The Bridgeport times and evening farmer., 1919-10-14

less adversely affected for the time at least by the lack of prospect of q satisfactory exchange settlement.
 Railroad gnd Rates.
 The attention of traders from the domestic standpoint Is undoubtedly most closely concentrated upon the railroad situation. Outstanding among the developments of the past week was the decision to defer any ad- vance in freight rates until the end of the present year.
 It Is not strange that such a de- cision should exert a depressing eff feet upon the stocks of -transporta- ton companies, yet railroad values on the whole have held up unexpect- edly well because of the growing belief that the Government cannot refuse the responsibility for invest ment values which 1t has assumed by reason of its action in putting the roads into their present position through high wages and a more ex- travagant style of maintenance than they would ever have developed for themselves. Without having any very definite basis for the belief except general confidence and the better feel ing that has shown ttslf in Congress with respect to questions affecting capital and labor the market has taken a distinctly hopeful attitude with respect to railway investments.
 Cur1ously enough and in spite of the threatening conditions in the field transportation as brought out at the Atlantic City convention of represen- tatives of the electric railways there has been a corresponding disposition to feel that the worst has been reach ed in local transportation shares and that future developm ents would, if anything, be better.
 Improved Financial Undertone.
 Despite peSirnistic predictions of money troubles in various quarters the fact remains that there has been decided improvement in many essen tiaI aspects of the financial outlook Although rates have been high they have steadily maintained themselves on a lower level than that of mid summer. There has been a decided falling off in the demand for crop moving funds, due to Western pros perity, and the apparent prospect that there would be a smaller amount of grain to be taken care of. Banking conditions while continuing inflated are nevertheless showing the results of an effort to adjust them to the situation and to prevent undue extensions of loans- On the whole, therefore, bond and stock issues of an investment description have held their own respectfully. It is likely that money rates will continue high for sometime to come. Indeed, under existing conditions this is the best if not the only method of protecting bank funds against undue explo1ta- ton. In some aspects therefore 1t must be regarded as sign of health rather than the reverse.
 Much, however, must depend upon conditions as they develop them selves in the industrial world, and especially as affecting relations be- tween labor and capital during the immediate future.
 Suspension of production in inn portant lines will necessarily throw additional burdens upon the banks and necessitate their carrying bus mess houses and producers that i would not otherwise need such as- sistance. In this connection the in- dustria1 conference at Washington has ben looked to as affording some light upon the general outlook. The illness of the President and his con sequent inability to participate ac- llVely mas, however, Feouceu the SlS- nificance of the sessions. They will have their importance, but 1t is not likely that any immediate or decisive solution of present difficulties can be arrived at
 Caution without pessfmisn is dis ttnctly the wise attitude of both in vestors and spectators at the present moment.
 The country Is prosperous and it's international position singuIarly strong. Unwise political action or in- action may damage 1t and domestic | embroIlments may reduce the invest | ment return of standard issues but | the eventual adjustment of present | troubles seems to be the far-sighted ->>1 s>->->s