The Bridgeport times and evening farmer., 1919-11-18
IL. WATSON'S
 WEEKLY LETTER

Widespread liquidation in the stock market during the week has improv- ed its technical position. It has also automatically bettered the money sit uation. While readjustment in the industrial list may have to go further, 1t is noteworthy that underlying strength is displayed by standard railroad stocks- We called attention last week to the fact that deprived of adequate money supplies bull cam paign could no more be conducted than could a battle of war be carried on without ammunition. Until the supply of 1oanable funds is more plentiful sharp advances in the indus trial list due to technical causes are not expected to hold except in some of the spacialties where particular reasons exist for and justify better ment. During the advance in the call money rate to 30 per cent. on Wednesday declines in the stock mar ket were from ten to nearly seventy points, a range that has never been exceeded in a days trading on the Stock Exchange except during the Northern Pacific corner. A new rec ord was also established at the close of the market when quotations con- tinued to come out on the tape forty
 
 All reckless speculation has not been confined to the stock market. Much of it has been going on in the promoting field, where methods en- ployed have not been entirely in ac- cord with sound business principles. to say the least. There has also been a great deal of speculation in com Alodities, farms, etc. All this has brought about a condition of indi- gestion, which must be removed be- fore the various markets can function rationally again. With huge neces- sities for credits from abroad press ing for accommodation 1t Is difficult to say at this time just how soon the stock market as a whole will be able to digest the feast and recover from general over-indulgence. Meantime, the active investor will pursue a con- servative course, holding fast to those things which are "tried and true'' rather than running after "false
 gods,'' to paraphrase biblical warn ings.
 To those who believe in conserva- tive methods and sound business the action of the Governors of the New
 York Stock Exchange quoted below is both timely and wise: "Resolved- that in the opinion of the Governing Committee when a syndicate is form ed to purchase or underwrite securi- ties to an amount stated in the in vitations to subscribe thereto it is not | consistent with just and equitable principles of trade for the manager
 or managers of such syndicate to all lot participations therein to an
 amount in excess of the amount speci- fled in the invitations to subscribe unless all subscribers consent to such al1otment
 The most important general devel- oprnent that occurred during the | week outside of the money stringency was the calling off of the great coal | strike in accord with the mandate of the United States Court The an- nouncement of the leader of the | miners that they were Americans and could not fight their Government was unconditional surrender in the right spirit, which should promote a fair adjustment of differences with the
 owners at the meeting called by the Government. Officers of the railway brotherhoods have been holding con 1 ferences with Director Hines on the subject of higher wages, and it is ex- pected that some sort of compromise | will be reached.
 We are glad to see that men of | the high standing and business, abil- i ity of Messrs. Alfred Skitt, W. A. Day, A. w. lSrech and others have | been selected to protect the interests of the Manhattan Ky. and it's stock holders. It is stated that the com mittee does not deem 1t necessary at 1 present to call for a deposit of stock. The strength shown by the stock of | the American Smelling & Ref. Co., | during the decline in the market is l ascribed in part to the silver interests l of the company, the price of that
 metal continuing to advance to new high prices. The company has large surplus to carry it through dull busi- l ness MT. George J. Wha1en is i quoted as being extremely optimistic i over the business outlook. Copper 1 metal displays a declining tendency, l but the early consummation of peace may reflect active buying.