The Bridgeport evening farmer., 1917-11-07
WATSON'S WEEKLY
 MARKET LETTER

The readjustment of security prices to an American war basis continues. Quoted values are at Tow levels which
 in many cases offer unusual bargains
 to those who can buy and hold. Spec
 ulatively, they may decline further. But authorities agree that prices are below values in standard issues. That
 this is recognized by shrewd investors is apparent. Buying has been quietly going on for their account during the
 lqu5Sation. When the turn in the tAde will come. no man can tell. New
 selling wealoens speculative-invest-
 ment positions which had been deemed
 secure-and the market naturally suf- fers.
 Influential above other immediate factors operating for a renewal of unsettlement among active investors
 has been the German drive into Italy
 with it's suggestion of unfavorable possibilities. Unexpected Canadian
 liquidation followed, due in part to
 the Italian crisis, but also helped by
 the necessity--of providing for Cam ada 'sswnr Ioana The, labor scarcity,
 with its ba1eful influence bringing up another demand for higher wages from the Brotherhood of Railway
 LLatnIiCiis ID DCCOl1AiAS dIl0 AhOAO
 acute. The brilliant success, of the
 Liberty Loan was overwhelmed by these features combined with Social
 istic tendencies in the New York city elections held yesterday, and the es- inmates of financial sharps showing how heavily war taxes are absorbing not revenues of corporations. a con- spfcuous example being the quarterly earnings statement of U. s. Steel pub
 Mshed during the week.
 It. is like hoping against hope to-
 expect the Interstate Commerce Com
 mission to give, the railroads relief; but there are indications that some action will be taken to provide addi- tional revenues that will at least partly overcome the steady decline in
 net now reported by standard sys- tems like the Pennsylvania and New York Central Unquestionably, sub
 stantia1 relief for the railroads would
 go far toward restoring fconfdence in investment circles-for the carriers represent and reflect the foundation of general business prosperity in this country. Cannot the administration see that prompt and liberal action at
 this time by the Interstate Commerce Commission would aid the railroads to
 tide over the trying financial and physical condldtion in which they are placed and would also. help to re- store confidence in the railroad se- curities, and would be splendid base upon which to build a foundation for further subscriptions for the future IAberty Bonds that the government will be obliged to issue?
 While pessimism has <, reigned throughout the investment commu- t~-EL IA -I-l to ignore features of @ favorable na- ture, it becomes our huty to call at- tention. to basic factors which may soon be made active by the law of ac- ton and reaction. against forces of bearishness. One of these is the fact that the United States crops will be worth more this year than at any previous. period in the history of the country-as well as being larger in the aggregate. Furthermore, millions of money are being spent every month among the nations industries, which must of necessity be thereby stimu- lated to capacity activity Tor a long time to come. The entrance into the Federal Reserve Banking Ssytem of
 large number of great State banks
 and trust companies is certain to
 concentrate American banking power
 so that 1t will be strong ans ready to meet all war demands without finch ing With American resources, esti-
 mated by President Vanderlip of the
 National City Bank of New York, at s250, 900 00o, 900, backing up the Allies;
 with Americas manpower-to the ex- tent of 10, 900 men if needed-in re- serve for Entente military support, with these mighty factors against Germany, can there be amy doubt as .tor the result2s -s..-sk
 It sass hard in times of stress to peer into the future beyond the clouds of pessimism and see the outcome clearly, hut we feel certain that the pail
 which has been hanging over the
 speculative-investme world will be |. lifted in the most distant future, and that the courageous man who has
 employed his resources conservatively will have his sure reward when the
 better days come-as they surely will. And that the market for securities is
 now closely approaching a more sta- { b1e position cannot be doubted. That
 it will exercise it's fundamental func-
 ton of discount anIdl> begin to look
 ahead toward peace. with American
 svar-power aggressively employed,
 annot be questioned. We, therefore,
 zee mo good reason for sacrificing
 sound securities at these levels.
 Rather would we counsel additions to such holdings where resources are [ ready and ample