The Bridgeport times and evening farmer., 1919-07-29
HENRY CLEWS'
 WEEKLY LETTER

There are not a few difficult pro excessive optimism developed since the war closed. Much attention is centered upon the labor movement, the demands for higher wages and shorter hours, the' frequency of strikes and the outlook for the con- tinuance of this movement Capital is not unsympathetic with the desire of labor to improve its position, but appreciates the consequences of shortened production and what will happen when the upward movement is checked by eXhausting buying power Capital and labor alike are demanding higher wages to meet rising costs, and both are likely to demand still more as long as the public will pay, or until abundance takes the place of scarcity, which as a matter of fact ii the only real cure. That, of course, means work, and more work.
 Heavy Load Upon Money Market.
 The monetary outlook is also a source of deotled perplexity. While banking resources have grown enor- nously, credit has also been greatly inflated, and the demand for money Is growing fast in all directions. The amount of money in circulation July ], was s5,S41, 900, GOO compared with s5,3S5,00 900 a year ago, the circu- lation per capita now being S54.2S, as against s50.S6 at the same time last year. The total deposits of the na- tional banks, according to the last available statement, were s15, 5,9o3,- 00O, O,OOO, an increase of $1,51S, S,000,- 900 in 12 months, while loans and discounts increased in the same period $644,O0O,oOO. Taxation con- tinues to draw enormous sums from productive activity, and there are no signs of relief from this burden, the government still being the most in 1uential factor in the money market. Next come trade requirements, which owing to an extra ordinarily profitable harvest will be exceedingly heavy during the approaching autumn and winter months The larger volume of trade and the high level of values combined will put a much heavier load upon the banks than ever be- fore.
 Other Pressing Demands.
 Another financial problem of great importance is the granting of for eign credits, which are absolutely imperative for the continuance of our
 
 direction has been about exhausted, but local bankers are carefully de- vising plans for meeting this sItua- tton which will probably be shortly announced. Foreign exchange was strengthened considerably by hope that some stabilization would soon I'be established The restoration of Europe and the future of our for elgn trade must largely depend upon some such successful action, and 1t Is fortunate that the problem is to be left to private initiative rather than to government enterprise. home business, which are last, but not least. Home enterprise has been deferred for several years, and there is heavy accumulation of new ventures as demonstrated Nby the number of new capital issues. In the United States these amounted to s1.1S2, 1000, from January 1 to July l. as against s6s9, 422,o at the same time last year. In Great Brit ain the new commitments reported were about s360,O00,00O, compared with $55, 100000 in 1917, for the first six months of the calendar year. Revival of home enterprise alone will require enormous sums of money, especially fir railroads, ship buildings and structural work. The principal cities report s320,000,000 of building permits for the first five months of this year, compared with S20O, 100000 a year ago. The United States is also building about 75 per cent of the new ship tonnage under construction. Ordinarily business requirements are somewhat elastic.