The Bridgeport times and evening farmer., 1919-08-18
I. |. WATS0N'S
 WEEKLY LETTER

Prudence should be exercised at all
 times in the making of investments, and in periods of uncertainty more
 caution is required. We are having
 so many disturbing elements just now
 that it is well to go slow both with
 investments and speculation. Liquid
 assets are most desirable, and when
 sharp declines take place in securities
 they can be used to advantage. Un-
 til the living cost problem is settled, a workable plan evolved for public
 utilities, and money affairs clear up,
 the stock market may not be able to
 make much headway. On the op-
 timistic side, one large buyer of stocks
 says: People who have faith in the
 United States and it's people are buy ing stocks and are not being guided
 by sensational newspaper headlines ''
 ''The problem of providing a sound
 remedy for the present extraordinary
 situation in international exchange is in reality one that will require the
 most careful thought and handling" |"
 says the Mechanics and Metals Ma tional Bank ''The task we face is
 two-fold. We must see that exchange
 rates, at whatever level. are kept re-
 bly, stabilized at that level, so
 that exporters and importers will know on what to base their calcula-
 tions. We must extend credit, fully
 enough to offset the trade balances.
 But in stabilizing rates, and in ex-
 tending credit, we must be careful to
 keep clearly before our minds the distinction between the influences that are at work-the influences, that is, of trade balances and of currency de- preciation. We must seek to offset
 the effect of the extreme trade bal ances. But we would seriously err ! if we should attempt to correct that part of the exchange rate disparities that comes solely from depreciated currencies."
 The railroad administration an nounces that it will make no large purchases of materials at present | Daylight saving seems to us a good 1 proposition, for 1t wiA tend to in crease production as well as econom- ! ize light. The Governments cam paign against the high cost of living 1 is in swing. Uncertainty as to where | prosecutions may strike or lead tc | inspire market conservatism in stocks | of the food companies. The Fedora | Reserve Board says work and saving | is the only remedy for the present 1 economic situation. Agitation for re. peal of the excess profits tax i: | spreading. Railroad" shopmen who I have been striking are returning tc | work pending Washingtcn's decision | as to wages.
 The United States Senate is mak- l ing progress toward a decision as tc | the Peace Treaty and League of Ma | tions. It is now stated by the Wal | Department that the American armJ will be dem obilized by October 3i when wartime prohibition would au- ! tomatically cease on Presidential | proclamation. U. s. Steel earnings | are expected to improve in the third | quarter of this year. and good buy. | ing is said to be found on declines
 in its stock. The National Associa- | ton of Manufac cturers declares tho | Plumb Plan for railroad reconstruc- ] ton means Soviet control, and ask: | for a law to prevent railroad strikes | The U. g. Chamber of Cornmer cree saws
 the Plumb Plan would monopolize and | deaden rather than democratize anC
 revive railroad transportation inter | ests.