The Bridgeport times and evening farmer., 1918-05-08
The World of Finance
.rop of about 100000 bales.

crop of about 15,0O0, ,o0o bales.
 Taking into consideration the sur plus left over from last year, there is no fear of a scarcity of this staple during the coming season. Cotton has had remarkable break, and the decline should help solve the prob lems of our manufacturing interests It will ss%o check the agitation for price fixing, which was being pushed with vigor. The steel industry is somewhat deranged by the necessity for concentration upon essential pro- ducts, leaving the non-essentials to the future. There is an insistent demand for steel plates and other materials for our Allies, Great Britain, France and Japan. In view of the fact that the war threatens to be continued with growing intensity, it is quite probable that a considerable period may elapse before the production of essentials is resumed. One nota- ble example of the demand for essen tials is the placing by the government of $60, 0,000,000 order for locomotives with two leading manufacturers. Enough of these engines are to be ready in order to avoid a deficiency of motive power, which had so much to do with the breakdown of our rail- road system last winter. This order also supplements that recently placed for 100000 freight cars, valued at nearly $500, ,000,O ,OO0, which will doubly insure us against a repetition of the coal shortage.
 The effect of war upon new capital issues is very striking, as might be ex- pected when the government was en- i deavoring to gather in all the availa- ble funds for the Liberty loan. On April the recorded issues from the 1 leading states were only $23,800,000, compared with $130,O0O, 900 last year l and $220,000,000 in 1916. The total l for the first four months was $S33, ! 000,000, against $S38, 100000 last year and $9S2, 1000 the year before. Of this total only about 10 per cent. was for the railroads, and in April the is sues on this account ceased almost en- tirely, owing to government control. | On the Stock Exchange there was some revival of activity, accompanied l by a decidedly more optimistic tenn per. This was induced by the success | | situation, by satisfactory business con- ditions and by a good crop outlook. | The action of the government in meting the financial requirements of New Haven and New York Central also had a marked effect, inasmuch as it confirms the belief that the rail- roads will receive fair treatment under government control. During the four 1 months of government operation, over 0,000, 900 has been advanced to the railroads as loans to meet their obli- gations. In about two weeks the War Finance Corporation will be ready to
 commence operations and the rail- roads and public utilities also will re-
 ceive the financial consideration to
 which they are fairly entitled The
 belief that our railroads cannot ever
 return to pre-war conditions excited
 considerable distrust at one time; but
 the action of the government just re-
 ferred to indicates that reason and
 justice will play the chief part in such
 relations, and confidence is cores
 pondingly returning. Many railroads
 are selling at exceedingly low prices
 some of them at half their real value
 largely owing to the former f1liberal
 policy of the Interstate Commerce
 Commission. Certainly there is no in-
 fiation in railroad shares; though
 there is very considerable imitation in
 commodities and wages. Now that >, the bond campaign is over there will be less pressure upon the money
 market, and railroad shares are likely
 to receive more attention from careful buyers. Income tax payments will
 soon be in order; but these have beer provided for in part and will, ot
 course, be financed much more easily than the bond issue. Finally it should
 not be overlooked that the South anG West are exceedingly prosperous
 owing to high prices realized for agri-
 cultural and mineral products, while the East is correspondingly prosper
 ous beca use of continued industria. activity.