The Bridgeport times and evening farmer., 1919-07-24

export balance on credit for the next 12 months. To this demand must be added the requirements of the Treas ury, figured at about S5,OOO,O0O,OOO. Then comes the financing of an active home trade at high prices, as well as the provision of new capital for home enterprises. which is sure to be very much larger than in any year Of our history. Can and how will our money market meet all of these de- mands, which though not immediate are sure to make themselves strongly felt in the not very distant future? The financing of our export trade has been one of the most important problems requiring solution. Signing of the Peace Treaty; removal of the embargo on Germany, and lowering of fre!ghts and a better supply of tonnage have also been important factors in the present crisis. If the fall in exchange continues it will have the inevitable effect of lessening for eign buying power and thus working against our export trade. Already cnsioderable foreign orders have | been held back owing 10 the weakness in sterling, which indirectly will ex- ert a restraining effect upon com modity prices here
 Stock Market Conditions
 Conflicting circumstances control the stock market and keep it in an extremely active though unsettled state. The strength of the under 1 tone seems undiminished, and the ! buying power also. Chief of stimu- 1 lants are the great prosperity of the | agricultural sections and conse- | quent good outlook In the industrial world. Our export tlade is sure to i be enormous, despite the accompany | ing difficulty of giving Europe suf- | fcient credit. The railroad outlook | is improving owing to the better | trac prospects, to the probability i that they will secure reasonably fair 1 treatment from Congress, that when ! returned to their owners some form 1 of compensation for war 1os..7 will | be permitted, and that rates Fay be | advanced sufficiently to at least part l ly compensate for the great increase | in operating costs imposed by higher wages anld materials. Public utilities | also have a better outlook for similar reasons. which arch etter Urea tment | by public authorities and permission 1 to fairly offset increased costs by i adequate rates for service. The dis i cussions on the peace treaty at Wash ington have little effect; being deem-
 
 to the point is that the world is now
 on a peace basis, and active pro- | duction has taken the place of five | years of intense destruction That is
 the one great hopeful fact, and all
 other problems are chiefly those of , adjustment. These may be temper
 arily disquieting, but in the long run
 they mean better times ahead. On
 the unsettling side of the stock
 market are the prospective starin
 upon the money mar,Xe, the weak
 ness of exchange and the increasing
 frequenc,y of strikes. The high in-
 iation of credit and commodities is
 also a. matter receiving more atten-
 ton in banking circles. These are all
 incidents natural to the reconstruc-
 ton era in which we are now running
 full tide. There is no reason for loss
 of confidence, though there Is reason
 for conservatism and increasing dis
 crimination in all financial transac-
 tions. Sixty leading stocks averag5
 about 10 points higher than a year
 ago, a very low advance compared
 with the rise in commodities ant
 wages. But in this group thirty in
 dustrfals showed a gain of 50 points
 while twenty railroads advanced ar | average of only 5 points. The greates need of discrimination, however, is il
 some of the industrials. The chances favor a better market later on, witf . more or less liquidation in the inter
 val.
 Question asked, what has becom | of the people who used to drive GU
 with the lazy old nag to enjoy tn