The Bridgeport times and evening farmer., 1918-11-04
CLEWS'
WEEKLY LETTER


the Allies have won a glorious vic
tory; victory of right over might,
of civilization over barbarism, such as
the world has never seen, or scarcely |
dared expect. The actual finish /
may be delayed; for a hasty peace
might easily be dangerous peace, |
and time will be required for solu-
ton of many new problems. The1
map of Europe will undergo extra |
ordinary changes; stormy times may
be expected; also great social and
economic changes. But this is the |
dawn of a new and brighter era. The |
effects at home will be widespread. |
While considerable of our army may
be detained abroad for period, de-
mobilization must soon begin; war
like activities will decline, and trade
and industry must be readjusted grad
uaIly to peace conditions. We will
then be obliged to send large quanti-
tiesties of food and raw materials to
Europe, for which we will have to
give credit, because goods to send in
payment are scarce. Along with
peace there will come a sense of re-
lief and a new hope; and though the
near future is full of perplexities cour-
age and resources are in abundance
! to meet them.
Liquidation was the feature of the
stock market during the first half of
the week due chiefly to the Money
| Committees warnings regarding the
monetary situation. The downward
| tendency thus initiated received fur
Their impetus by reduction of the
| United States SteePs extra dividend
from per cent. to 2 per cent, an
impressive reminder of the effect OF
war taxes. Quite number of 9TH
er industries not engaged on war con-
tracts are also showing impaired gross
and net earnings resulting from
heavy taxation and followed by small
err margins for dividends. Even
| where present returns are not threat
| ened, the effect was to weaken values
because of the prospects of diminish
| ed dividends. 1t Is fortunate in
deed that there has been so little in
flation in these stocks; for had prices
really reflected either recent enor-
nous earnings of. possible higher
dividends the resulting fall might
have been disastrous. In some quar-
tiers the reaction was partly attribut-
ed to the action of big holders iqut-
dating on account of the money situa-
ton. Be this as it may, the decline
was we'll distributed throughout the
list and included railroads and peace
industriaIs as we'll as war shares.
Some of the specialties including GER
tain peace stocks which had been
I eIaI~ N1yT or n
induced much needed caution in GER
tain quarters During the latter
portion of the week a reaction set in
and prices again showed a rising ten
dency caused in part by peace pro
gress short covering and good buying
from influential sources. The col
lapse of Turkey and Austria with
Germany likely to follow naturally
strengthened the peace stocks.
Taxation has now become a distinct
factor in market values. Were the
war to be prolonged and taxes rise
to a still higher point, further de-
preston would be unavoidable. As
however, the war approaches the end
taxes must in due time become less
and less burdensome, even If imme-
diate relief is improbable. On the
London market prices secured a
much higher rise some time ago than
was the case here: while not few
restrictions regarding the money mar
ket and new issues in that market
have been moderated or removed. In
J all probability some such relief will
follow here as soon as requirements
of the government for the next few
months can be more closely approx
, mated. The burdens of war, how
ever, cannot be escaped for a long
period to come.
There is much talk about after-the-
[ war policies, and nothing practical
has yet been decided upon for either
domestic or foreign. trade. Both
must shortly return to peace co1.dt-
tons, and various commercial bodie:
and large business concerns have al
ready devoted much attention to tht
subject. Domestic trade has come
under government control to a de
gree far beyond the most ardent So
cialistic dreams. Suddenly we arc
faced with the question: VIII the
government indefinitely continue It.
regulation of prices, production ant
tration will aim to avoid the injuries
arising from too sudden changes. The
future of business, however, for the
next year or two will not entirely de
pend upon what the government does
a Economic law will gradually reasser
itself in spite of official interference
= and the longer natural forces are hel.
= in allegiance the more difficult and
hazardous will 1t be to restore them
8 Commodity prices are fabulously higt
g despite government regulation, which
g has accomplished little beyond i'm
n posing a somewhat mild restrain
> upon profiteering. Values are nov
upon such a dizzy level that con
d sumption Is being restrained by i'm
Y paired buying power much more tina!
n by any Federal interposition. Indi
:, cations are that the apex has abou
s been reached, and that reaction whic!
peace may stimulate should soon bt
r evident War waste will soon stop
!, and gradually the many millions nov
n EMPLOYED in destruction will turf
e brains and energy to production, 81
5 that before very long scarcity shoult
a become less and less pronounced, 4
/ sudden fall in prices would certainl!
n prove a misfortune and is not proba
BILE in view of the worldwide scarcit!
=. of materials and labor On the 9th
L err hand a gradual fall would stimu
% late consumption, expand buying pow
err and prove the basis for a new ant
wider prosperity, With the comm:
of peace there will be other eneour
aging changes. New and broade