The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-02-11
of Finance


a similar plan in Great Britain hav-
ing worked very satisfactorily. This
would seem to be a more desirable
scheme than the control of such is
sues by the new government bank
Another objection to the latter pro-
ject is the proposed power to issue
$4,000, 900, 900 of short term notes sub
ject to rediscount at the Federal Re
serve bank; a power that might easily
embarrass that institution at a critical
period and might also create excessive
and hazardous imitation of credit.
Such a bank as suggested would have
extraordinary powers, and as it is
proposed that it should be controlled
by a board appointed by the Secre-
tary Of the Treasury and responsible
also to the President of the United
States, the plan has the weakness of
reposing to much power in the hands
of one or two men who are already
overloaded with back breaking re-
sponsibilities. Moreover, if such an
institution fell into less capable hands,
the risks would be vastly multiplied.
Congress will do well to consider this
bill strictly upon its merits, abso-
lutely free of party consideration, and
decide whether such power should
either be granted or SO excessively
concentrated.
Secretary McAdpo's call for 81, O0O,-
900 900 before the next Liberty Loan
in April was somewhat of a surprise
1t came in the shape of a request that
the banks and trust companies
throughout the country Immediately
set aside portion of their resources
regularly for a period of ten weeks,
for the purpose of taking $500, 900, 900
or more of per cent Treasury GER
tiffcates to mature May 9Th. Secre-
tary McAdoo's object in this proposal
is to postpone the Liberty Loan until
a period more favorable for its wide
distribution, but the imperative ne
cessity of providing funds for our
selves and our Allies to push the war
at critical period brought forth this
eXpedient, which VIII undoubtedly be
successful because the banks are in
strong position and so1idly behind the
government AS the certificates can
be used in payment for the next Lib
strain upon the money market and
provide the government with neces-
sary funds.
Progress is being made in the new
railroad bill now before Congress, the
last proposal being that the govern
ment take over control for a period
of 10 months after the establishment
of peace. AS some months must
elapse before the war ends, and peace
discussions will probably occupy a
Iyear more or less, it will easily be
three years or more before the roads
will be returned to their owners. The
bill contains various provisions for
compensation to the railroads; for the
self-control of their finances, for the
rights of employees, ETC., which Will
lrelieve the railroads from serious I'M
lcertainties for the duration of the wal
and the IS months subsequent This
should help restore the credit of the
roads, and serve to remove one of the
most serious elements Of distrust in
1.-The security market.
Stock market operations are being
conducted upon conservative INES
IIiuuidation has been unusually thor
lOugh; Few STOCKS are IOI ScIL0, ebllN
there is good buying on every 1mpor
liant decline. Values seem to fluctuatt
freely within certain limits, provins
a healthy degree of elasticity. .
course the controlling factor is the
war, peace rumors having a stimu
Hating effect and prolongation of the
war the reverse. Money is likely t.
continue firm in view Of governmen
requirements, and the granting O
credit may be confined as much a.
possible to necessary demands.
The Tuscania incident exeScised
decidedly SOLDERING effect and nat
urally tended to depression. We ar
now approaching a critical period
: Preparations are undoubtedly belni
made by every belligerent for ener
getic prosecution of the war with tn
opening of spring which is drawln
near. Present inactivity at the iron
is not without its significance. Ger
many appreciates that she is perhap
: facing the final decision. This Is Ger
; tainly the hope of the Allies.