The Bridgeport times and evening farmer., 1919-05-14
I. |. WATSON'S
 WEEKLY LETTER

Encouraged by the appearance of additional features of favorable char acter, interest and activity in the stock market has been stimulated anew, and the prospect of further eN- pansion into other groups of securl- ties seems to be good. Bulhsh opera tions have proved profitable in many departments and the public appetite has been thereby whetted to enter new fields. The outlook continues to favor the market policy of seeking buying opportunities in sound issues during moderate recessions. especially lin classes of securities which have not been prominent in the rise, put where attractions exist
 Publication of the official terms of the peace treaty as arranged by the Allies and given to Germany, prom ising destruction of the German mll- itary power and providing reparation' holding out a prospect of prolonged peace and possible ultimate dtsarnla- Iment. is a factor that no investor can afford to ignore. Realization of such a condition means that the world will lcoucentrate on peaceful pursuits and reproductive industry as never before, making investment more stable than at any time in the past, and assuring a fair return for both capital and la bor in the years to come
 l Next in importance to the American | Investment world is the fact that Congress has been called to meet week from Monday, not only to rattfy the peace treaty, but to take prompt action in the direction of solving the
 pressing railroad problem and to
 adopt measures looking toward has | tening business readjustment from war to peace. This outlook suggests that more bul1ish attention should be given to the better class of railroad stocks, such as Southern Pacific, Reading, Union Pacific, Atchison, Great Northern preferred, Northern Pacific, New York Central, Norfolk & lWestern. Chesapeake & Ohio and Southern Railway preferred.
 Latest developments in connection
 with the steel situation encourages the belief that readjustments will soon
 rbe complete in that industry with
 new revisions arranged. United
 States Steel, Republic Steel and some
 of the minor steel company stocks
 have been taking recognition of pend
 ing changes which are expected to
 increase the volume of business. In considering the metal situation, it | may De e5IaIeu LuSl llleTe IS d DeIlGI demand for copper.
 It should not be overlooked that
 with the placing of the Victory Loan,
 Governnent war financing will have
 passed its urgency, and funds will be
 available for recoustrUctive business
 all over the world,
 Referring to the effect of foreign financing, the Mechanics & Metals iNationaI P9Al1 of New York says: T,
 the in+e-sst rate, it must not be over
 1oolzaS that this also means much in = lits 1road ultimate influence on the ? lTr.Ited States. It was a common ' Lptnion eadly in the war that the
 worlds money, spent here for
 war supplies, would remain largely
 concentrated in our markets, for Americans had not been educated to foreign investments. The opinion is completely changed. In the United
 States a rapid expansion not only of national but international credit has , been made possible by the spectac-
 ular development Of our resources and facilities. The United States to- day occupies the position of the strongest of the worlds financial : powers"
 Improvement in the Mexican situa- ton would better the position of Mex
 iCah ol slockS. Buying of oil issues : or the Ranger field has continued ac-
 llVe. It Is rumored that a consoIida- ' ton of Galena Signal Oil and Hous-
 ton Oil is maturing. Strength in Aetna Explosives is based on an early
 endhng of the receivership on a favor
 able basis. Shipping shares are re-
 ported well bought. Absorption of
 snelting stocks has been stimulated ! by the rise in the price of silver.
 which has also caused short covering
 in some of the coppers Railway
 equipment and food securities are in sI good demand.
 And why have you never mar
 rig