The Bridgeport times and evening farmer., 1919-11-04

and that it is likely to be terminated when conditions may became such as to give a sufficiently severe shock to the superstructure of credit that has been built up. Meantime, opera tions on the exchanges need to be con ducted with great caution, not only because of the fact that the situation is now overstrained and likely to sui fer a setback at any moment but be- cause of the money condition. These money conditions include not only the presence of high call loan rates but apparently a decreasing volume of funds available for the support of opera tions in securities. The supply of loan funds usually received from the interior has, it would seem, been less in volume than usual due to the local demands for funds to be used in carrying stocks or comm oditieS. This makes a market situation which calls for special caution.
 Industrial Conditions Discouragfng.
 While the strong stand of the President and his administration in regard to indust2Hal conditions has treasured operators. it remains to be seen how far it will be possible to bridge over the present situation without a, serious check to industrial
 output and without much suffering
 on the part of the community. The general sentiment of the country is
 evidently behind the administration
 in it's coal mine policy, yet the ap-
 plication of that policy in full would
 not be altogether easy if a vigorous strike should actually be attempted
 by a large body of miners. Suspen- sion of mining, even ill part, would.
 $I, sI1,, u
 striking statement of Oct. 25, result in the incidental suspension of many
 industrial enterprises with conse-
 quent losses which could not help af-
 fecting the value of the shares of such concerns. Meanwhile, the steel
 strike an> other labor disturbances are drawing to a close, and the out
 come, coupled with the lack of any
 support in public opinion, has been
 discoura ging to those who contem-
 plate the calling of new strikes of the
 same general variety. There remains
 the fact that period of industrial disturbance and unrest is before the
 country, and that great caution in the purchase and holL-ng of indus- trial securities is necessary.
 Imitation Continues.
 Active imitation of our banking system continues to be the note- worthy feature of the time. Although there was a temporary improvement
 in the reserve percentage of the Fed eral Reserve system week ago, it was evidently the result of a fortuitous conditions, the steady movement of funds being downward and out of the system. T lis again fntensif1es the speculative situa ton because the mar gin between the legal required re- serve of Reserve Banks and the actual gold holdings is now becoming mar row It is not strange m these cir cumstances that call money should have reached a higher level, and that it shou l react toward that level whenever there is any excessive de- mand for funds for the carrying of shares or other speculative commit ments. This has been the experience throughout the past month. as the figures clearly show, and today the prospect is for an even more active process of restraining undue specula- ton through the application of high rates than has been observable ln the past.