The Bridgeport times and evening farmer., 1919-02-24
terest from which would more than

terest from which would more than provide for the interest on our nc -es.
 The prospects for the new finan ing are improving and the general drift of affairs is toward recognition of the high value of loanable funds. The greatest danger in the situation is that under the new financial plans an un- due amount of the forthcoming loan may be left in the hands of the banks. Purely as a market factor this might not be regarded with aversion, as the effect of 1t will doubtless be to keep prices up and stimulate activity, there by deferring for the time being the inevitable reaction resulting from re- adjustment. However these matters may go, those who have 1oanab1e funds can reasonably look forward to during the few months whether they invest in public securities or in issues that yield a larger rate of return.
 The readjustment process has nov ed steadily forward. It must be ad- mitted that some of the problems growing out of it have not as yet pass ed their climax. Unemployment has increased in various quarters and in some lines demand is still dull. with no assure prospect of revival. Food stuffs have shown a distinct downward
 
 prices before the conclusion of the armistice, although they are by no means back to pre-war levels and not likely to go there. Wholesale prices xOT various manufactured goods as well as for the basic materials, to which reference has already been made, have been revised in a number of cases, prominent among them textiles, build ing materials and several others These sr-I@ l. plete or permanent until labor condt- tiOns have l. ore nearly settled them selves. Such a settlement would be deferred through the maintenance of high retail prices, sellers naturally de- sirinE to get rid of their present ocks at remuneratiYe rates. Eventually, however, the advantage of wholesale reductions must be transferred to the consumer and organization be rem dered cOrrespondingly more thorough. Sauerbeck's index number, showing g changes in prices up to the end of Jan uary, indicates a decline of about 5-3 points from the corresponding date a month earlier, being 19O, against 196 in December. A factor in readjustm ent is the approaching change in the con trOl of Congress and the transfer of power over legislation to hands less radical than those which framed the present revenue law. As regards the revenue law itself, it would seem that business houses have made more pre- paration than some had thought to meet the new conditions. a fact which in itself Is highly encouraging.
 One feature of the past weeks op- erations which is variously interpreted is the resumption of the growth in the outstanding volume of Federal reserve notes and of discounts at Federal re- serve banks This is partly due to the continued demand brought to bear by the Treasury upon the banks for short term aCcomm dalton, but 1t is also in part due to a larger volume of busi- ness which accordingly calls for the use of more funds in actually exchang- ing goods, for in spite of the unen- ployment and anxiety growing out of it retail trade Is still [ nerally reported as very satisfactory
 On the whole the past week has shown decided progress toward the new. and it Is to be hoped normal, condition of things. and while there Is sdn much to be done there are many who think that the turn of the tide is in sight if not actually here. The stock market with its keen percep- tions evidently believes so and is aI- ready discounting the better outlook.