The Bridgeport times and evening farmer., 1919-12-01
HENRY CLEWS'
 WEEKLY LETTER

A period of transition and hesita- tion in the stock and securities market naturally set in after the close of the sharp liquidation of some two deews ago. This has been intensified and prolonged by the action Of Con gross in holding up several important measures while the coal strike and the advent of the Thanksgiving hoH- day would in any case have tended to induce a waiting mood. As a result traders and investors have been ds- posed to look for the arrival of more definite developments before com hitting themselves much further. It would now seem that some time must eIapse before the final adjustne ent of the large questions which are still open in national political and busi- ness policy. Trading in securities has accordingly been upon a decidedly lower plane as to volume and prices.
 International Situation.
 The weeks developments have not been altogether encouraging to those be induced to reconsider the Treaty Of Peace. Plainly there Is still some difference of opinion among the lea ders of the opposition as to whether 1t is or is not wise to mako the document a "poNtical issue" des- pito efforts to bring about unity of action. That many believe such policy would react upon those who were responsible for it is evident. The actual outcome cannot be determined until the nature of the Presidents message at the opening of the new session Is known. Should he offer concessions of a reasonable character pu bile opinion will undoubtedly exert great pressure in favor of immediate ratification, and should this ratifca- tion be practicable it is likely to oc- cur before Jan. l. Such action would tend to strengthen foreign exchange and to improve the position of trans actions which are awaiting a more stable international condition before being put through. An interesting feature of the week has been an- nouncement that plans are under way for funding the interest payments due the United States by the Allied gov ernments during a three-year period. Req dinesS to consider such a plan was announced by the Treasury De partnent some weeks ago and the fact that 1t is ROW renewed shows
 
 the government are still interesting themselves actively in European af- fairs, and are exercising a strong in fluence in those affairs-as might req sonablv be expected when they are able to take action which amounts to a fresh credit of $5OO,OO0,OO0 per an mum.
 Money and Banking.
 Money rates have ruled easier dur ing the past week, the charge for call funds going as low as per cent. and ren1a-uing there. At the same time there has been a tendency to reduc- tion in volume Of business on the Ex- change. Traders have felt that 1t was useless to attempt any very great in crease in business even with easier money if such increase was certain to result in the esta blishment of another very high level for call funds. The basis Of their anxiety has been found in the fact that despite the announc- ed policy of contracting credit said to have been adopted by the Federal Reserve Board there has been an actual increase or expansion in loans with a declining reserve percentage. According to the latest report of the Federal Reserve Banks the reserve of the system was very nearly as low Nov. 22 as the lowest point ever be- fore reached. It would appear more and more certain that contraction in New York has been offset by expan- sion in the interior and that the poll cies of the Federal Reserve Board have not resulted thus far in bring ing about a reduction of speculative operations in the South and West. This situation has undoubtedly caus- ed dissatisfa ction among operators in securities, their feeling being that buyers and sellers of cotton. grain and real estate are not entitled tt speculative advances in any grea ter measure than are they themselves. Further contraction throughout the country Is, however, to be expected as a necessity of the near future and 1t would seem that continued high