New Britain herald., 1919-04-19
Henry CleH' $ Weekly Letfer
Especial to Herald.l

NeW 4ork, April 19,-Annou ment of terms of the new victory loan gave decided encouragement u the financial community. The AioS' important feature was that the loeaii would be only $4,500.O0o,ooo' Ao' $6,000, 100000 or $7.00O, ,O00,0Vo aS once feared. There IS every fC9C@oii to believe that the loan will be q brilliant success. It's relatively short period, 1-2 years, is much III it's favor as it will give the poh"' increased stability. Another attrttC- tive feature is the higher rate ol nI- terest, 3-4 per ceni' so tlla ". the conversion privilege and the par tio1 nvomntion from taxation added, +hasa bond constitute prime invest r,ont inc safest and best in the world On it's merits alone the issue sbouId be promptly taken, and there is no doubt that the loan committee in charge of the drive will profit by mast experience and make it a, grand achievement.
 Business mon should particularly support the loan, for they are in 1 better position than ordinary lnVes- tors to appreciate the necessity ol relieving the banks from the burden of carrying this loan. The banks per formed splendid service in the last loans without com mpensation. They have carried the government during the interval between bond issues by taking on vast amounts of Treasury notes, which have been dealt in Ill sums sufficient to anticipate the pres ent loan It is advisable for buS1ness men to help relieve the banks of thls huge burden in order that these ln- stitutions may perform their legltl- mate function in fostering industry and commerce. Business has been materially restricted during the war by governme absorption of banking resources, and in proportion to pub lie subscriptions to these bonds bus mess will become more active through the release of funds for legl- innate borrowing.
 For some time past our big lending institutions, particularly those lending on real estate, have kept out Of the money market There is reason for stating that these restrictions will soon be withdrawn and 8 better mar itet established for real estate mort gages. The supply of housing room, especially in New York, is much be- low demand, and a decided revival in apartment and office building is al- ready within sight. The more com Portable position of the money mar ket as a result of lessened government pressure will also affect other indus tries favorably. Many new enterprises and improvements have been pigeon hoied for months owing to the war, and these will now be released. The thief hindrance to their launching Is the maladjustment of capital and labor, which can only be rectifed by mutual cooperation. To that end a better understanding on both sides is necessary. Wages are high, but em- pToyers do not wish to reduce them so tong as the cost of living continues at t11e present level. They do, however, ask for a fair days work for 8 full days pay, without which prosperity Is impossible. Today the whole world is suffering from economic famine ere Rted by war. There is no cure for that famine except increased produc- lion and there is no means of secur- ing increased production and prosper ity except through hard work by both capital and labor. To capital and la bor alike the road for return from war profits and war wages to normal conditions has been exceedingly rough and demoralizing: inflicting a degree of economic damage that will require considerable time and patience for recovery.
 Tn spite of such drawbacks there is, a confident undertone in financial circles. Agricultural prosperity this year will be unexamnled, since in any event food is bringing high prices, and in the case of wheat our govern ment has fixed the price at S2.2G, which means subsidy or extra profit to the grower of about a billion dol lars. Clothing Is also high, and OUT cotton and wooden mills are antici- pating q heavy demand: the conces- sions in prices at first hands 9 few weeks ago having stabilized the mark ct and stimulated demand. Building materials are already hardening in anticipation of 8 real estate reyiysl. Copper and some of the principal metals are naturally suffering from lower prices, resulting from stoppag of war orders and an enormous left over supply. This depression how ever, will De but temporary. For pc troleum products there is an enor- nous consumption in prospect. with corresponding prosperity.
 Our foreign trade is gradually re- turning to normal, and while our com merce with war devastated raSIcns will require time for restoration ther, is no reason why a larger traffic should not quickly ensue with Soutl- America and the Orient, where new opportunities await the adventurous trader. Great Britain is already :rlail- ing tremendous efforts to re-esta blisl7 her foreign trade. The United States thanks to the war, has suddenly be- come a great maritime power. aAC will soon closely approxima1o Brit
 aims vast tonnage. There is still ; great scarcity of ships. and it will bf one if not two years before the Eoit is filled. Meanwhile, American ship owners are making handsome profits which explains the increasing activit! and rising prices of marine issues ol