The Bridgeport evening farmer., 1916-11-07
HENRY CLEWS
 WEEKLY LETTER

It was not at all surprising in view of the numerous cross-currents that curities should have displayed a de- gree of irregularity this week. In the first place is the important considera- tion that the national political cam paign has about reached, it's point or culmination; then there has been CD the sinking of another transatlantic steamer with Americans on board un- der conditions suggesting at one time the possibility of @ renewal of the SUD p- marine controversy between Washing ton and Berlin ;(3) the successful of- fering of another large loan on behalf of the British government in this country; (4) the announcement or a second extra dividend of per cent. by the directors of the United States Steel Corporation and the publication of. another favorable report of quar- lterly earnings; (5) the additional inn .epdrtation of gold on a large scale, and 'i(6) the continuance of the remarkable factivity in industry and trade that has C-forfor so long a period been such an et-outstanding and favoring feature. 'tThese are the more important news .1events of the week.
 :f In the face of the irregularity that is so usually associated with the clos ing days of a national political. cam paign af remarkable investment ability that is not confined to any section but is nationwide has been demonstrated by the absorption of the $3OO,O00, 900 British government secured notes that were formally offered on Monday. So satisfactory were the subscriptions that the bankers decided to close the subscription books this morning, 1n- stead of keeping them open until Tuesday next, as was the original plan. A similar indication of the extent of the investment demand has been the activity that had been displayed on the bond market The sales of bonds on the Exchange during the month of October, for instance had an ggre- gate par value of 900. which compares with s1o4, 4,122,5O0 in Octo- Der last year and only $40,S37, 500 in October, 1913 (the Exchange was closed for business during October, 1914).
 < The quarterly statement of earnings by the United States Steel Corpora ton fell somewhat below exaggerated ideas that had previously been cur rent. The total of $85,817,067, how evr, established a new high lever, having exceeded the June quarter, heretofore the high period, by more than $4,O00,00O, and leaving net surplus after allowing for the amount necessary for the extra dividend, of $51,S59,450. These figures without question may be accepted as res sponeib1e and accurate index of the in dustrial activity that our country is enjoying During the June quarter deliveries were at virtually the full capacity of the mills. Hence spectac- u1ar increases in earnings, such as many seemed to expect, must have represented in large measure the ef- feet of higher prices paid by consum- fers, rather than an expansion in the volume of products delivered. So long as the wars demands continue there is not likely to be any important re- strfction. of the steel trade. When hos ti1ities end readjustments are inevita- :. b1e: but, as I already have noted, there is slight tendency at the mo- : 1nent among operators to look far into the future. :,
 1t is fortunate that caution is being : displayed in banking and other con- seryatfve circles. Otherwise. with the ease that is so clearly evident in the credit situation, there would be diff1- cu1ty in preventing: the danger of a runaway market. Thoughtful persons know that with the intense activity in trade and industry, with the high wages and the consequent enormous spending power of labor, and with the large profits of manufacturers, all ,taese are merely the results of tenn iporary conditions that sooner or later must assume more nearly normal position. The commodity markets as well as securities are still moving up- ward. So long as the war lasts there seems slight probability of a lasting reaction. as the foreign demand, re- gaxd1ess of cost. is so insfstent. It is difficult to see the end of this hfncreas- I3ngfy diaieult situation that so freely affects conditions at home.
 7: New enterprise is active, the wars demands still being strong stimulant in this direction. During October new ic0xnDahies to produce munitions. man. ,t1faet1fe dyes and chemicals, operate shipping companies and develop oil and gas resources were formed with aa Aggregate capital of SIS, 900, bringing the total of capitalization for these and similar companies to a to- tai of close to $900,O0,0 900 during the war period. Railroad earnings still are highly satisfactory. Comparisons, however, now are being made with a period of activity. Hence the same spectacular increases (sueh as have been the rule when comparison was made with the lean year of 1s14) are not to be expected.
 The market for securities may be expe eeted to witness aetive fluctuations, with a general trend governed by the tendency toward credit imitation. Large interests will pursue the usual course of periodically taking profits. There will, too, remain the usual; danger of shocks that have been a constant fea- ture during the war.
 ---------------- s,s:
 About now the householder applies the principle of the conservation of energy by letting the wind blow the dead leaves over en his neighbor' S lawn instead of raking them up him. self