The Bridgeport times and evening farmer., 1919-07-15
I. |. WATSON'S
 WEEKLY LETTER

Crowded with events. the week just strength in the stock market, despite the handicap of high money rates. Constructive factors continue to in spire bullish interest in the indus trial list, and 1t will be difficult to hold it in check. Until the general outlook clears a little, however, 1t may be the part of wisdom to restrict purchases to recessions, and accept fair returns on advances As we see 1t, there is nothing in the situation to prohibit speciality bullish operations, and soIpe of these stocks may be found working toward higher levels during the summer. The vacation season usually takes large operators away from the Street and makes for restricted markets
 Tho international situation has forged 10 the front with the ratidca- ton of the peace treaty by the Ger mans coincident with the return of President Wilson and his submission of that document and the League of Nations revised Covenant to the
 United States Senate. The economic
 blockade against Germany ceased
 "lAll lIic IdAlllCtillOI ol l1S lTbdly Dy the German Assembly, but 1t is stated that the greatest hindrance to iIn-
 mediate resumption of trading is the scarcity of ships, many of which are being used for returning American troops and materials. Washington is putting surplus war supplies on the market. Germany is understood to be
 making preparations for vigorous trade war. It is already under bidding English steel concerns. It is noteworthy that T3olshevism Is rapid ly dying out, following the signing of the Allied terms by the German peace delegation, something that would seem to confi<m reports that German inspiration has been behind this danger.
 The Federal Reserve Board has pointed out that a great volume of business just ahead must be financed ard inttmates that at the same time large speculation cannot be taken care of by the money market. Con tinuance of high money rates is re- ferred to as evidence of tflis> condi- tion. In addition to lending money for foreign reconstruction work and domestic production, tAe crops must be taken care of, as well as prob able railroad financing later or. So
 that the banking interests will have ample use for idle money" The Federal Reserve Bank of New York
 earned about 50 per cent. for the six
 months ended June 30.
 Investment inspiration is reinvig- orated by the publication of the splendid Government grain crop re- port. indicating a total wheat yield
 of over HOO, 100000 bushels, and a
 corn crop prospect suggesting 2,So0,-
 100000 bushels-all at high prices The monthly unified tonnage state
 ment of the U. s. Steel Corporation showing an increase of over S0O,00o tons, was a surprisingly favorable re- port. It is understood that the quar- , teTly earnings statement to be pub hshed July 29 will show a gradual improvement since tho first of the year. President Farrell of the cor DorauoE predicts prosperity for the steel trade.
 Solution of the railroad problem { is expected to be hastened by the Presidents return. The immediate need Is believed to be higher freight rates and a return to private opera tion with Government income guar antee for a specified period of time. Reports are persistent to the effec. ! that a crisis Is approaching in the Mexican situation, whereby the Unit i cd States may take action to protect ! foreign interests in Mexico. This | would benefit corporations in the oil and sintng business located in that republic. Copper metal continues | to reflect strong undertone, and | authorities are quoted as saying that | were the SUI plus now inventoried at l present level of 20 cents a pound, a i profit would be shown. American i coal is now reported to be the cheap : est in the world. United Retail Stores s-Gock is expected to be listed on the l N. Y. Stock Exchange soon. The ] 'Drys" are pushing prohibition en- forcement in Congress- The transfer of the N. Y. Curb Market into part of lSthe ". Y. Stock Exchange Building I Is being discussed