The Bridgeport times and evening farmer., 1919-05-27

the ten months of the fiscal year eX-
 ports were s5,7O5, 5,000,000. an in
 crease of 100000 over 1918, and
 imports reached only 4,000,0OO,
 an increase of S112, 2,0OO,00O. These figures left an excess of exports for the ten months of S3,231, 900, 900, against s2,531, 100000 last year. No wonder the exchange market is de- moralized. Such abnormal conditions require unusual precautionary treat ment. Foreign indebtedness is grow ing at a tremendous rate; and, if in order to place Europe upon its feet, [ further credits are to be granted, they must be placed under the control of skilled banking experts. Fortunately our government has shut down upca giving foreign credits, and applicants are now coming to domestic bankers who are better judges than any gov ernment officials. Europe needs and must have the food and raw materials which we have to spare; and the soundest way of securing payment is { to encourage industrial rehabilitation, i so that we may receive payment in | commodities rather than in instru-
 ments of credit, which only postpone 1 settlement.
 | Monetary Conditions.
 l Somewhat easier conditions at present exist in the money market, | owing mainly to a favorable bankEe< ! position and relief of pressure incl dental to floating of the Liberty loan. 1 The government, however, is by no
 means out of the money market. Fed
 eraI expenses continue upon enor- ! nous scale and there is little indfca- l ton of early retrenchment. Heavy ] taxes and continuous borrowing in the 1 form of short term Treasury certifi- | cates are expected for anther year, at | least. This means heavy demands upon the banks. To pressure from 1 this quarter must be added the prob ability of great industrial and busi- ' ness activity. Our crops will require | very unusual sums for their handling. New enterprises and urgent foreign ! borrowing will also have to be satis- , fled. When all these unprecedente ted ! and extraordinary requirements are 1 considered, also that price imitation diminishes banking power. it will be recognized that easy money is not 1 likely to be permanent and that later
 on funds will command good rates
 and may be less abundant than now. | A Brilliant Future.
 ! Despite somewhat lessened activity, | Stock Exchange transactions continue | largely in excess of a million shares
 
 rumors arising from delay in a peace settlement with Germany, the buying movement hesitated. and more or less profit-taking followed. Liquidation, | however, was confined to a few spec | ialties among the industrials, in which | speculation has been upon a heavy scale. Oils and shipping issues suf-
 fered the most severely. Whether the ! reaction has run it's course or not. | remains to be seen, and the selling | movement has not thus far developed
 any intrinsic weakness. As a rule
 stocks are held with much confidence. ! Among the recent buyers are a num- Der of wealthy individuals in the
 west, who tenaciously hold very opti- mistic opinions regarding the future. These stubbornly decline to be fright
 ened out of their newly acquired hold ! ings. A not inconsiderable number of 1 strong buyers also refuse to sell be- 1 cause unwilling to turn over so large | a portion of their profits to the Fed
 holding such securities from the
 market naturally increases it's general
 strength, though creating a new ele- ment of uncertainty. That the market | shows an astonishingly strong under l tone is beyond dispute. Nothing like | 1t has been seen in a generation. We | are truly in a period of extraordinary ] cor ditions. which produce corre- iding actions and reactions. After u. violent crises and depressions caus- ed by war. peace inevitably brings new hopes e well as vigorous and some- times unrpasontng optimism. In this country which has lost least and pros 41AA &n h thA ua< extrennea a< ILL