The Bridgeport times and evening farmer., 1919-02-24
HENRY CLEWS'
 WEEKLY LETTER


 during the past week has given prom ise of definite recovery from the de- pressing conditions that have been oyerhanging the industrial situation since the conclusion of the armistice -ith Germany. At several sessions cry pronounced advances in prices accompanied by heavy trading was characteristic almost throughout the list. The country as a whole clearly recognizes the unique position of strength which the nation occupies at the present time and evidently re- fuses to believe that anything like 8 continued depression can prevail One good evidence of this state of things . was furnished by the large wire or ders" of the past week and the ap- parent interest taken by bona tide in vestors in good stocks. There has been a very considerable accuTp ulatiOn of money since the beginning of the year. Some of 1t has been used to pay off obligations based on Liberty Bonds, but a great deal more has been held idle awaiting the arrival of satis- factory investment levels in the mar ket Not @ few such holders have become tired of waiting for prices to go down further and have registered their belief that the problems of the United States will be met and over come in the right way. Other inves- tors are likely to follow their example, and will be wise in so doing, assuming g fair judgment in buying.
 The general temper of Congress as it draws near March Is on the whole conservative, and such action as has been taken of late has been encourag- ing. Certainly 1t is the evident wish of all parties in Congress to see the United States pass safely through the present period of world readjustment without any serious shock to it's un- deriving social and economic struc- ture. This furnishes the underlying basis of the markets confidence-a feeling strengthened by the fact that affairs at the Peace Conference are evidently moving towards a harmon ious climax, regardless of the question how far the scheme for a League of Nations or other new plans agreed upon may in the future prove them selves feasible.
 The market of the week has been the outcome of many cross currents. Railway shares while generally strong have shown only fractional advances in most cases, but such losses as they have incurred in isolated instances have been promptly overcome. The i, other great group of shares-the in dustrials-have enjoyed what might
 
 boom. Not only U. s. Steel but other steel and metal issues have either held their own. or more generally scored some advance, a fact which is notable in view of the softening prices of steel, copper lead and other basic metals. Certain of the other fndustrials have done ever better. The attitude of the | government with respect to the fin- l ancing of new enterprises has been l foxvor-o nd 6izTNauIffoJ1 to the task of taking care of all ordin- ary foreign applications back into the hands of private financters has been more and more unreservedly accepted by public men. Nevertheless, as shown by Secretary Glass's request for authority to continue advances to Tor eign governments, as well as for pow CT in the War Finance Corporation to make loans in aid of foreign com merce, there Is an evident apprecta- ton of the desirability of keeping up such trade even at the cost of some public assistance. Demands of for } eign governments and peoples which , had been expected to fall upon the money market with great force by ] this time are still more or less delayed. ' There has been but little new develop ment n the directions indicated a week ago with reference to proposed
 
 theIess the export figures for January |. showing as they do a record months total aggregating $625, 900, 900, indi- cate the scope of Europe's continued , dependence upon the United States.
 There has been little change in the money market, but such alteration as . has taken place has been upward. The views of the Secretary of the Treasury . as to public finance at his conferences ] ho, ,1, E7oED IA and Is, were favorably received ana : were regarded by them as indicating a disposition to make reasonable rate! for the sale of the new bonds. Since that time there has developed in the . House of Representatives some dis - position to withhold the authority fol which the Secretary of the Treasur! n has asked and a compromise has beer 1 tentatively arranged, but the aIterna e tive proposals which are now put for e ward, however objectionable they ma. = ha from some standpoints nevertheless - recognize tho necessity of attractiv - rates if the loan is to be floated witt success. The new plan contemplate an authorization of s7,000, 100000 il . notes running l to 5 years and divfd II ed into four classes, as follows:
 II First-Exemption, except estate O - inheritance taxes.
 
 except estate or inheritance taxes an
 the graduated additional income taxes commonly known as surtaxes, and ex j. cess profits and war profits taxes. n Third-Exempt from the same tax l. ation as those of the second type, ex @ cept that the interest on $30,00O o IT bonds of this type shall not be sub @ ject to the estate and the graduate n additional income levies.
 1t Fourth-Exempt, except from es d tate or inheritance taxes, and all in e come, excess profits, and war profit IS taxes
 Is If the Department should announc
 that these short term notes were to - put out against loans made to for n eign governments, which now tote | ne2=!= 5000, 100000, and that the
 were to be taken up with funds re
 ceived in payment for these loans,
 would undoubtedly create very fav v, orable impression and would also hay = a stimulating effect on the prices fo I, outstanding Liberty Bonds, most c - which have long maturities. If tn
 notes are to be taken up by increase Fl taxation each year as they fall dut
 that would be undesirable, as the pee II +l,;. SJ,rP P11