The Bridgeport times and evening farmer., 1919-08-05
HENRY CLEWS'
 WEEKLY LETTER
Security Values and Money.

The cautiOnary attitude assumed in these advices for the past three weeks has been amply justified by recent events. Values have been considerably unsettled and fell sev- eraI points. Runners that the Fed era1 Reserve Bank would take steps toward restricting speculation aided the decline; fear of such action hay ing quite much effect as the actu- aIity would probably have done. As g. result speculative ardor on the bull side was materially 1essened, and liquidation on a larger scale than for several weeks followed. There was really no change in the general situa- ton to cause the decline, except that in face of such rigid monetary nmi- tations 1t was unsafe to push the ad- vance further at this time. While the technical position Of the market has been somewhat improved by the liquidation, still there is as yet no real foundation for reeumfng the rise-
 Activity in Business.
 The country is just entering the period of greatest business activity; the harvest has begun in earnest, and funds will be in demand for moving the grain, fruit and cotton crop during the next three months at least. This harvest will prove an unusually profitable one for the agri- cultural districts in spite of yield falling somewhat below early ex- pectations. Western merchants and Eastern manufacturers alike will feel the consequent stimulus in a larger demand for all necessities and many luxuries. It must be remembered enterprise Is reviving; many new ventures are starting; old concerns are enlarging or improving their plant; houses and office buildings are being started on a growing scale; almost overnight we have become the second maritime power in the world Ga fact far from being properly ap- preciated); our export trade is growing at a fabulous rate, and our iron trade has scarcely had time to shift from a war basis to a peace basis before it finds itself taxed to meet oncoming orders for both do- mestic and foreign trade. Demands for shipbuilding, automobiles, con struction, engineering and export trade are already taking 80 per cent. Of the steel output, and will soon re- qIire more. As yet the railroads have not purchased supplies with any freedom. and their demands for rolling stock and other equipment will prove enormous owing to the urgent need of replenishing after prolonged war strain, also a period of enforced depreciation and starved improvements. Should the status of the railroads be fully restored as to earnings, capacity and credit, a great development may be looked for in this important industry, which owing to uhwise legislation and harsh con- trol has made little no progress in a decade. The railroad system of the United States was probably never so far behind in public efficiency as at present; and for this condition the country has to thank unintelligent and unjust representatives who pre- ferred catering to public prejudice rather than public convenience.
 Giving Credit to Europe.
 Renewed weakness in foreign ex- change impressed the financial com munity with the necessity for prompt action toward financing our export trade. The demand for American products is pressing from all parts of