The Bridgeport times and evening farmer., 1919-12-08
HENRY CLEWS'
 WEEKLY LETTER

~a H& E0 AHH HN @N
 The opening of Congress accom- panied by tha usual special message from the President and followed by the annual report of the Secretary of the Treasury has done very little to change the financial outlook during the past WoOk. Inasmuch as the President had nothing to say either on the railways, the Mexican situa- ton or the peace treaty. those who were hoping for light in some one of these directions have been oblig- ed to defer their expectations still further. While Congressional leaders have indicated that there will be no delay in pushing forward the railroad measure now pending, and while there is no reason to fear the shelV- ing of the question, so far as can be learned, the financial community would have been very much better pleased had there been some disposal of the matter by the President. Much the same may be said of the treaty of peace; and although the Mexican situation is still perhaps too uncer- tain to admit of any definite decision, the lack of knowledge as to White House policy has proved a hesitatins factor. All in all, there has been lit tie ehcoura cement from the stand point of national action
 Industrial Outlook Unsettled.
 Relatively little help has been re- ceived by the market by the news concerning the coal strike, which still hangs fire. Production of coal has been reduced to 40 per cent. to 50 per cent. of normal and this shortage has led to the reinstitution of coal restrictions, with corresponding Hmi- tation upon industry in many direc- tions. Business conditions through out the country up to the close of November were favorable, the Fed eral Reserve Board stating the ac- tivity of trade as usual, while manu- featuring and transportation have, on the whole, been well occupied. New ertheless the continuous rise of prices and the difficulties connected there with seem to be pointing to a re- duction in buying power, which may produce lessened activity in both manufacturing and retailing. This, coupled with the uncertainties con- corning the foreign trade situation, have created an atmosphere of un- certainty in business circles which extended to the financial community and has operated to restrict greater recovery in price.
 Continued Money Stringency.
 Rates for call money have reached a very much lower level; the indica- tion, so far as it goes, is a good one but should not be mistaken. It has been well understood that any undue activity on the part of borrowers in terested in speculative operations in securities would be followed by an immediate advance in rates. There is therefore nothing in the situation to alter the opinions already express ed in this circular concerning the scarcity and costs of call money to be expected for some time to come. The declining reserve percentage of the Federal reserve system which was reported on Nov. 30 as little more than 45 per cent, has again called attention to the fact that the available resources of the Federal Reserve system are on a decidedly lower basis than heretofore and in stead of recovering under the inh- ence of the contra ction policy have apparently grown weaker. This de- cline in reserves may be explained in various ways, but the fact remains that it is present and that no expla- nation is sufficient to alter the fact that the available funds to be had on rediscount paper are steadily 
 Exchange and Credit Situation.
 Events of the week have, if any thing, deepened the uncertainty about the foreign credit and foreign ex- -I, Secretary of the Treasury in a report to Congress, made public Dec. 3, re- iterates the view already expressed by the Federal Reserve Board on var ious occasions, that government sup port for foreign credits to be placed in this country is not necessary and that it is better to leave the situation to be dealt with to private initiative. This position has been explained at length in the Federal Reserve BuIle- tin from time to time and need not have aroused surprise. The definite acceptance of the doctrine by the Secretary of the Treasury, however, undoubtedly had discouraging eff ect on market conditions, coupled as was with the failure of the Presi- ,ent at the opening of Congress to bke any action with respect to the ntifcation of the treaty of peace. Te are hus left without any foreign plicy as respects economic and fl anciaI matters, just as we are left fc- the time without any such policy reardiug political affairs. It was to be expected that the immediate re- sut of this position was to be a de c1ie in the value of foreign cur rer;y. Sterling, which may be taken as representative of the entire for eigl situation, touched a low figure of 3S4 on Dec. 3. British import figules during the week show a grat- flying growth in the ability of Eng landto export and thus hold out en- courgement to those who look for an e;rly recovery of a sound hnan- ciaI psition. The hostility exhibited in Congress- toward the plan of re- lieVing foreign countries of the inter est of heir debt to the United States for a period of three years may not result n blocking the proposal, but has exrted a discouraging influence in common with other factors of de- pressioI
 Market Conditions.
 In sp1e of depressing factors of one kindor another which have thus been opeatfve during the week the past few lays, have been a period of decided recovery in stock values. Op-