The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-08-15
WatSOn'S
Weekly
Letter

Observation-Disclosures

While the market for securities con-
tinues narrow, it displays a firm I'M
dertone. There is an absence Of
pressure of long stock, suggestive of
completion of liquidation. Inspira-
ton to buy aggreSAively is lacking and
huliI5h Operations are restricted to
specialties. Briefly, the market con-
tinues to fiuctuate in a trading area, a
vacation midsummer affair such as is
usually witnessed in the hot season
1t is apparently awaiting new stimula-
ton. We think it will be much more
responsive to good than to unfavora-
Bile developments owing to what
seems to be a strong technical posi-
ton, which is supported by low brok-
erage loans, a fair short interest and
more confident war sentiment. The
latest government crop report is a
cause for congratulation.
Equipment shares continue to be
most in demand among the active
speculative investment channels.
Semi-investment absorption has been
reported during recessions in this
group. The oil stocks are coming to
be looked upon more in the light of
desirable peace as we'll as war issues.
The tendency of earnings in this
group is toward steady expansion.
While the copper metal producers
were not favored with a higher fixed
price for copper at the conference
ended during the week, the decision to
maintain the 26-cent rate until No
vember 1 was looked upon as indicat-
ing that production is sufficient at
present. 1t is noteworthy that buy
ing of the representative steel shares,
especially Z. S. Steel, appears to be
OF very good character. The ability
of these larger corporations to make
| big profits under handicaps imposed
! by the war has done much to impress
investors with peace possibilities.
Taxation plans are coming to a head
in Washington, and it is expected that
they will be settled into a concrete
form before the end of the month,
| thereby removing from the specula-
tive field an uncertainty that has OPP
| Grated to check activities in the stock
market. The present tendency of the
legislators is generally inferred to be
|
ly imposed than in the past and it is
to be hoped that they will be i'm
pressed with the necessity of pre-
serving the goose that lays the
golden egg essential to the success
full prosecution of the war. While
taxation will be heavy, it is felt tina
the worst has been seen as to corpora
tons whose securities are listed on the
New York Stock Exchange, and tina
when the facts become public the
market may ignore them.
War progress for Allied accoun
continues to be gratifying. There ii
now unity of action that speaks wei
for future teamwork. Japan is to b.
supported in the Siberian expedition
while American troops are already II
the northern part of Russia, welcom
ed by the conservative elements O
that great country. When we an
alyze the news from the western bat
tlefront, we cannot but feel greatl
encouraged. AS aptly put by a Wal
Street man in commenting upon tn
Allied counter offensive, Genera
Foch has the enemy at disadvantag
) when he attacks where long defenc
> preparations have not been made be
cause the proverbial thinking
German is not equal to emergencie
) developing" 1t is the Frenc,
l strategy and the British doggednes
) supported by American dash that wi
] probably be found equal to all emer
gencies henceforth now that the flu
power of the United States Is NOV
ing forward. The new offensiv
= launched by the British has game
e ground at a rate strongly suggestin
e that the fighting power of the Ger
9 mans is on the decline, and is con
5. sidered highly encouraging.
0 Late news reports progress in tn
S movement for revision of the railroa
(, contract by the government and ia
: vorable interpretations are bein
l. placed upon the developments in tn
connection. 1t may be safely sal
that one of the factors of restraint
the stock market recently has bee
e the delay at Washington with regar
= to carrying out the law taking owe
% the carriers in accord with the spir
,r of the same. Assurances are fOrtl
: coming that the low-priced railroa
lie stocks like New Haven and Nilsson
l. Pacific will receive special consider;
D. ton as a result of revisions in II
,v plans of the government control.