The Bridgeport times and evening farmer., 1918-12-03
WatsOn's Weekly
 Letter
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 The outlook in the stock market fla | vors a continuance of the readjust- | ment to peace conditions. Prices are | refecting the confusing cross-currents in industry Cancellations of war or | ders are accompanied by evidence of | new developments in the direction of peace. The liquidation has made | changes that promise money market relief in the near future to an extent that will probably remove the acute strain for a time. Tendencies in this direction will be helped by the return of funds from the interior agricultural regions. Briefly, the readjustment in the market for securities is, to large degree, effecting a speculative cure. 1 Bearish activities were overdone in the stock market during the current week. Appearance of support from | large interests was immediately fol- lowed by sharp rallies, led by special issues. There are indications that professional sentiment will continue flo over-extend on the short side, be- cause of the uncertainties surround | ing speculative conditions. With in vestment continuing to make itself manifest in the sound peace stocks, 1 steadily diminishing. The amount of stocks for bear covering is, therefore, not of large proportions, and raiding will be found to be rather dangerous. Technical conditions at the present time are a. factor closely to be watched, for in professional markets they often provide a good guide for profitable trading operations.
 Ther@ ShtoI1I6 he kent in mind how ever, the underlying fact that the present period of readjustment is temporary, and that there is a sure constructive activity coming. The un- certainties of war are past; the cer- tainty of peace is ahead. The former were not subject to accurate fore cast; the latter will be as sopn as ar tificial restrictions shall have been re- moved. The tearing down process has stopped; the era of upbuiIding is inevitable---upon that single fact may be based security market commit ments during declines in prices Care ful selection will bring good results. We think sound railroad dividend paying issues are attractive on mar ket breaks. especially those which have demonstrated their ability during the war to earn a substantial margin over dividend requirements. Thesrail- way equipment issues are also in strong position, for their assets have been built up by large profits since 1914, and the prospect for future bus mess is excellent when we consider the fact that the world is short of rolling stock. Stocks representing producers of food should be examined on account of the fact that the de- mand from abroad for food from America during the next year or two will be of large proportions.
 Washington news has not been of 8 character welcome to Wall Street. P Mystery attaches to the resignation of the Secretary of the Treasury, who | was regarded as one of the most able members of the Cabinet The. Presi-
 dents trip to France has also aroused
 Q great deal of comment and is a, fac
 tor in shaping sentiment. The contin-
 uance of the German propaganda, in , an attempt to divide the Allies, has
 added it's part to uncertainties The I natural condition of confusion pre- Y cedent to the Peace Congress in I France of course affects speculative ,, channels The politial situation al a nome may be regarded with more
 composure than that internationally n on account of the conflicting interests . Of the great nations that must be set a tied. But we have confidence in the I common sense of the leaders who have , won the war, and believe that the " achlevements of the past will be du-
 plicated at the Councils of Peace.
 While there have been expressed Il doubts on the point of government . ownership, we think they may be dis 1 missed with the remark that the Re.
 publican control is. not in, favor o1
 such development---and Congress vii q be in their hands in March. Further ', readjustments of a. more definite char, - acter are expected at a copper meta a conference with Washington in the
 next few weeks. Steel affairs are d tending toward a more settled condi. V tion. It is reported that there hat been some selling of good stocks tc o protect issues that have not shown 8
 fair market. Liquidation of labor is
 progressing. While wages may not be ', reduced at present, men are being laiC # off. It is probable that with the grad. | ual return of soldiers to civil life tni! ., will proceed more rapidly. The wait. r ing tendency in trade must inevitably =, rea6tust the labor situation.
 OE DETTTEONTED