The Bridgeport times and evening farmer., 1918-12-10
WatsOn's Weekly
 Letter
InIlIIILIIIlIIIlIIIIIIIIIIIIIIILIIIIIMIIIIIIII

ment from war to peace conditions now under way 1n the industrial world. the stock market still moves drregularly, with cross-currents of H. uuidation and special advances where there may exist specific reasons for higher levels. This mixed fuctuation Is expected to last until the bases Of business shall have reached a more stable position. Meantime, the stock list as whole may remain in trad ing range near present prices, await ing changes in the big trades.
 Money conditions after the turn Of the year are expected to display i'm provement. By that time some of the large pending government transac- tfons will have been concluded, the interior return of funds to New York will have been passed, and the en'u- of-year disbursements will have taken place. Release of funds is taking place with the disposition of invento- ries in the tendency toward getting business in general on a sounder basis for reconstruction work. Investment funds are therefore naturally accu- naulating in money circles, and may be expected to seek employment in the Stock Exchange market.
 Professional operators largely con- trol the superficial fluctuations of the stock market at present, but they are between two fires, namely, the bank ing element will not countenance a broad rise on account of present money strain, and, on the other hand, the steady investment absorption Of good securities reduces the floating supply to a point where it Is difficult to d1slodge stock in volume for coY- ering of shorts. Unless something un- settling occurs, therefore, the short interest outstanding is likely to prove, in combination with investment buy ing, a strong check to beartsh at ! tempts to lower the general market radically.
 Optimism Is expressed by the Ma 6ional City Bank of New York in its latest circular on financial conditions saying that business readjustment should not cause alarm. 'It is not possible" 1t says, Ito doubt that a great period of prosperity awaits the country as soon az the readtustments to @ peace basis are made, and in our opinion the required readjustmente are not such as to occasion alarm The situation is inherently strong. Stocks of goods of all kinds are low all over the world, and people have been economizlng in purchases until their needs are pressing. This coun- try ciould have had a great foreign trade during the last year despite high prices, but for the enIbargoes and shortage of shipping. Construc- ton and repair work Is behind. Ger many, the greatest steel exporter be- fore the war, has exported none B0I four years, Belgium and France, also exporters of steel, have sold none ir the same time, and Englands sales have been greatly reduced. These ar rearages naturally must be made up The demands of Europe upon tht ~ European supply will be so great tha the other markets will have to lool largely to the United States for early attention. Furthermore, this coun try's capacity to absorb iron and stee IS very great, and there is unques tionaibly a heavy domestic demand il waiting"
 Prices in the metal trades are un
 sttled, both steel and copper reflect IFS the waiting policy of consumers EHormer Assistant Secretary of Wa kSJohn D. Ryan, who had charge of tn Enited States aircraft division, ha AEeturn to the business world. H Twas elected chairman of the Board D "the Anaoonda Copper Co. and als president of the United Metals Sell ling Go. His splendid record in tn AWar Department following that in tn copper trade prior thereto, may be de pended upon to be duplicated in h latest responsible positions Dhe cov per industry welcomes back his wid experience and progressive policies l @ belief that the reconstruction X that trade will be rapid.
 Tho Nation turns its eyes upon tf Peace Congress in France, to whic the President has gone in person. H Message to Congress, indicating tn; the Administration would not adv, cate Government ownership for u railroads, is favorably received in il yestment circles. It is expected tn tairer treatment will be accorded u transportation systems when they a returned to private ownership, al that the outcome, while entaili, Broader Federal control, will be be, official to security holders as well shippers. 1t would seem that the f pure is brighter for the railroads tn; Tor many yeans past, and we belle. stocks of leading companies who earning provide substantial margi
 over dividend requirements, offer q tFactive buying opportunities on ma
 ket declines,
 The spirit of service that enabI
 our country and its Allies to win t
 war Is certain to be operative in sol
 ing the problems of peace, includs
 Chose vital issues between ca pttal A,
 labor, It is reported that large I
 construction orders for account
 BFance aud Belgium are already f
 Ing negotiated through Washingtt
 This is 8 fererunner of what may
 expected, If leading commercial N
 lions will observe the natural laws
 supply and demand in readjustme
 period @ great period of prosperitv
 Considered almost certain afterwa
 The behef seems to be quite gene
 that the business readjustment in
 Un1ted States will take from three
 Sour months. It should be reme
 Dersd that the stock market begins
 discount broad developments of t
 character some time in aldh7a pce