The Bridgeport times and evening farmer., 1919-11-24
HENRY CLEMS'
 WEEKLY LETTER


 The failurs eR Congress to come t2
 an agreement with respect to the
 Treaty with Germany is the outstand-
 ing event of broad general import
 ance during the past week. were II
 not for the general confidence that 1t
 is only a discouraging prelude to
 some agreement which will carry the
 Treaty through to ratification before
 January 1, it would be of much great
 CT significance even than it seems.
 As things stand, however, the situa- ton is bad enough, since this inacuon postpones the time when definite
 adjustment of our foreign affairs can be arrived at and when foreign financing can be seriously considered The stock market has largely dis counted the Treaty outcome during the past week or more, although there were many who hoped against hope up to the last that compro- mise would be arrived at. Now that it has not been reached sober thought is undoubtedly aroused even among those who have been inclined to deal with the document as a pawn in the political game. It is understood that some adjustment must be worked out at an early date if our foreign rela- tions are not to suffer in an economic and financial way, to say nothing to broader statesmenlike considerations. Publin opinion demands positive action on the Treaty, and, strange as it may seem, the outcome in Con gress has confirmed the belief of many in an eventual compromise at no distant date.
 Continued Liquidation.
 Practically continuous liquidation proceeded throughout the week and as a result many of the industrial shares reached relatively low levels of value, even dropping below those ! which were recorded in the semi panic Of last week. As was to be ex- pected railroad stocks sympathized to a very small extent in the severe de- cline which the industrial shares suf- fered, the reason for this of course l being that the wild speculation which has been going on for the last several | months was confined almost entirely to the latter, while the shares of the railroad companies have remain ei at a standstiH.
 1 Southern Pacific however, was an e1,ception, due to the unfavorab1e de- cision of the Supreme Court in the | oil land case involving the right to | 6,100 acres of land in the Elk Hills district, California. While the de cisfon was, of course, a great victory for the Government, this particular l case is not regarded as so important 1 as the other land suit of the Govern ment against the company involving 1926 900 acres of oil lands which have been valued as high as S150, 0,000,000, i to which it is believed the company I has a good title. This has already I been sustained by the United States District Court and it is presumed that 1 it will also be the court of last resort. With respect to the stock market | 1t is realized that the shrinkage has l been exceedingly severe and this in I consequence has brought many stocks 1 down to levels which will make them l inviting to people who can afford to
 put them away until there is a return 1 to normal conditions. Evidence has 1 not been lacking of buying of this l sort, although it is safe to assume 1 that a part of the rally which ensued | at the close of the week was largely | due to the retirement of short com 1 mitments.
 | Recent liquidation has benefited the l banking situation, but not sufficiently l so to encourage the belief that the
 banking authorities will countenance
 anything like another bull campaign
 for some time to come. This need not. 1 however, preclude the buying of 1 standard shares on such reactions as | may take place hereafter, but if 1 bought for speculative purposes ad- | vantage of the rallies should be taken | to sell.
 Tight and Dear Money.
 Throughout the week renewal rates 1 for call funds ranged from 8 to 12 | per cent, while at times the quoted l 4s~ l these figures. A disposition has been apparent on the part of bankers to i supervise their market advances very
 closely, and to prevent lines of credit | from becoming excessive. Any un-
 usual call for funds has brought an i almost immediate reaction to higher l levels for money, and the conse- quence has been that operators could rely upon only a relatively limited | supply of accomm odation. While it has been urged that on some days of declining prices and short money the difficulty was due to poor distribution
 rather than lack of accomm odation, it would appear that such faculty dis tribution was only minor influence i and that the more important effect l was exerted by the actual disposition of the banks to limit their advances. l The, reserve percentage of the Fed
 eral Reserve system as reported at the
 beginning of the week was slightly
 higher than that of the week earlier.
 while the percentage of the Federal
 Reserve Bank of New York rose
 more than 2 per cent. This inn
 provement was meager when the ef-
 fort Of the preceding week to reduce
 the loan account is considered, and accordingly the report instead of serv- ing to relax the effort to curtail loans has probably increased it. Higher rates in foreign countries have par alleled our own advance in rediscouni rates while the increased charge for | call money has been reflected in 8 WANTED TO BUY. D I2 c,IrCY ErI1R NLIrEIIR E CD na1rs