The Bridgeport times and evening farmer., 1920-04-13
HENRY CLEWS'
 WEEKLY LETTER

Conditions in Europe during the past week have continued to show depressing indications. The failure of Germany to deal successfully with her own internal disturbances and the effort of the French to take control Of the situation in the Rhine region had been predicted by competent ob- servers for some weeks past, but com paradvely few had believed that the state of things would develop quite so unfayorably as has actually been the case, AS dispatches from Lon don and Berlin have, however, shown, the political side of the situation on the Continent does not materially af- feet the economic or financial outlook largely because that was already about as bad as it could be-
 Relations with the Central Empires have not improved materially and can not be expected to do so until some plan is devised for the estab- lishment of a better economic basis throughout those countries which will permit continuous production and an eventual restoration of export power
 Meantime the progress in Congress with the plan to declare peace by resolution has been. slow, and the measure itself, although better than
 
 provide the remedies for existing diff faculties which would be furnished if there were a complete treaty agree ment on all open issues.
 State of Public Finance
 Broad questions of public concern have not been limited during the past month to international issues, but problems of finance have assumed an unusual significance in the do- meStic field. Conspicuous among the developments has been the announce ment that Congress is quite definitely planning the introduction of the bonus system in favor of honorabIy discharged service men, that it will provide the means for this distribu tion by imposing a tax upon sales which is calculated to produce a suf- fcient amount to cover the entire disbursement The estimated cost ot the bonus plan is now set at from S1,50o, 100000 up to $5,000, 100000 while estimates of the yield of the tax vary all the way LID to S10 coo, coo OOO That such a tax will have the effect of increasing the cost of living no one doubts or can doubt It is sympto. matic of the changed conditions O, the times that so little attention ha. been attracted by a plan involving I1iS i1IlpOSEI1O11 O1 ldA0S IIfS1Dy UQet greater, in all probability, than thu entire cost of supporting the Fed era1 Government before the war. Thi makes a serious outlook, too, for tn, possibility of reforming other taxa ton, it being semi i-authoritatively re ported that Congressional leader have about resolved not to attemp to do anything toward making a gen era1 revision of income and exces profits taxes at this session of Con gress
 Banking and Credit Outlook
 Improves.
 While the situation of nationa' and, it should be added, of Stat finance is thus not very satisfactor there has been an unmistakable i'm provement in the banking and credi . outlook during the past week o more A better ratio of reserves t } liabilities in the Federal reserve sys |, tenn was reported at the opening c 3 the week, and even though the favor l able change in percentages wa 4 small, analysis of the statemer 5 showed that there had been a decreas in war paper and that an advanc a in bona fide conan merciaI accommoda 5 ton, which seemed to have placed , greater strain upon the Federal re . serve system, had been due to Iegit mate spring demands. Liquidation undoubtedly proceeding in those line of paper to which objection has bee s expressed by the banking authoritie and the outlook is corresponding Il more encouraging. Meanwhile the re ceipt during the week of two furthe s f.-taIlments of gold, each amountin j0G 600 in round number 5 brought the total importations 0 tl.is movement up to $40, ,00 with at least S1o,oo0,0O0 more i sight for early importation. The prt diction that the total amount to I received will amount to $109, 900, co or $15O,ooo.oo0 seems in a fair wa to be verified. All this transferenc