The Bridgeport evening farmer., 1916-10-16
.CLEW'S WEEKLY { MARKET LETTER

The course of the stock market has been influenced almost entirely by peace rumors and war incidents. The first caused weakness on the theory that peace will compel a slowing down of important industries, owing to the necessary cessation of intuition orders and the demobilization of trade from a war to a peace basis. Peace, it is argued, will reverse forces which have been pushing prices to a very high level, and values must consequently recede. The second cause of weak ness was the outbreak of submarine ' activities near the coast, of the United States, which revived apprehension of difficulties between this country and the Central or the Allied Powers. These two unfavorable developments struck :, upon a market technically weakened by prolonger rise and loaded to the breaking point with big profits Extensive realizing was inev- itakle, the result being a weakened an unsettled market. Fortunately, th& &home situation has changed but ali i{htly, if at all. Industry is active. prizes are rising, and the strictly home uflook is certainly good. But the foreign situation, still the prime fac tor, is full of threatening possibili- ties; besides which we are now in the midst of Presidential campaign which is likely to daily grow more tense and irritating. Under such cir cumstances the obstacles to a further rise at this time were insuperable; and the financial situatioF, investment | as well as speculative, has been clear cd and strengthened by reaction. which might possibly be, carried still further without serious injury. On the other hand, the speculative spirit has been thoroughly aroused, many operators with newly gained wealth and big resources are in the market ready to take advantage of every shift in the fipancial current. A strong un- dertone of confidence exists in the financial district; and any favorable development will be quickly reflected in security values. As yet no symp- toms of lesseIfed activity are in sight f Commodity prices are still rising; the general level being fully 25 a 30 per cent. higher than, before the war. Cotton, copper, steel, oil, rubber, ysu-a Kaff wheat, meats and all food pro- ducts are advancing, stimulating, gen. ', eral unrest by adding to the already high cost of living. Since the war, wheat and flour have nearly doubled, meats have, risen 20 to 30 per cent. and. over. The British government, after taking over control of several commodities, is now regulating wheat supplies and prices. Textiles show substantial rise since thew ar Cotton goods are 25 to 100 per cent. higher, linens have doubled, woolens are 50 to TO per cent. above 1914 and carpets have risen SO to 100 per cent! Thus I far these advances have been more I conspicuous in the wholesale markets than among retailers. Eventually, however, they will reach the latter class and the general consumer. who will also have to pay for the increased costs of distribution arising from the tscarcity and high wages of labor. This upward movement is worldwide and not by any means confined to the \ United States. The causes are numer- ous and somewhat complex, and yet inearly all of them find dItheir primary origin in the war. First and most serious. is the shifting of millions upon millions of men from productive occupations to those of destruction. s Hence the scarcity of labor and the incalculable wastage of life, property and commodities. Nothing can pre- < vent even higher prices while the ter rible scourge of war continues. Pro- duction is decreasing, while consump- , ton and waste are constantly increas- ing. Governments may endeavor to restrain speculation with all possible energy; they may seek to prevent the interruptions from taking undue ad- vantage; they may secure better dis tribution and somewhat mitigate the hardsips of abnormal conditions; but no government is powerful enough to :. throttle the inevitable law of supply and demand which, owing to scarcity, now operates irresistibly in the di- rection' of higher prices. High prices are the natural correction of such conditions and the only sure way of stimulating production. Economy, efficiency and stoppage of waste are equally necessary to offset the high cost oH living. Even in the commercial I world the ill-effects of the war are painfully illustrated, and many lessons can be learned; chief of which are the fnvfolability of economic law and the penalties which the whole world must suffer for the struggle now devastat- ing <,e Continent of Europe.
 Railroad prosperity continues un- checked: Reports for 23 important lines for the fiscal year ended June 30 show earnings of nearly 12 per cent, compared with over 2 per cent. year ago. These results were attrfbut- able to the good crops and high prices of last year; also to the industrial ac- tfv1ty brought about by the war. Rail- road managers anticipate a continu- ance of favorable conditions for long period to come. The steel industry continues at high-water. mark, and the monthly statement of the Steel Corporation showing thrilled orders on Sept. 30 of 9,a00,oO0 tons is satis- factory. Our banking situation Is very strong, the comptroller having announced that the resources of the national banks of the country are the largest in history, The countrys gold supplies have been enormously in- creased by importation, and the com bined holdings of the reserve banks are now placed at s592, ,OOO, 900. These facts immensely strengthened the credit situation, feature which of course has an important bearing upon the maintenance of trade activity.