The Bridgeport times and evening farmer., 1919-05-21
I. |. WATSON'S
 WEEKLY LETTER

Encouraged by favoring trade and other developments, bullish outside sentiment continues to make for ac- tivity and strength in tho stock mar ket and in the absence of disturb ing news the momentum which has gained hcadwaJ under the influence of speculative fever will run the usual course untn techntca, conditions force q corrective general reaction
 Ii is . time for conservative action in making new comm1tments, and in dhis connection it may be said that diversion of speculative operations to tho railroad list and other groups with attractions which have not ad- vauced extensively would permit strengthening of positions weakened through overbulling-
 High prices are reported for cop per metal, Japan having taken 5oO,- 600 pounds at 16 cents on Wednes- day with a et1il higher levsls reached in quotations afierward. The strong ; CT tone in the copper metal market combined with the rise fin silver which is produced extensively by companies like Anaconda--haye been responsible for a good deal of short covering in tho copper share group
 United Statee Steel has displayed a tendency to advance, based upon what appears 4o be re-estabIishmeus of n natural market for steel pro- ducts, and a feeling that tho worst has been seen in that industry as a whole. Sentiment i'm steel circles is more cheerful, and this has been re- fiected by improvement in fhe price of Republic 5seel and some of the tudapeudenta lierad nm. aF7,xcff-fr1rza
 It is rumored that France is nego- tiatins for a large tonnage of steel rails Reconstruction work is said to have begun, and a steady flow of business from Europe is expected. In this country it is reported that signs are not facking of a revival in build ing. encouragedsby brilIant grain crop prospects, An export market in the basic metals ds .understood to be developing on rhesPaninc coast
 There can be no question that in- creasinG activity in steel ana other trades means larger btisiness Tor the railroads. which arc to be taken care of by ConGress. called to meet in epe- ciai session next Monday. There is d. strong sentiment in leading circles in favor of the Warfisld plan of re- habi1itation of the railroads. Hon. Elfhu Root having announce6 him. self as being in favor of it. In this connection it ts crsstfns to note that Senator Cumn,inS of Iowa, Pro- sressivs. whose selection as President pro tenn of the Senate reflects Re- publican Party harmony. recently said IL would probably be necessary for. Congress to appropriate billion dollars, as a. revolving reiief fund for the carriers instead of 750 .o0o,oOo, as at first proposed. He advocates the consolidation of the railroads into fif- teen or twenty big systems, private operation through Federal incorpora- ton. and fhe guarantee of a low rate of return upon the capital invested.
 Oyer-speculation has taken place in the oil share list, and we counsel moderation in making new commit ments. Untrfed companies without known n1anaxement. should be avoid ed. An enormous amount of worth less oil stocks has undoubtedly been sold during the exciteme-4- While published reports 'resurdlng early St Paul dividend payments nave not been enoouraesssy. 1t should not be forrotten knat this company has powerful backing. c splendid territory to serve and with. large crops to pro- vide better earnings we believe 1t will "coms back much sooner than is generally expected. Labor condf- fions throughout the world are ex- pected to be stabilized as never be- fore by the plans worked out A. the Peace Conference, and while un- employment still exists in industrial centers. scarcity prevails in the agrt- cultural sections of the country. Rates for call money advanced dur ing the week, but the high figures represented belated brokerage loans. There afe no irldications of money scarcity at the present time. Read 1ustments may cause small fiurries from time to time when tho banks may endeavor to check speculative