The Bridgeport times and evening farmer., 1919-01-06
CLEWS'
 WEEKLY LETTER

1 The new year is making a, fair start, considering the many besetting un- Icertainties which it presents. Read
 justment is the one word which de-
 scribes both present and future. In 8 business sense the first factor in
 readjustment Is def1ation. Prices and credit were unduly inflated as Q re- suit of war. and now that peace has come the current has turned and is running in the opposite direction. In commodities reaction has already commenced, and not a few staple
 commodities are unmistakably on the downward path. Now that the gov
 ernment has released it's control of
 the markets natural influences are al ready exercising their sway. The
 movement is not orderly because the
 sudden withdrawal of government
 control left many of the markets in
 8 confused condition. They had lit
 erally been put to sleep by regula-
 tion. and are somewhat slow aibOus waking up to their restored freedom. 1 It is a surprise to many that in spite of war, peace finds a number of tour markets well supplied, though
 scarcity was anticipated in many quarters The government holds vast
 stocks Of many articles which 1t will have to dispose of, though the au thoritie3 announce that this will be !, done gradually and without any
 'dumpi1g.' In nearly all essential
 raw materials there is plenty for inn ; mediate needs. No scarcity of food is in sight. There is a larger number Of
 cattle in the country than a year ago.
 Grain is fairly plentiful. and winter
 wheat promises a huge crop. There
 is plenty of cotton, plenty of leather. ] plenty Of oil. plenty Of steel, and so
 on. No anxiety need be felt on this score. More concern may be felt re- 1 garding the large supplies of various
 commodities in storage at high prices. ) Bankers look at this factor with more I Tor less caution; and the desirability of at least partially deaating credit : promises to lead to more or less li-
 qutdation. In brief, the tendency e
 commodities may be downward fo1 ' some time to come, and during the Y next three months it is quite reason able to expect g. shTinkage in boIh 1 commodities and credit While this v lnay temporarily restrain trade and
 induce some hesitancy, it will event
 ually stimulate buying and aid ill the a revival of enterprise, postponed be
 icause of high prices. About the only l scarcity to be noted is in labor The a return of soldiers from the front af-
 lords partial relief in the labor situa- 5 ton, but jobs are plenty and wages ; are likely to be maintained for the ' present in view of the high cost Ot 70 living
 7 In some sections of the country 2 !, high degree of prosperity is assured Il for a considerable period ahead Tn.
 wheat growers especially have won derful future. Our governmert has q generously agreed to pay $226 pe1
 buSheI at Chicago for the next two , crops. This is highly profitable l. price, and farmers may be depended n upon to grow every possible busheI
 The bargain I fear yiIl prove q Iosing Y one The farmer, however, will roI - in prosperity, stimulating business il
 his section, The cotton planter i.
 also getting big prices for his product .- and will enlarge the product to mee the revival of foreign demand A $ nearly all agricultural products arr :, enjoying Q high margin Of profit, tb farming classes generally will b l. prosperous. The same applies 10 in II dustrial csnters, where wages ar -- high and business active. Enterpris )f should sh0w some revival whel
 spring arrives and construction is re
 lnewed.
 - A variety of conditions was resnon
 sfble for tEe weakness in securitie
 during the fast few weeks. Chief c Ays these was the unsettlement induce "A by shifting from war to a peac
 basis, ReaGtustmsnt was often diff aa cult and costly, In some cases heav sl- losses Were incurred, and the fac is that they had been anticipated di on not entirely counAerast their effec rs upon business sentiment. Many ne7 is problems ars causing hesitaney, es ue peoiaiiy those depending upon tn ed. outcome of both Federal and Stat ne legislation. The new revenue bill a I'by no neanJ in final form, and thef e. IS the possibility that it will be S
 long delayec in conference co1nnnitte ms that 1t maiE not be passed this SC. for sion; in whteh case a new bill woul ,es ID drafted for the next session. Sue he runors may not prove true, but the he induce hesitation, Not 8 few indu ,a- trials have eeen weakened by prese, to- drastic tax proposals, which wi ed make heavy 1nfeads upon exec ser profits and result in lower dividend
 War profits and war wages are gon
 lFaailroads shared in the decline, late
 returns of earnings being of a vel
 unsatisfactory character and inddca nG ing heavy drain upon the goverl
 ment unless conditions improve. The
 IS reason te hope that they wi or Traffic conditions are much bett srd than year ago, when the entire sy enc tenn was badly crippled by freig will congestion and extreme cold. Eco to- omies are also being introduced tn ned should aid net results. The same ich ------------