The Bridgeport times and evening farmer., 1919-06-11
I. |. WATSON'S
 WEEKLY LETTER

A tendency to more carefully weigh developments in the stock market has followed extensive waves Of profit-taking. It is evident that there is desire to see how digestion of the advanced level is progressing. But there Is a confident tone to speculate i've investment sentiment, and dsposi- tion to take advantage of decisive re- actions and buy standard issues, especially food stocks and the rails which represent properties that have been displaying good earning power and that have investment equities they may be required to sell when the reconstruction plan is put into execution Conservatism is present to a degree greater than for some time past. The return of operating control of the wire systems to owners leads to hope of early action of sirni- lar kind for the railroads.
 The view is taken that there is so much financing to be done that bank ing policy may we'll be to foster a cheerful atmosphere in financial and market circles even while checking speculative excesses. It is not to be overlooked, furthermore, that invest ment demand is usually stimulated about the middle of the year by large disbursements of dividends and i'm terest, which naturally seek re-em- ployment or reinvsstment in securi- ties Buying of securities often takes place a week or more ahead of the payments referred to, and 1t Ire quently forms an important support ing factor in the general market.
 Money furries halted speculative bullish activities in some departments of the market more than other fea- tures They are probably to some extent voluntary and artificial. and for the laudable purpose of curbing runaway tendencies. Present ind1ca- tions do not conclusively suggest that money is scarce with so many large industries operating at half capacity, imitation still under way, per capita circulation larger than ever before and the period of foreign loan ex- mansion still ahead. There is no doubt that the credit and labor situa- tions form the most important basic problems confronting the United States and the world, and MT. Van derIip, in a later speech, following his resignation as president of the Ma tional City Bank, alluded very wisely to the magnitude of the labor ques- ton.
 The great sustaining power under the market IS impressive dDbOrPlioh, constantly appearing from many and new sources. It is enlarging the vol ume of transactions in a natural way, and makes for unusual strength. with unyielding qualities displayed on re- cessions The world shortage of goods, large crops a great demand for many luxuries as we'll as necessi- sias, are apparently arousing the speculative instinct in places never before expressing it, and the market for securities is being made the ve- hicle of a desire for quick profits to make up war losses.
 Firmress in the copper metal market has stimulated the share list. Regional Director A. H. Smith has left the government service and re- turned to the presidency of the New York Central. The governments loss will be the railroads gain. Mir. Smith will have no divided interest to serve now. Large orders for steel have been placed by the automobile in- S---ery. which is understood to be < out in leading compAnies to next ia I. An investigation into the street railway situation is to be conAunt4d by Warrington soon. II 1s.hoGo1 {z1at 3e1iek measures VIII bo ta16n <oDoetp IGG 6oe4 buyins q m fn1 r
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