The Bridgeport evening farmer., 1916-10-02
(Clews' Weekly Letter.)

substantial profit-taking by large ln- terests in the financial markets thls week, new investment and specula- tive buying has been sufficiently eI- fective to more than maintain the Stock Exchange price level. On Sat urday last the sales during the short session exceeded the 1000, ,00O-share mark. Mondays full days session contributed a total of 2,So0,OOO shares. To duplicate such figures we must go back to the exciting times Of lSo'. They are suggestive of the enthusiasm and public interest than at present are prevailing.
 The main features in the general financial situation may be consideIed to include, O) the impression that mas become so widespread that European liouidation of American securities mas approached close to the point or com pletion: @ that the termination or the war of Europe, devoutly as it IS to pc desired, does not promise to be one or the immediate probabilities; (o eie unmistakable evidence of lnnatlon III which all our national activities are so freely participating; (D the phenom- enal earnings that are appearing III the official statements of our great railway systems and equally great 1n- dustria1 combinations; and C) the re- markable ease in the money sltuatlon and the fact that the financial require ments for marketing the crops nave been completed for the season.
 As to the continuation of the selling by foreign 'holders, an interesting statement compiled under the direc- tion of President Loree of the Dela- Gn lished early in the week, is not antag- onistic to this conclusion. MT. Loree shows that there were still held abroad on July 31. 1916, American rall- road securities of par value Of Sl,- 4l5, ,62S, 5S2, but having market value of only $1,i10, ,0s9, 900. One year previ- ous-on July 31, 1915-the par value of the securities held abroad was $2,223,- 510,229, showing a reduction of sub stantiafly, $500 ,0OO,000, while comparing with a similar statement on January i. 1915, the reduction is close to $l,2OO,- O00. .O00., When we consider the large volume of securities returned to us during. the Balkan wars, as well as the fact that MT. Loree's compilation refers only to railroad securities and does not include industrials, it is pos sible to appreciate in somethlng HKe definite measures the tremendous pow CT of absorption that has been dis played by American, investors during the last few years. As, to the $1,1OO,- O00 900 market value of railroad stocks and bonds yet in foreign hands. there Is apt to be some misapprehens1on as to the volume available for further sales. In the first place Holland ana other neutral countries are partlclpat- ing on a scale quite in keeping with conditions at home in prosperity ana imitation as a direct result of the op- .portunfties furnished by the war. iDutch holdings are not likely to be re- 'duced. and unless the New York Stock EEK xchange price level becomes irres1st- Bblv attractive the holdings of Amer1- ran securities in other neutral coun- tries, will not improbably be fully .Snaintained, if indeed not substantially increased, in the near future, since It woupd be difficult for capitalists in those countries to find more attractive investments than American railroad securities. In addition we must not forget the very large volume or mo biIized American securities controlled by the British Treasury under the de- posit or loan part of its mobilization scheme. It will be recalled that $lOo,- 900 0c0 of such securities were depos- ited as part of the $300, 100000 collateral for the $25O, 100000 British loan so re- gently arranged with American bank CTS at this center. Future loans or similar character are understood to De in contemplation, to be arranged when needed. It is not unreasonable to as- ume that the collateral must be quite
 1n fvor cpN to come. The British chancellor must be prepared to continue to include a substantial part of American securi- ties as the security for ensuing loans. Meanwhile, as the British Treasury has merely borrowed, not purchased, the securities in question, there IS slight probability of their sale. 1n- stead they are to be tied up until after the conclusion of the war, when they will be returned to their present own CTS.
 If it may not be accepted as conclu- sive that foreign selling is culmfnat- ing, an important point in railroad finance has been reached. Our great transportation lines are severely in need of new capital for improvements. for extensions and adequate equipment In order to place themselves in proper position to conduct their business as common carriers. There has been no serious attempt by them to appeal to the capital market during the period of European liquidation. Any action of this kind would obviously have been unwise since 1t would have meant competition with the cream of railroad investments, such as were so distinctly the feature of foreign holdings As matters now stand, however, if this is ending, railroad managers will find inducement to take advantage of the phenomenally favorable revenue state
 ments that are being presented iii the annual as well as the monthly traffic xnd financial statements. Recent an- sssnal reports have shown, for instance, such magnificent results as about Il per cent. earned on the common stock of the Southern Pacific, the Atchison and the Reading roads. These figures may be accepted as representative of the railroad business of the country
 The probability of the continuance of the war into 1917 removes as an im- mediate factor of the general market the after-war condidtions which many thoughtful persons are awaiting with apprehension. A contract for nearly 800, ,000, ,000 pounds of copper, which has recently been arranged with American producers for delivery abroad during the first six months of 1917 does not tend to encourage the view that an early peace is being expected in official circles abroad. It, too. seems fair to
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