The Bridgeport times and evening farmer., 1919-10-14
HENRY CLEWS'
 WEEKLY LETTER

Measuring developments in Great Britain looking to the eventual ad- iustment of the strike situation have led not Q few observers to feel dur ing the past week that turn in the tide had come and that the labor un- rest which has been spreading over the world like an epidemic might be somewhat checked. Coinciding with this favorable outlook has been the better news with respect to the rati- fication of the peace treaty by France.
 The treaty clearly will soon go into effect, and this alone should do much to stabilize financial and investment conditions all over the world. As usual, it is anxiety and uncertainty that most seriously iniure industrial and financial prospects and that most certainly retard progress
 The action of the Senate in holding up the ratification of the treaty has undoubtedly been the responsible cause of delay in many other coun- tries and has cost tho world enor- nous sums in the way of reduced production and lowered volume of business activity. Whether there has been any aspect of the delay which
 
 still uncertain.
 Need of Action on the Treaty.
 Early action or the peace treaty by the Senate will also do much to ia cilitate domestic prosperity and to adjust local financial troubles. At this writing 1t Is as yet uncertain what the position of the Senate will be or what the reservations actually to be adopted may amount to. That they will not hopelessly vitiate the whole document is the earnest and evident desire of the business community. It is already apparent, that as the Presi- dent has pointed out, unless we are prepared to take our place in the world under some kind of treaty agreement, other nations will with out doubt gain the advantage They will take to themselves trade which would otherwise go to American in stituttons were these prepared to undertake the business of supplying international demand as they could and would do if protected by the guarantees of the international agree nenG
 The approach of an early vote, on this document Is consequently as suming the proportions of an event of first class financial importance; and it's further postponement beyond the earliest possible moment of action could be regarded in no other light than as a disaster this entirely apart from what may be thought of the agreement in detail.
 Foreign Trade and Exchange.
 The fact that no definite action on the exchange situation seems to be in sight is now pretty well admitted throughout the financial world; and the discouraging phase of 1t is that our foreign trade is already begin ming to feel the effects of this kind of 'protection" against American goods; for that is what 1t amounts to. Undoubtedly there is an almost un- limited demand for our goods abroad, but the difficulty which Europe feels in paying for them, as evidenced and measured by the depreciation of her currencies in terms of ours. tends to prevent desirable sales which would l otherwise occur. While our trade balance continues large, it appears that the movement of goods to the Oriental countries and to South America is tending to be aided by the more favorable exchange situa- tion existing there, while trade with Europe in like manner tends to be ! impeded.
 Europe's intense needs, of course, make it necessary that she should i buy far more heavily than under or ! dinary conditions would be deemed i wise, no matter what the rate of ex- l change. American industries which are largely dependent upon export l trade must, however, take account of 1 the exchange situation, and their earninas ol1tlnak paust F>A s~>>> =