The Bridgeport evening farmer., 1916-11-28
HENRY CLEWS
 WEEKLY LETTER

: Increased pressure of securities :! seems to be developing in Stock Ex- change circles. There still is a re- J markable power of absorption. But the selling seemingly is by stronger interests than the buying, and the new position does not suggest the same degree of strength and confid- ence as has so recently been current .l This reactionary trend is not alto gether surprising. It may in appre- ciable measure be regarded a natural response to news developments that I are calculated to exercise a more or less restraining influence on stock Exchange operations. For instance, the decision of the managers Of the large transportation companies of the country to contest the enforcement of the Adamson Law-the so-called Eight-Hour Railroad Labor LaW-on the ground that the measure contra veness constitutional rights, opens up an important question. Efforts are being made as a result of the CO., I operation of the government to se-l ! cure a decision on this point by the court of last resort before January l, which is the date set for the meas ure to go into practical operation. In order to expedite the decision the United States Circuit Court at Kan { sas City has ruled against the con- siitutionality of the act, admittedly Ignoring the merits of the case. This permits an appeal at once to be taken in the interest of prompt final deci- sion Until this matter finally is cleared up it is opt to continue re- straining and unsettling influence in Stock Exchange circles
 Unusually heavy foreign demands that from day to day are appearing fof new capital seem to be finally re- ! sulting in an appreciably f1rmer moneyI situation. This weeks offer ings have included $50,000,0O0 Rus sian government loan, $5,OOO,O0O loan to China and three loans of $2O,- 000,000 each to be divided equally among the three French cities, Bor- ] deaux, Marseilles and Lyons. There < are indications, too, that domestic in terests also are making provisions for 1 new capital, taking advantage of the : abundance of money and credit that 1 is so clearly following as a result of 1 the war. There seems reason to be- ! heve, however, that every effort will 1 be made on behalf of the, British
 
 i vance in money rates on our side of < the Atlantic. British interests lie i clearly against high rates. Any such ! advance under current conditions 1 would, for example, be of a discour 1 aging character in connection with the financial plans of the Entente i Powers. Advice cabled from London suggest the early announcement of a new long-terrn British war loan l which will present conversion rights 1 for. the older loans and at the same ] time will appeal on favorable terms 1 for new capital When this loan is ;: to be offered it will unquestionably 1 be deemed desirable to arrange the ! money situation in a comfortable po- 1 sition in order to assure complete 1 success for the transaction. In these ] circumstances a lowering of the Bank l of England rate and a general easing | of government rates for Exchequer bills and Treasury notes will prob l ably De suggested. Obviously it would l create a difficult problem, threaten I ing the maintenance of sterling ex- i change on our side of the Atlantic, if there should be any substantial ad- vance in money rates here at time l of pronounced reduction abroad. To
 
 necessary for the British Treasury to send us considerable amounts of gold. In fact there is excellent authority for the statement, that a renewal of the inward gold movement which was fsuspended after the recent successful Notation of. $300,0O0,00O in United Kingdom notes will be resumed at an early date.
 The closing session of the present 1 Congress is to convene on December 4. In view of the uncertainties abroad, the Mexican troubles, and other problems at home, keen inter est not unnatura11y attaches to Presi- dent Wilson's policies to be enumer- ated in his address to the legislature. Until some definite indication of their character is available, the uncer- tainty will be apt to induce a cer- tain amount of further restraint in < Stock Exchange operations.
 i There is no perceptible sign thus far of any check to the >country's busi- ness activies. Everything is still run- ming full speed ahead. The U. s. Steel Corporation has this week an- nounced another advance of 10 per cent. in wages, making the third ad- vance of this amount within a year. Other iron and steel manufacturers are following the lead of the larger company and advances are numerous in other industries. Mills throughout i the country are making phenomenal profits, but it is obvious that when the war ends, as it must sooner or later, general readjustment must ensue. It then will be necessary for labor to assume it's proper share of the reaction, which, however, is a position that it is difficult to believe the leaders will willingly take.
 The outlook for the market for se- curities appears to favor active in and out trading operations accom- panied by rapid fluctuations.
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