curing reliable information. The Ger man Chancellor's peace message re- vealed a desire for peace, but was so evasive and impossible in it's terms as to be disappointing. Some conces- sions, however, were made and in due season others may follow.
 The President is now coming in for some criticism in connection with progress of the war. With the poli- tical and personal aspects of such cri- ticism, these financial advices have not the slightest concern. History warns us that all governments pass through such crises; especially in the early stages of war, and it was only patriotic desire not to embarrass the administration that prevented an ear Her outbreak. Both Washington and Lincoln had to endure bitter hostility during the great crises which they weathered successfully. MT. Wilson will probably have to do likewise. The great leaders in France and Britain have passed through such attacks lxr-Sf fIa I -4orr Ill .I1ol We; though it is unfortunate that party politics or personal issues should have been allowed to intruGe. The Chamberlain episode will undoubt- edly have the effect of speeding up and increasing the efficiency of all war activities. Whatever criticisms may have been made concerning the | Presidents appointments and his poli- cies in domestic affairs, and these are not infrequent-his foreign policies have been singularly sane, just and high-mindcd. No man has more clear | ly spoken the mind of the American people and their attitude toward Ger many than MT. Wilson.
 We are approaching the period for new government loan, preparations l for which are already well advanced. Secretary McAdoo has intimated that the huge sum of $10,00Q, 100000 will 1 be needed for war and domestic ex- penses between now and June 30. This is a staggering amount; but whatever portion is issued as a loan, it will doubtless be liberally taken, necessity plus patriotism insuring its success. Not less than $3,O00, O0O,0 of this sum will be raised by taxes, so that the exact amount to be issued in bonds is not yet definitely known. Of course, this means that the country will have practically no surplus sav- ings for new enterprises for some time to come; and the government is al- ready considering steps towards dis couraging investments in other direc- tions; this being in line with the pol icy of the British government adopted early in the war. What the rate will be is not yet divulged. Sound bank ing would dictate either liberal rate or slight discount in view of the prices at which the two previous loans are now selling. Such a policy would encourage a wider public dis tribution than special privileges which would appeal chiefly to big in- vestors who would turn over a large proportion as collateral to the banks which already hold large sums ot these bonds. Of if such terms are not practicable, then I would renew my previous suggestion of a 3.65 pel 1 cent. three-year Treasury note bear ing interest at the rate of 1 cent { day, such notes being convertible into per cent at maturity.
 Popular public opinion is, of course adverse to high interest rates: but, i \ guided by disinterested advisers, tht public would probably moderate it \ objection. The loan would certainl, be more popular if the direct return were sufficiently liberal; and ther
 are many sound reasons, political ant economic, for securing as wide and a permanent subscription as possible It is certainly good policy to hav
 these bonds widely scattered and il the hands of the general public, rath
 CT than concentrated in the hands 0
 large investors and big financial in
 stitutions; although in any event tn
 latter can be depended upon for do
 ing their full share in supporting tn
 loan. It is both symptomatic an
 
 savings banks are considering the wis
 dom of advancing their interest rate
 in order to prevent the lowering c
 their deposits, which thus far hay
 not been seriously affected by the Lib
 erty loans. If the safest and strong
 est financial institutions in the coun
 try recognize the situation by pay
 ing higher rates, there is no reasO I why the government should not rais
 it's offer; not to the extent of com \ peting with the savings banks whic 4 for obvious reasons is undesirable, bJ
 to meet the conditions of supply an
 demand. Inducements of this sol
 would unquestionably make the loa
 big success and hasten a victorioU
 conclusion of the war. The amour
 of the loan proposed is largt
 It is not beyond our capac
 ity, and should not cause tn
 slightest uneasiness. This sum dot
 not represent the losses of the war [
 the United States. A consfderabl portion of this $10,O 1000, 900, 900 will [
 allotted to foreign governments. an
 spent in this country for munition
 A further considerable proportion wi
 also go into ships which will be
 service after the war and prove good asset. Very large outlays al
 also necessary for the navy, war
 no war Much of the amount apprt priated for food and clothing wou
 also have been spent in times of peat
 by individuals instead of the goverl . ment for the purpose of clothing ar
 feeding the soldiers. The net cost
 the war has not yet been disclose \ hut it will be much less for the ne