The Bridgeport times and evening farmer., 1918-02-20
WATSON'S WEEKLY
4 MARKET LETTER

reflected from the recent drastic liqui-
dadon and the 10 wtotal of brokerage
loans, provides a basis for moderately
constructive action in the stock
market in the absence of ursettling
news; but the general temper of the
financial district Is such as to suggest
a waiting attitude in consideration of
either a German drive against the AL
lied armies or overtures through Aus
tria for peace parleys. The impend-
ing Liberty loan issue, although this
has been postponed with uncertainty
as to the rate Of interest it is to bear,
furnishes a check on bullish senti-
ment that might otherwise be caused
by oncoming spring and relief from
the grip of winter. The restraining
factors are such as to lead 10 the be-
lief that activities In the stock market
are likely to be confined to special
ties, while the general list marks time
in an irregular manner, but continu-
ing more active.
Attention is forcefully directed to
the attractions of the railroad depart
ment by reason Of the progress re-
ported in legislative matters for relief,
and this tendency has been somewhat
accelerated by the splendid earnings
report of the Southern Pacific for
December and also by the placing of
Union Pacific upol- regular 10 per
cent. dividend basis with suggestions
that possibly other systems with a
large margin of safety in earnings
over dividends may later follow suit.
Undoubtedly, with the spectre of gov
eminent ownership removed, the rail-
road list offers good opportunities for
speculative investment. Norfolk &
Western, Great Northern Pfd. and
Reading are being favorably referred
to in active channels impressed by the
latest railway developments. High
grade rails are not in largo supply at
current market levels.
War developments have chiefly
been confined to talk at various CAPT.
tails. The final collapse of Russia and
the signing of a peace pact between
the Teutonic nations and Russian
Ukraine. have been factors promot-
ing apprehension; but the market for
securities seems to have largely dis
counted those developments. The
closer unity of the Entente Allies has
/ cen an outstanding and gratifying
feature Of the news. 1t remains for
America to speed up and rush its
armies to reinforce those of France,
England and Italy. Washington gos-
sip is referring to tendency toward
issuing the next Liberty loan upon an
investment basis. e.. liking rate Of
interest that would make it business
as well as a patriotic proposition.
Such a plan would doubtless assure
IL, la Az In Antn NP iGcu m
seems to be postponed until some
time in May, there would appear to be
room for a spring rise in the market,
other factors permitting. 1t is re-
ported that the buying of U. S. Steel
is good during recessions. We think
an improving demand would be seen
for all the steel, copper and industrial
stocks should the freight congestion
clear. The investors position is Sc
cure, for the United States govern
ment, as one writer aptly puts, has
underwritten American finance and
credit
AS there are only 16 business days
in this month the poor broker is
wondering how he is going to pay the
landlord. In lieu of customers, the
broker has been overwhelmed with
marvellous detailed statements that
are required by the Internal Revenue
department 1t takes a Philadelphia
lawyer to figure out just what all the
requirements are. When he complies
with the elaborate detailed forms
asked for in the conduct Of his bust
ness the broker is then required tc
make up almost as elaborate a form
for his income tax return; and he
comes rapidly to the conclusion that
there is much truth in the old saying
blessed Be Nothing" However. this
does not impair his loyalty or hi!
faith in his country and the grea
cause for which it is fighting. Meet
ing these requirements is only another
way of proving his devotion.