The Bridgeport times and evening farmer., 1918-08-27
WatSOn'S Weekly
 Letter
lIIIIIIIIIIIIIIIIIIIIIIIIIIlIIIIIIIIIIIIIIIIMIII

The market for securities continues
 to reflect a good undertone. Fluctua-
 tions are naturally restricted. The
 factors operating for such a condition
 are plain. It is usual to have dull
 markets in the summer time. In ad-
 dition to this feature, money con-
 tinues to exert an influence unfavora-
 ble to broad activity. Then, the Washington legislators are busy form-
 ing the new war revenue law, uncer-
 tainties in which make for hesitancy.
 Banks are busy meeting the new de-
 mands for money for the crops, and
 also are preparing to take care of the
 campaign next month. These various
 factors are well known, but repetition
 thereof will serve to emphasize the
 reasons for the narrow markets ex-
 perienced. Until these arrangements
 are further advanced, movements in
 the stock market are expected to be
 specialized to a large extent.
 It is worth while noting that the
 interest payments to the United
 States upon various loans made by
 this nation to its co-belligerents
 abroad will go far toward paying the
 obligations on the larger national
 debt of our country. Drawing atten-
 tion to the Russian situation, the
 Guaranty Trust Co. emphasizes the
 enormous advantage to Germany of
 ability to control Russian raw ma-
 terials, and dwells upon the import Q itary exploitation in this connection.
 It is pointed out how vastly could be increased the production of raw mate
 rials under German methods. It is to be noted with satisfaction, there fore, that Allied intervention is taking l place on an enlarging scale with the intention of checking German ambi- tions regarding Russia, and putting the latter upon it's feet again in the
 fight for liberty.
 Apropos of rumors to the effect that great American shipping combina- tion is in contemplation for after the
 war, it is interesting to hear that in terests identified with the project are inclined to take steps to supply such an organization with ample fuel in LI1S S11opC OI O11 C141SS SOdA 10 HUI g difficult to get and handle and is
 more costly. Some reports go so far
 as to suggest that Mexican Petroleum stock is being bought for these
 sources, which consider the estimated capacity output of the company
 amounting to 35O,0O0 barrels a day in comparison with the actual shipment, due to lack of vessels, of only 75,000 barrels daily. The possibilities loom
 large in this connection. Oil shares of sound companies are coming to be looked upon with favor as good peace
 propositions. But new oil schemes are abundant and should be carefully ex- amined before investing.
 Current earnings of U. S. Steel common stock after all deductions
 are now estimated at $3O share for | 1918. The stock sells ex-divjiend next Friday. New Haven stocI con- | tinues to show an expanding specula- | tive-investment interest, and we be- ] Iieve good results can be had by pur- | chasing it on reactions. It is sug- | gested that a special contract may be
 made by the government with New 1 Haven, American Telephone & Tele- | graph has declared the regular divi- | dend. The stock has shown strength | following the Washington controls announcement of consolidation of competing telephone lines. President | Vail gives assurance of justice for se- curity holders of the company. It is stated that there is sufficient cash 1 buying of standard shares at the pres | ent time to absorb what readjustment | liquidation has been appearing in the | general market.
 Higher prices for Liberty 31s per cent. bonds have been reached during | the week because of exemption priv ileges. The strength in Russian and l Canadian government bonds follow | ing the advance in French issues is i held to reflect improving Allied de- velopments. The tobacco stocks con- l tinue to show confidence in the posi- | ton of these companies, which are
 understood to be reporting steadily l expanding earnings monthly. A good | demand Is noted for equipment stocks | including the locomotive and car shares, whenever the stock market is -reactionary. They show resistance on recessions, and we believe them to be destined for higher prices later.
 There is no doubt as to the success of the Fourth Liberty Loan for which
 starts September 28. It is believed that the individual subscriptions will
 exceed 20,O00,000, as against 17,0O0,- 900 for the last issue. Awakened patriotism has made the American | people a saving people, a bond-buying | people," says the Treasury Depart
 ment, which continues: '"The effect of | the Liberty Loans on the national | character, on our national life, on the | individual citizen and our home life is | immeasurable-of incalculable bene- | fit." Investment thrift Is certain to | be stimulated, and the advisability of holding sound securities of high grade 1 corporations after the war will appeal
 more and more to the people. Con- sidering the features of present gov 1 ernment control of public utilities, in- | cluding the railroads, Messrs. Ham, | bleton & Co. draw attention to the
 point that it must not be confused with temporary assumption of the 1 right of operation in the interest of
 national emergency, for the various properties are today as much the | property of bondholders and stock holders as they were before taken | over'