The Bridgeport times and evening farmer., 1918-09-10
WatSOn'S Weekly
 Letter
5lIIIIIIIIIIIIIIIIlIIIIIIIIIIIIIIIIIIIIIIIlIIIlIE

Speculative activities in the stock market continue under the restrain ing force of money scarcity. This does not prevent investment absorp- tion, which is reliably reported as in- creasing. Favorable war news con- tinues to stimulate investment buying of standard issues. It is not only appearing from domestic sources, but neutral nations are supplying a sub stantial accumulation. There are re- strictions in force with regard to Eng land and France, checking investment of funds outside of those countries. When these embargoes are removed, it is safe to predict that an addi- tional buying power of this character will make its appearance. This ele- ment is operating as a stabilizing in fiuence in the New York Stock Elk change market, checking professional tendencies to sell short. The result is a trading market, with special is- sues only displaying aggressive bull ish trading movements. The general policy of treating the market as a bull trading affair would seem to be the best for the present. On reac- tions, we think buying opportunities for turns will offer themselves in the leading securities.
 The short interest in the industrial and railroad departments seems to be of fairly substantial proportions. It has been put out on account of the money strain, but does not appear to be confident of it's position. The gen. eral market being well liquidated, op- portunities to cover are not entirely satisfactory to this element, which is quick to retire when evidence of in- vestment absorption appears to re- duce available covering material. Good judges are of the opinion that the largest bear commitments out standing are concentrated in the steel and copper groups. There is also said to be a short interest in some of the railroad stocks. Considering the breadth of the market at present, it is safe to say the technical position, under these conditions, is favorable to improvement such as may be permit ted by the money requirements of essential war factors. Declines are, therefore, likely to be of but moder- ate extent and of short duration. Un- der the circumstances, the short side
 
 Further progress is being made ir the war taxation bill. It Is expected that revisons by the Senate will be ir the direction of conservatism The Secretary of the Treasury will have able support in that body against ob. jectionable radical features. The prospect is not favorable for an i'm mediate enactment into law, however and considerable debating is deemed probable. The general propisitior seems to be to pay the expenses o1 the war with one-third taxation and two-thirds bond issues, which policy is looked upon in Wall street as de sirable. The passage of the new draft law at this time is considered oppor- tune as regards the bringing home tc the whole nation the necessity of win ming the war as speedily as possible land will doubtless stimulate subscrip- tions to the Fourth Liberty Loan, the campaign for which starts toward the end of the current month. We expect to see it g. great success, and esti- mates of the individual subscriptions run as high as 25.000.00 as against II, COG, 900 for the Third Liberty Loan.
 It is stated by authorities that prac- tically all the copper metal produced during the next few months will be required for industries essential to war purposes Other consumption must wait. That its demands later will maintain high prices goes with out saying. Agitation is already ob- served with regard to raising the present fixed price, which expires November 1. The fact that bullist operations in low-priced railroad stocks do not require as much money as in Tigh-priced issues is directing speculative attention to the attrac' tions of New Haven, Missouri Pa. cific and Southern Railway, all o1 which are reported well taken. There is talk of fixing a price for cottor since the last report of the govern. ; ment, recording heavy damage to the growing crop. Grain crops continue to show progress as a whole, although corn has deteriorated. The campaign to save gasoline and oil is drawing attention to the importance of thiG industry, and oil stocks continue tc reflect bullish operations from time tc time great deal of relief will come to the investment community if di
 gestion of the final revision of rail- road contracts shall prove satisfac- tory. The. delay in this regard has been provocative of much criticism from many quarters. Publication o1 the railroad contract terms on Friday has ben followed by ob0e ctions iron security holders which it Is hoped vii