The Bridgeport times and evening farmer., 1919-05-19

a bad way. which is really not the fault of the railroads themselves or the lack of freight business Before the war the drift was seen and when the stress of mobilization was added their breakdown was to be expected. The war has only, made their position worse through a heavy increase of expenses, which raised operating costs to the ruinous ratio of almost 93 per cent In the year before the war. under private management, gross earnings were 100000 and net $214,0e0, 900: while this year, under government management, the net was only $93,600.o00, though gross mounted to $1,10s,oo0.0oO. Govern ment regulation has proved unsuc- cessfu1 financially; while railroad efd- ciency fell to the lowest standards in many years. notwithstanding largely increased rates Added to this is the physical deterioration of the roads, aggravated by war, which will call for heavy outlays in repairs. Congress may take early action in restoring the roads to their owners. which accord ing to promise the government must do in as good condition as when taken
 over. The railroads will in due sea son be put on their feet and their general status strengthened. The les son has a close bearing upon the ef-
 forts to bring other public utilities, such as wire service, trolleys, lighting companies, etc, under public owner
 ship. It has been proved very effectu-
 ally that private enterprise, with all it's faults, gives better and cheaper service than the government. which
 almost invariable ,compels the tax
 payer to pay the losses.
 Taxation and the Money Market
 The problem of taxation will again
 be forced upon Congress. Govern
 ment expenses and losses from war. are proving far more than expected.
 The Treasury Is threatened with out
 lays almost if not quite as heavy as
 for the year just closing. The Vic
 tory Loan is practically spent, and as no more loans are to be issued, the Treasury can only meet it's forthcom-
 ing obligations by persistent short term borrowing and heavy taxation. There is no prospect of alleviat;on iz the latter, unless the government en- forces drastic, economies, of which it shows no evidence. Private economy is equally necessary. but of that, too. there are few signs For months to come. therefore, the government will remain as 1t has been, the dominant factor in the money market Its de- mands will have to be met. in the
 future as in the past, by banking in- stitutionA whose resources are al- ready overtaxed in this respect Other nations are coming here to be financ- ed At the same time provision has | to be made for our foreign trade. which is sure to expand So, too, will our domestic trade; and added to this | is the imperative launching of many new enterprises and Improvements long deferred by war. It must be re- membered also that high prices, or depreciation of the dollar. diminish
 the Ioaning capacity of the banks.
 All ir, all, our financial institutions are
 carrying heavy load of credit, which.
 thanks to the Federal Reserve Sys-
 tenn. they are thoroughly able to do.
 But our banking resources are heav- | dly burdened. their limitations must be kept in mind in all financial opera
 tiona High interest rates are to be expected until defiation begins and | commodities decline.
 Stock Market Outlook.
 Million share days have followed each other consecutively for about a month, and on Wednesday the total transactions reached 1900, 900 shares, the highest since 1917. At periods market experienced more or less | oft taking. induced largely by stif- fe.linlk of money rates. Copper aharee showed temporAry str6nexh, oW1ng to 1 fho nnVnnco fp stlver. efeeIs f66ov 11= oa fn1r1< 6s1nG etimulnt6d b, 6&I|
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