The Bridgeport times and evening farmer., 1919-02-03
HENRY CLEWS'
 WEEKLY LETTER

At the moment there is an unusual variety of disturbing conditions in the business world. These include the ap- pearance of differences in the Paris Peace Conference, which, though not important, may tend to make an early settlement difficult; the general con- fusion aroused by conflicting policies regarding the home railroad situation; an unsettled business situation due to readjustment to peace basis, and threatening labor complications re- sulting from the high cost of living and the increase of unemployed. It Is many years since business men faced such a. conglomerate mass of uncertainties; and the fact that confi- dence is so well maintained against such adverse circumstances is quite remarkable. It may be impossible to reach any definte conclusions as to what will happen during the next few months; but there are at least a few reassuring facts which justify this suibstrata of confidence; for there is plenty of work in sight, plenty of new enterprises waiting to be launched, plenty of capital ready for
 
 for employment. The main obstacle to free operation of these forces is ma1adjustment. The worlds machin- cry has been gravely disrupted or tbroken, and its reconstruction in wolves widespread confusion and loss. Government control was a necessary evil as long as the war continued and it's undoing proves a. vastly more diffl- cult task than Its construction. It should be remembered that it took over IS months to mobilize our indus try upon a war basis; while scarcely three months have been spent in an almost complete demobiliEation. This
 Is astonishingly rapid work; too rapid : perhaps for comfort; and excessive friction in such 6 hurried movement
 is inevitable.
 One of the most serious obstacles to Ireadjustment is the deflation of val
 ues- The ideal plan would be for an
 orderly, equal and simultaneous lshrinkage for commodities and wages, but that is impossible. Revival in in dustry, now that war contracts are
 ended, cannot be expected until raw materials and wages have reached more normal relations Wages will , inevitably resist contraction unless the cost of living falls corresponding . ly; and it Is a question large}.- where the adjustment process shall first be- gin. There has already been a con siderable fall in many commodities 5 but food remains high, and the work ) ingman finds himself unable to make any sacrifices except in purely war ) wages which automatically dropped after the armistice. The only way , out of present difficulties is working them out; a. process that will require much patience and endurance in over coming postwar confusion. It must
 be expected that those who usually
 take the initiative will show much
 conservatism; and yet underlying con dttions are so sound and encouraging l as to warrtnt a hopeful spirit for the future, despite an unsettled present. The United States has emerged iron l the war relatively stronger than any other nation. We occupy a far more s powerful position than ever in oul ] history; and we have enviable capac- y ity for furnishing the things whicf 8 other countries sorely need. Oul
 credit Is sound; our banking system
 strong; our foreign trade enormous
 our granaries well stocked, and oul f mills well equipped. When presen- 6 friction has worn itself out and tht readjustment is reasonably complete - there Is no doubt the country vii , take a big forward leap, and pros perfty should become more abundan !. and more wisely distributed among al concerned.
 A depressing factor of temporar, 3 influence was the reduction of U. g - SteePs dividend from a 13 per cent t, g a per cent. rate, the result of con t tinued shrinkage in business since tn l. close of the war. The net earning
 of the company for the quarter end z ing December 31 were S36, ,354, 900, com = pared with $42, 961, 600 for the previou
 quarter, after allowing for taxes. I :. IS possible that the shrinkage of bus A mess may continue for some time t
 come, and the question of taxation