New Britain herald., 1918-12-28

! but both Germany and Russia are
| overwhelmed by imitation, and threat
ened with Reputation and bank
ruptcy. There has, of course, been
! considerable imitation in this country
as is always the case in war; buy
thanks to our federal reserve system
AID the rigid conservation of our
bankers we have never crossed the
danger line. The efforts for raising
such immense sums for ourselves and
our Allies have been titanic, naturally
absorbing the country's savings SO
completely that little or no capital
was available for ordinary enter
prises. This scarcity Of money and
capital must be endured for sonne
months longer owing to the urgency
of after-war requirem ents, which will
necessitate q, further postponement Of
new ventures. When war demands
do cease, a heavy rush for capital
must be expected and the only check
upon inordinate development will be
high interest rates and high commod-
ity prices; conditions which are not
likely to disappear at a. very early
date.
A source of considerable apprehen-
sion at this time is our national legis-
lature. Drastic tax legislation, es-
its, threatens to dry UP the chief
source Of new capital which is the
savings of the we'll to do. and If the
present measure Is passed in its
present form its effect will be to stop
new enterprise and bring Oh business
depression. a moro moderate bill
should be provided, spreading the
burden OF taxation over g. longer pc
riod by bond issues and distributing
more eQuitably In directions where
taxes have thus fallen very lightly or
escaped altogether There is also
much concern over the tendency of the
government to absorb the railroads,
shipping, telegraph and other utili-
ties. which too effectuallY throttlea
enterprise in those directions. Pub
lie opinion does not yet warrant any
such move and these tendencies at
Washington are likely to arouse much
opposition.
The future Of our railrods is stfu
uncertain. No experienced judge be-
lieves they can possibly be run as
we'll under government ownership as
under private ownership. Besides,
public opinion as q whole is decided
ly against such a remedy, which is
only wanted by q noisy minority. If
satisfactory regulations can be put
into effect the call for public owner
ship would have no justif1cat ton.
Meanwhile the roads should be re-
turned to their owners as soon as
consistent with safety. and in strict
accordance with the promise made
when taken over by the government.
The labor outlook has caused much
unea siness, the unsettfement induced
II; orl,
being the chief cause. Pro baby the
situation will clear itself. There is
every likelihood of plenty Of employ
ment at good wages, and a shortage
of labor will be greatly relieved by
return OF men from the front. EN-
ployers, recognizing the situation. are
generally willing to make reasonable
concessions. The movement to reach
a better understanding on both sides
through discussion, getting together,
considering the other point Of view,
and bearing in mind the humanities of
the situation also promises to aid the
solution of an otherwise threatening
situation. Certainly if fair and
friendly spirit can be established be-
tween capital and tabor including rec
ognition Of their common interest
and cooperation to such ends, there
will be no serious trouble.
Among the difficult questions ahead
is that of shipping. We have built an
enormous tonnage; and though the
war is over the present schedule when
built will give us fleet of about TO-
100000 tons of Government owned
ships What to do with them when
finished is a vexed problem. They
have been built at extraordinary
cost, from two to three times that of
equal ships in Europe, and the Gov
eminent could not sell them except
at a heavy loss. AS about two and
a half billions have been appropriated
for this purpose, it will be seen the
loss must be heavy. If the ships be
chartered to American concerns. the
latter will be handicapped by heavy
costs of operating under the American
flag. It is proposed, therefore, to
compensate the American owner by
adequate subsidies, which, however,
would only aggregate the already ex-
cessive burdens OF the taxpayer, who
must then pay for the losses of opera
ton after supplying funds for build
ing. This is anything but good bust
ness for either Government or people.
For business men the outlook Is
promising, though confused by the
many uncertainties referred to,
Monetary restraints viii have to be
carefully considered, since there is
an unusual degree of imitation in both
financial and commercial affairs. |
Commodities are upon a hazardously !
high level, owing to worldwide scar |
city and high costs Of production, and |!
some recession must be expected. |
Should +h,a declines come Gra6uallV !
the result will be stimulating to bust |
ness by aiding a partial return to |
more normal conditions. In the agri- |
cultural regions there is much pros |
perity resulting from prevailing high |
prices: and in manufa curing districts !
the same is true, owing to high wages. !
In consequence there should be a wide |