The Bridgeport evening farmer., 1917-08-14
WATSON'S WEEKLY
 MARKET LETTER

Bearish clements in the market TOT securities have been going to the ex- treme in rumor- -mongering. from which it may be inferred that raids, to be effective, must be accompanied by "news fakes Reports that, the government at Washington IS pre- paring to fix prices for commodities like steel at a level below costs IS practically equivalent to saying that the United States Is going to wage war without money. However fool ish some of the things our national legislators do, may appear, we reject the idea that they contemplate na- tfonal suicide Western sentiment IS optimistic on business. VT am con vinced that this country is entering period of great prosperity, probably one of the greatest ever experienced, says Vice President Reynolds Of the Chicago Continental q, Commercial National bank. MT. Charles II. Boyn- ton, member of the New York Srock Exchange firm of C.. H. Boynton S O., has just returned from Hussla, and shares the optimistic views or Hon. Elihu Root with regard to the restoration of Russia as a formidable ally of the Entente and enemy or Germany-something which, IT real ized. will take materially from the war burdens of the United States in. the great conflict.
 Unsettling rumors have been max ing for irregular fluctuations in the in3rstrial list during the week, espec. iallxs in the steel group, where the speculative long account became little unwieldly, according to market observers, who pointed out that the technical strength had been impair ed to some extent in the metal dl- vision because of the recovery when had taken place at the expense or large short interest While price fixing Is not likely under any circum- stances to be satisfactory owing 10 restrictions necessary, we do not pe- ,ieve the dire conclusions reached in bearish tnmor will be realized. We trust to American common sense leading to Washington-New York < cornpromises in the bases for fixing of prices; and as Napoleon once said: .sIf you get your principles right all will be well.'' As a whole, the Street is better satisfied with the tax revis- ions now proposed. We fell conh- dent that Equipment, Sugar, Leather and Steel issues of real worth VII offer good buying ppEtunities dur ing Eaarket-h -heaxiness due to prores- sional raiding-
 Ass,,rar,ace is given by the govern rnent crop report published during the week that the harvests of the United States this year will be materially larger than last This outlook is sup ported by the fact that weather con- ditions have improved further since the report was compiled. A bumper corn crop may be reported. This out look cannot be otherwise than highly eatisfactory, for 1t means a strong foundation for business. A great deal of qualification is shown over the plans. to make next years harvests larger than at any time in the his tory of the nation. Early prepara- tons should make such a result prac- tically certain unless a weather ca lauity appears. The cost of living would be reduced and the basis pro- vfded for a solid expansion of busi- ness war or peace. The outlook is therefore better for the granger shares, and we feel confident that in vestors who buy Great Northern Northern Pacific, St. Paul and Ttchl' son upon declines in market prices win be we'll rewarded by patient hold ing. It is not to be overlooked tna' with any reduction in the prices O basic commodities the expenses of thu transportation systems will displa! tendency to decrease. This shoult have a very beneficial effect on stock of the Southern and Southwestern lines, whose earnings have beel making phenomenal gains owing u prosperity and steady increase II business development, which make for profitable traffic. Peace or war the railroads as class are now il the strongest position of any securi ties on the New York Stock Ex change, say. prominent interest "sorne of them are showing the larg est earnings in their history, the ex cess profits tax will not reach then to any important degree; and thei stocks, not having gone up to an extent, are purchases" Easterr Southern and Southwestern railroa
 stocks are reported to have bee quietly taken for important financia concerns during the past few weeks It is said increasing efficiency of tn
 managements is partly responsibl for the new investment buying. It
 expected that the centralized direc ton at Washington under the super vision of leading railroad president will do much toward restoring tn transportation systems. Some fnan
 cial authorities are recommendin
 the transfer of holdings of industrial
 not strongly based, to reorganize f<~nq qIxL5