The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-04-10
WatSOn'S
Weekly
Letter
Observation-Disclosures

Acting factors directly affecting
fluctuations in the general stock mar
ket still include so many uncertain
ties that continuance of a conserva,-
tive trading position would seem to be
the part of wisdom until the future
unfolds itself more clearly. We have
Iunbounded faith in underlying funda-
mentals of Cause and Country. but
investment should move
with care at present, and in making
commitments it ought to employ safe
guards against surprises and the
changing fortunes of war. These
superficial war changes often produce
sentimental conditions of temporary
influence marketwise, and are unset
ting unless caution has been the
watchword in new ventures Equip
ment, coal, shipping, oil and copper
securities of tried and tested worth
are offering good opportunities dur
ing declines, but investors are not in
clined at present to follow. up ad-
vances.
| Money matters are displaying a lit
tie more ease, but conservative quar-
ters are not disposed to be over-con-
fident as to apparent indications.
There is no doubt that this factor,
combined with preparations for the
flotation of the Third Liberty Loan,
! is restricting activities to a material
degree in the market for securities.
Increased taxation imposed upon short
sales of stocks is another feature op-
Grating for a cutting down of spec
ulative activity. Underlying the
whole proposition of restriction, how
ever, is the uncertainty with regard
to the prolonged battle in progress on
the western front in France and the
possibility in the near future with
German military power still unbroken
and Am erica not yet in the fight to
anywhc near its great strength.
An encouraging basic development
is the statement by expert authorities
that the outlook for the new crops is
favorable. This is one of the most
important considerations of the future
in view of the Allies dependence
upon the United States for food
Banking interests are encouraging in
Ivestment in the securities Of sound
industrial corporations, but they are
not disposed to lend aid to any spec
uIative campaign in the stock market
on account of the necessity for hold
ing in reserve and at command all re-
sources required to make the Third
Liberty loan offering a great sue
cess.
The statement understood to come
from the railroad control that the
greatest freight building program in
the history of the country Is at hand
forms the basis for the bullish senti-
ment which has resulted in substan-
tial advances in the stocks of rep
resentative equipment concerns like
American Car & Foundry. Attention
Is directed to the favorable state
lments made by the coal subsidiaries
of the coaler railroads with sugges.
ton that where transportation earn
ings are not good these carriers will
nevertheless be able to make eDcellen
reports as to total receipts. The rec
ommendation of Director General Nc
AGtoo that the various Safes impose
tax burdens on the railroads as lightly
as possible is accepted as being in line
with Federal aid for the New Haver
and similar systems. Charles M
Schwab says that transportation con
ditions are improving, but that hi
cannot say as much of labor affairs
We hope for Improvement in labo
later. Shipyards are working at 1O
per cent capacity and steel plant
around 80 per cent, according to lat
est advices. Free of price fixing, cot
ton is again reaching new high levels
Inspiration Copper has displayed {
good deal of strength based on re
ports Of large cash accommodations to
falling more than $1O, 000, 900 by thu
company, something that should in
sure the payment of dividends a
present rate. The outlook for cope
, producers during 1918 is stated b,
, high authorities to he much brighte
than in 1917. The market has late1,
displayed a disposition to recogniz
: this to some extent. The New Yorl
Stock Exchange is not TO contest til
= new short sales war tax. This is i
/ line with the policy Of the Exchang
|, to bear all war burdens patrioticaIl
n and without complaint.