The Bridgeport evening farmer., 1917-09-11
WATSON'S WEEKLY
 MARKET LET TER

A waiting position in the market for securities seems still to be justi-, fled by the developments up to the present time. Uncertainties of im- portafiSe remain to be disposed of. Investment confidence has been se- verely shaken fss
 During the unsettlement of senti- ment number of standard railroad and industrial shares have declined to a level where 1t may reasonably be asserted they have discounted uncer- tainties likely to appear in a read justment to peace conditions. We re- fer to the fact that if the war should end soon it would mean that the heavy borrowing would cease and lift pressure. from the money market; that the necessity for price regulation would be done away with; that large taxes would not be needed, and that the labor scarcity caused by the draft would disappear. These are factors it will be we'll for active investors to keep in, mind.
 While it is impossible. accurately to forecast the end of liquidating move- ment which has reached large vol. ume, it seems certain that If Wash- ington will show a. little more sanity along the lines of the Senate rebuke Of radicalism in taxation measures, some of the confidence lost will be re- gained, and prices should recover to a considerable extent.
 We continue to advise conservatism fin new speculative investment activi- ties in the security market pending clearing of the atmosphere; but as the stock list has had a material de- cline much of the dangerous weak ness has undoubtedly been removed, the tecEnical condition has been made stronger, and the money situa- ton is relieved and made ready to a large extent for a satisfactory hota- ton of the new Liberty Loan by the banks. The necessity for the creation of cheerful market condition in this connection strongly suggests banking support for the security list against professional attacks around current prices.
 Large buying orders have appeared in the market, reported to be from influential sources, during the breaks in U. s. Steel, Southern Pacific, American Car & Foundry. Utah Cop per and Pennsylvania. It is estimated that if U. s. Steel reports a surplus in the present quarter as large as that of the second quarter of 1917, the final surplus since Jan. i, 1915, will be about s7o share on the common stock.
 In discussion on the subject - of copper conditions and price fixing in the United States the London Statist the leading financial publication of Great Britain, has the following wig. orous editorial: "So far as inability to grasp the elements of economics Is concerned there. appears little to choose between our own red tape autocrats, who have tied themselves into a Gordian knot through their in. effable stupidities, and the wiseacres of America, who, by slashing the price of copper, seek to put blight upon production and to>remove at a single blow all chance of extracting from the copper fraternity excess profits with which to help carry on the war The copper industry across the Atlantic sees sno reason why 1t shodfd be- singled out for restrictive measdres on the plea that their pro- duet is an essential war material, when the cotton growers, for instance who are rolling in dollars, and whose product is of equal importance for : destroying Huns, get off scot fee."