New Britain herald., 1918-07-13

enue. and by utilizing these the drain comes heaviest where the supply is greatest. Taxing excess profits s much wiser than government owner ship, because it automatically adapts itself to fair methods; and where there arc no excess profits the super taxes do not apply. Moreover the permission of excess profits is justi- fled on both moral and economic grounds In the first place the gov ernment takes the excess. so there is no prOfiteering; and in the second
 place interprise is stimulated by liberal profits while the government applies one of the surest and fairest IOrms of taxation and lObor is more certain of good wages
 In the stock market three favor Mole foctors were prominent despite irregular and declining values the improving military situation referred lo above; growing relief that a fair contract would be made between the government Ond the railroads, and another favorable monthly crop re- port AS to the railroad contract Q cafeIul study of the terms impreSSeS one very strongly that the roads are to be accorded fair treatment while under government control. and that they will be returned to their owners, when the leases expire. in first class condition. This years large crops together within creased freight and passenger rates will enable the ad- m1nlstratIon to treat the roads hand somely without involving any expense to the government The stumbling block between the landlords and their tenants has been. the amount that could be expended for betterments
 and improvements The provision covering this item is now so w0rded there is no longer any question of div idonds being jeopardized. Uncertain ty on this score has kept the rail- road shares in the background but with this doubt removed there is no reason now why investors should hesitate in picking up good railroad stocks which at current quotations
 Tho crop report showed a deter iOratiOn of 49000, 900 bushels in wheat, but still indicated a yield Of S91, ,O00, 900 bushels or 241.0O0,000 bushels more than last year. The wheat crop is also about equal to the next largest crop in 1914. and com pares with the Bumper yield of 1.O25,- 900, 900 bushels in 1915. Corn prom isCs a record Yield of 316O,OOO,O0O bushels which is slightly larger than last years bumper crop. The increase
 of 3 F million acres in corn leaves an ample margin for ordinary de- terioration. The country is thus promised an abundance of the three most important crops-wheat corn and cotton The most serious element l. tary situation. War is practically ab- sorbing all available funds, so that little is left for now enterprise, and only the most necessary calls arc satisfied Considerable refinancing ha been accomplished since the last loan, but time money continues scarce ] and funds high. The steady outpour of treasury notes at the rate of $750.- 000,000 every two weeks. With un- | usual crop and rade requirements in prospect at high prices, are quite l sufficient to keep the money market 1 in stringent condition. There is no 1 abatement in the confident undertone ] of the market. nor in it's excellent re sisting qualities. But the recent ad- vances in the best issues. and uncor- ] tainties as to how taxation will affect | some of the industrials induced more 1 or less selling pressure. There is also i considerable weakness in number 1 of public utilities, light and street rail- l way issues having suffered materially 1 through rapidly vanishing profits i Their only hope is that the Federal 1 government will set m example of fair l dealing with public corporations 1 which municipalities seem at present 1 indisposed to exercise. There is noth- 1 ing discOuraging in the financal out ! look as a whole and the market seems 1 likely to fluctuate between moderate 1 limits.
 HENRY CT.ENVS.