The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-04-16
WatSOn'S
Weekly
Letter
Observation-Disclosures

Underlying strength in the market
for securities has been a prominent
feature during the past week. Sub
jected to unfavorable news from the
battlefront, prices have resisted sales
of stocks with remarkable frmness
Absence of large short interest, which
is discouraged by the new taxation to
extend in an important manner, SEEM
ingly made little difference so far as
technical support was concerned.
ton. There is only one reasonable de-
duction. 1t is that the market has
been almost completely liquidated'
and that current levels discount most
of the adverse factors in prospect.
Lending color to this conclusion is
the point that heretofore the floating
of Liberty Loans has been preceded
by heavy selling for readjustment
purposes. In the present case that
operation has not made its appear
ance, while subscriptions to the Third
Bond Issue Of the United States have
been pouring into the committees,
stimulated, no doubt, by the unsettle-
ment on the other side Of the Attain
tic. Barring unexpected disaster,
therefore, the outlook on the New
York Stock Exchange suggests that
tudtcious investment on declines in
sound issues will prove profitable, and
we recommend such course accom-
panied by conservatism and careful
buying.
Financial interests would be glad
if the authorities were to follow the
example of the British Premier in
making plain and understandable
public reports from time to time re-
garding the war and American pro-
gress therein. This would set at rest
much of the unsettling rumor which
is evidently circulated from time to
time apparently by pro+German
sources. There is some satisfaction
in the statments that American troops
are being rushed to France more rap
idly than heretofore. The submarine
menace does not seem to be gaining
new ground; in fact, there are signs
in published reports that it is being
modified by Allied activities. Com
menting upon the point that even
should Germany be able to defeat the
Allied armies temporarily a great fin
ancial institution says that so long as
this country and Britain hold control
Of the seas Berlin would never be able
to dictate peace. The President of
the United States Chamber Of
Commerce, speaking to its convention
held in Chicago during the week, said
'"There was a time when industry
was looked upon as souless, but the
business man of today has created
new nobility for the people of the
Nation in those who serve for the
common cause" Thomas W. Lamont
in a Liberty Loan appeal, said he
takes much comfort in the fact that
before the present German drive be-
gan he was assured by British officers
that the Allies, when attacked, would
do exactly as they have done in the
past few weeks. There is no longer
any talk of a short war. Plans for g
prolonged campaign are reported tt
have been made by Washington. Lee
us all put our shoulders to the wheel
and make the war, as well as the
Third Liberty Loan, a great success
The untitled tonnage of the U. S
Steel Corporation report for March
like other steel companies, shows {
substantial decrease. It is currently
reported, however, that the Govern
ment is now employing about 30 pei
cent. of the capacity of of the big cor
poration, and such tonnages are no
made public. A more optimistic feel
ing has been developing with regarC
to the copper shares, due to persist
ent talk of higher prices for the met
al after June 1. Good buying of Ana
conda and Inspiration stocks is re
ferred to. Evidence from many quar-
tiers suggests that the coal and rail
way equipment stocks continue to b
in favor with active investors, includ
ing both car and locomotive issue:
Considerable buying in the marke
now taking place during recession
is based on a feeling that after tn
Liberty Loan campaign is out of tn
way, prices will improve 1t is note
worthy as no new security issues c
i'm portance are coming upon the maj
ket, money not put into Liberty Loan
will he forced to absorb eXistin
securities to a degree suggestin
scarcity when peace comes. After
ton is directed to the fact that tn
crop conditions of the country al
promising. Thre could hardly
anything Of greater Importance to tn
Nation in this war crisis than bumpt
Yields this