The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-05-21
WatsOn's
Weekly
Letter
Observation-Disclosures


Bullish tendencies to which atten-
ton has been directed in this letter
In the last two weeks, developed ag-
gressively during the past week, and
prices responded sharply to what ap-
pears to be in part a strong West
ern demand for securities. We might
say truthfully that a. great deal of
the money legitimately made in this
country daring the past year or two
has been received by the producers,
particularly the Western farmers,
who have obtained higher prices than
ever before and who have had large
crops with promise of bumper yields
in 191S-aIl of which is capital. This
is going into investment channels and
means speculation by farmers, pro-
ducers and others. Money seeking
investment most naturally tends to-
ward the medium of the stock mar
ket for several reasons, the first of
which is that the New York Stock
Exchange is today the only great
open and free market in the world.
The Chicago Board of Trade is lin
tied in it's trading in wheat, corn and
oats; while the New York Cotton Ex-
change Of late has also had limita-
tions established. Therefore, the at
tractive spot for quickly acquired
proflts-or losseS-is through the
New York Stock Exchange medium.
This is not intended to be an ap-
plication of Christian Science, but
rather is indicative as to what may
be expected to follow in the New
York Stock Market whom the volume
of trading begins to increase. It can
only mean a rising tide of specula-
ton But discrimi 1ation should be
carefully exercised in the selection of
stocks and bonds when seeking pur-
chases.
We again refer to the. higher grade
Of railroad stocks, which, if they OBJ
tain what may be the equivalent of a
Govern ent guarantee of fair re-
turns, ought to be raised to higher
class as Investment securities. We
think the Government must recog-
nize that the railroads are entitled
absolutelysto such a guarantee. The
results of such guarantee will be re.
turns that will be given back to the
Government in the way of taxation
direct or indirect. This is the easiest
way for it to obtain a great part OF
of that kind toward the railroads an6
producing corporations is certain tc
revert in some form to the benefi
and credftOR the. Government; and W.
think Mr.. McAdoo, the very active
Secretary of the Treasury, as well a.
the very active Director-General o
the Railroads, is bound to see thi
and act in broad way that SHOULD
rebound to his further credit. Owinl
to Mr.. McAdoo's late activities, on
of the objects he sought to accom-
plish has met with splendid results
l. e., large increase in the numbe
of Liberty Loan subscribers; it bein
reported that there were over IT,
900, 900. persons. who bought the las
4 IA per cent issue. Certainly tn
Administration has reason to congrat
ulate itself on this splendid result
and the.loyalty of the citizens of tn
country, as well as their Iberality
is to be most highly commended.
There has been buying of the cop
per issues based on rumors that tn
fixed price for copper metal may b
changed ITO a higher figure than tn
present prices. Action is schedule
to be taken next Wednesday. In
spiratfon, Anaconda and Utah haV
teen strong and active. Persister
advices circulate ito the effect that
substantial block of New Haven stoc
has been taken from the market re
Gently, following the report hereto
fore referred sto that evidence of &goo
buying was noted in this issue, an
the tendency is to higher price
ShipbiIdfng and ordnance operation
of an extensive character have bee
largely responsible for the speculs
tive activity in the Steel group, whel
earnings present and prospective al
providing Incentive to buy. Tradir
circles are making a good deal
capital out of the point that the final
cial powers have apparently lent the
support to rising prices possibly wit
the idea Of improving the corpor;
ton financing situation. We have fir
ouently directed attention to the raj
way equipment issues as being in lii
for improvement because of Il
splendid outlook for a big volume
business for some years to com
Recognition has been extended in
more pronounced manner to the
attractions marketwise during t
past week. We are of the opini
that in view of the fact that the W
is not yet won it will be wise not
become over-enthusiastic-o the bu
ing side at the higher levels reach