The Bridgeport times and evening farmer., 1919-02-18
HENRY CLEWS'
 WEEKLY LETTER

WkEEIi kkalkn
 A much better feeling developed in the stock market accompanied by an l encouraging rally in many of the 1 leading shares. This appeared to be l based upon the belief that some of the difficult questions facing business, such as the new loan, the monetary outlook. htEh taxation, labor unrest, diminished profits. etc. had been about discounted for the time being at least. These problems have become thoroughly familiar, and the way to their solution though difficult Is seem tngy less obscure. The sharp decline in commodities has afforded some as- surance that the country Is on the way to more normal conditions, and that there are some hopes of business revival with the coming spring, which Is not far distant. Indications of progress at the Peace Conference in Paris; renewal of the arrnisttce; early expiration of present Congress, and vigorous dealing of the authorities with anarchisttc trou'bie-ma.kers in the west, all served to aid a revival of confidence. For some time past there has been quiet absorption of good investments, and their consequent scarcity induced a covering movement Of fair proportions which added to the strength Of values. That the finan- ciai atmosphere is clearing; that in dustry is slowly fighting itself, and that business conditions, freed from
 government interference, are surely returning to the normal are facts be- coming daily more and more appar- ent. In consequence there Is a new
 spirit of hopefulness which if not
 :''shed too fast and not impaired by fresh discouragements may lead to a
 .sartial revival; though 1t Is preIna-
 lure to regard such an outcome as a certainty.
 Among tho favorable features were
 a recovery in steel shares, due to
 statements that the iron trade situa-
 ton was not as bad as pictured and
 that important new orders for rail-
 road materials were in sight. Copper
 shares reacted on the theory that the
 decline had been overdone, as well as
 the belief that lowsr prices for the
 metal would stimulate sales. On the
 other hand the copper industry is
 handicapped by enormous supplies
 and labor troubles; either of which
 may precipitate further weakness. Much interest is shown in the pres pect of foreign government financing
 
 tiating a credit of $50, 900, 600, while
 Denmark Is reported to be seeking
 credit of $10, GOO. .GG0 to s15, 900, GOO, and
 Italy is also known to be seeking fur
 ther accommodation. The announce
 meth of the President of Mexico that
 he was now going to give his atten-
 tion to the reconstruction of Mexico
 and that he contemplated refunding g
 >Mex1cos' debt also created a favorable
 
 weakness of Liberty bonds caused no goncern for the reason that these are really the safest and best investments
 in the market; their present low level being simply the result Of high inter est rates and some possible increase of sales to prepare for the coming bond issue. Secretary Glass's state nents urging Congress to compensate . these issues for the more liberal terms l necessary in placing the next bond .. issue naturally received favorable comment.
 High rates os interest must be an- ttcipated for some time to come The Ss 600, ,00o, 600 Government loan. to be hoated within a few weks, plus the new revenue bill which calls for over :. $, coo 000, coo in taxes, will combined make heavy drain upon OUT na- tiona1 savings, calculated at about
 $15, ,o00, COG, eco. It Is estimated that be-
 tween sS,000 oeo,eoo and $4,ooo, coo, ooo of
 Treasury notes have already been taken by the banks in anticipation of - the coming loan, and the request o1 2 Secretary Glass for authority to issue & total of s25,oo0. .o0e 600 of bonds and 1 notea Is an indication aof what to ex- ? pect. Such an enormous pull upon , our resources cannot be regarded
 without considerable concern. There
 IS no doubt that the country can mees
 these demands, and anxiety Is un-
 necessary; but they mean that new \ capital issues will have to be re. - stdicted to absolute necessities; that P banks will be obliged to use every i. safeguard to avert dangerous int1a- ton, and that the Government must
 place an emphatic ban upon all ex- 3 travagant and unnecessary expendi- lures. By practice of rigid economy l and shutting down of many of the 3 new experimental activities, our Gov : ernment could save enormous sums a since the war Is over and there is nc , oEfger any excuse for the wantor Y waste or money that was unavoidable ? when hosstiHties existed. Nor is there = any longer reason why our Govern. : ment should lend the money which ii F has absstracted from our people tc other nations. We most fortunately 0 possess the only large reservoir o1 8 available capital in the world for the Y t.rne being, and the nations in need or f sundss which apply to the United [, States should come into the oper l. tarket and pay the going rate fol o such accommodations as they require V instead of taking advantage of the
 support and credit of the United l. States Government Even our owr z Treasury will henceforth be obliged Il to consider market conditions, and t< 8 cease depending upon patriotism ol @ hectic public appeals for funds The l. next loan must rely almost enttrel, , upon the banks and other hnancia
 institutions. which cannot any lonse1
 be expected to use funds under theiI e control on any other than a proper y business basis Capital, like labor, ex e poets fair going wage: and its grow F. ing scarcity will compel higher rate. V than the previous loans. Secretar, '+ Gasss suggestions are certainly prac T. teal. and should receive the inteIIi
 gent support of Congress. Mir Gas n ivn-