Republican farmer., 1919-02-21
I. 1. WATSON'S
 WEEKLY LETTER

A speciality trading market appears to be in prospect for the present. Tie general security list is marking time, digesung developments, and awaiting incentive. Specific issues whose par ticular positions are sound and offer attractions to speculative activities, are expected to display strength. The readjustment does not seem to be over, however, and there may he some points of weakness not yet ap- parent. The investor will find it good policy to make selectiye purchases during recessions. confident that the outcome will be favorable Profes- sionals and pools control immediate fluctuations, which will probably be restricted The underlying condition is growing stronger, as we see it.
 In connection with the Notation of the next Liberty Loan, the enormous financing demands indicated by the Secretary of the Treasury at the pres ent time would seem to forecast 9 higher rate of interest than yet paid on Liberty Loan bonds, if their pro motion is to be successful. Certainly, it is not easy to float ten billion of bo..ds as it is to place five billion: an& therefore, like the Ii n whose credit has been somewhat stretched, higher charges for additional borrow ings are Q reasonable anticipation.
 The arrogant attitude of the Ger nan IeG Iers pending the formulation of peace terms is something that makes us sincerely regret that the powers in command did not see fit to decline an armistice until uncOndi- rfonal surrender Was obtained. Orcu-
 pancy of Berlin might have altered present conditions very materially
 and would probably have been @ hard
 blow for Bolshevis1n. We cannot but corlmend vigorous measures taken 10 stamp out BoIshevism in this country. If taken at it's inception a destructive element of this character is easily handled. but if permitted 10 spread it's vicious doctrines. the ignorant form
 erroneous opinions difficult to change. Regulars of the American Army seem
 to be handling the matter effectively in the northwest, and Geu1rtaGon of this dangerous alien element that has
 been injecting poison into United States labor cannot be too prompt
 The metal situation. both as regards steel aII cCaner seems to he making good progress toward final readiust-
 ment, but il is likely that some mar ket jolts are to be experienced before the turn SLltl come. NpLlliGlDUltlES ' generally are declining. and labor is
 being liquIdateJ steadily. More free dom of action for natural laws will soon pass us through the period of uncertainty into prosperity that will come if cooperation is promoted on all sides As prices drop, consumers
 will buy more freely and business will revive With lower food costs it will be found that the labor disturbances will automatically adjust themselves to new conditions without serious de velopments.
 It is to he hoped that the Peace Congress will expedite matters and
 establish peace with Germany on a se- cure foundation at the earliest possi- bic date. As soon as this is accom- plished financial arrangements can he made which will provide work for all Meantime the great banking worlI must mark time awaiting something definite upon which to base future ac- tivities. The public utility situation in the United States continues very much unsettled. A well known au~ thority says therc are only two courses apparently open in reaching
 2 =--'-tion of this problem. i. e., read just :.-5rs to give a fair return to the companies, or have the governments take them over at a fair valuation. The latter course is undesirable be- cause of the political evils which al- ways attach to government operation ; Of enterprises of this natu-e.