The Bridgeport times and evening farmer., 1919-12-02
IL. WATSON'S
 WEEKLY LETTER

The world credit situation may be considered the dominating factor at present in the stock market. The strain is worse in Europe than it is in this country. That condition is partly reflected here in addition to the demands of domestic imitation. Currency depreciation, foreign ex- change breaks and high commodity prices all combine to make the pur- chasing power of the worlds dollar dwisdle. This condition inspires eau tion in the conservative investor. He refrains from making new commit ments except where risks are small. The effect is to make for an irregular stock market Necessary readtust- ments are followed by recoveries on the short interest. Then the active list quiets down and becomes a trad ing affair. The prospect for the inn mediate future does not suggest ma terial change in the absence of inn portant developments of a favorable or adverse character not now in sight.
 The surplus of more than a billion
 
 tion, abnormal costs and subnormal margin of profit with little demand are the factors the copper shares are struggling against at present. Vice President Sisson of the Guaranty Trust Co. holds that the Plumb plan for the railroads is class profiteerjng, and, saying that freight rates must rise, he declares the carriers will fail the country's needs unless rail capi- tai receives living wage. Plans are reported under way to postpone for three years the payment of interest to the United States on war loans by Great Britain and the United States. The same rate of dividend of 75c. a share as was declared by Montana Power directors three months ago has just been announced by the di- rectors. President Carl Gray of the Western Maryland By. is expected to be President of the Union Pacific Ky. Relations between Washington and Mexico have been strained by the Jenkins case. The statement comes from Washington that the credit fa~ cilities of the Federal Reserve Banks will never be used for speculative pur- poses to the same degree-~as during the past month in the New York dis trict. General Motors, with 14.80o,- coo shares of co nmon stock, will Jon be the biggest industrial con in the world. Before the war com mon stock issue totalivu 1880 shares. The common stock capitau- zation of the United States Steel Cor poration is about one-third as large.
 Mr. Charles NJ. Schwab makes the interesting statement that while cot ton and wheat have had their day, the steel indusry is king It present, being greater than any other single product. A production of A0.0OG, 900 tons is indicated for this year. This is ex- pected to furnish a revenue larger than the corn crop. ''The labor crisis is not big enough to produce labor efficiency said MT. Schwab. The world Is engaged in a riot of luxurious expenditure" MT. Schwa b believes General Wood Is the leading light in the race for the Republican Presidential nomination.
 The Thanksgiving Holiday of course closed the Stock Exchange on Thursday. There are some things we should be thankful for. While we have not been able to enjoy the fruits of peace, yet we can begin to spell the word. While we in New England watched the carving of our turkey, perhaps Europe looked for ward to the time when its Turkey will meet a similar fate.