The Bridgeport times and evening farmer., 1919-12-30
HENRY CLEWS'
 WEEKLY LETTEn

gsE2NSB ErEs E~s5
 Holiday conditions in the stock market are now prevail mt and com parative inactivity is the order of the day, Several events or importance have nevertheless taken place within the past week, That which is possibly of most significance has been the adoption of the Cun1mins bill by the Senate, Secretary Glass letter to the House of Eepresentative in which he states the arguments In favor o9 the somewhat broader pol icy of credit extension to European countries, is, however, only second t5 it in inlp0rtaucN Neither epis,'5 8 has as vet had definite results in the market for the reason that Congress had adjourned for the usual holiday recess. Nevertheless the naming of a conference committee to dead with the railroad situation, whose func- ton 1t shall be to harmontze the pro visions Of the Esch and Cummfrs bills, and the prospect Of at least de- ferring the payment Of interest due on foreign loans, have together done much to encourage investors and holders Of securities. That some fair ly equitable railroad legislation will be forthcoming is generally believed, and the exchange market has shown very much more power to protect itself against attack since the issue of Secretary Glass letter, Demand sterling Tates- which had reached an unprecedente low point, have ma teTially improved, and there is some prospect of their holding their own 10 bn-at~FDr1 now that the adoption of the Ed-e bill gives opportunity for the taking Of definite steps designed to provide for foreign financing
 The President in directing the re- transfer of the railways to their own CTS as of March ], has taken the def mite step for the ending of Govern ment control and for fulfilling the pledge Of the United States Mean while the appointment of a commit tee of conference to reconcile the provisions of the Cummins bill with those of the Esch measure passed by the House opens the way ro actual railroad legislation. So Iere-thy and complex ara ths two hills t1aat no detailed description Of them can be given The CuucZrins bill is how ever, a, radically new departure in that il seeks to consolidate the pres ent railroads into few systems while 1t presCrIbes as a principle of rate-making that a net return of , Der cent on capital is to be earned The Esch bill is more nearly based on the Interstate Cor1merce Act and the relief it affords to the roads is far less direct and specific than that af- f0Tded by the CUmnlins plan The Hlsrh bill doeHs however. provide for the pooling of equipment and earn tngE Whereas the Cummins bill contains an antI-Etrike provision, this is omitted in the House plan
 TTould-be buyers are still held back owing to the high rates prevailing for money On the other hand there is q paucltE of offerings. as owners of good stocks feel that after the turn of the year it is believed that steps will be taken to stabilize the fnterna- tional exchange market, that a cross between the Cunanins and Esch bills will be pagsed fn aid of the railroads. that the peace treaty in some form will be adopted. and that the trade outlook is so encouraging industrial and transportation companies are facing good year. Rather stiff rates still rule for call loans. but bor- 1-or7Vers believe in a better future; at any rate, that feeling accounts for the tenacity with which owners of stocks hold on-
 4 Remarkable Year.
 A quiet condition in the market thus prevails at the close of what has undoubtedly been a remarkable year. During 1919 we have seen the eliniu- atiOn of government control of money rates and of opera tions in se- Curities, the revival of active trading and investment dealings, the removal of the artificial support of sterling, and as q result a subsequent decline both in British and other curTencies to an unpTece dentedly low level The volume of business on the Stock Ex- change has attained almost record proportions, while the issue of new securities in the United States has in recent months surpassed all former levels Of the kind Many new shares have been admitted to the Exchange, ard trading has attained a breadth and activity which could not have been expected at the opening of the year.
 The increase of activity on the Stock Exchange and in the securities markets generally has been the more marked because of the fact that dur
 
 rxr e %-,K,r,E, ry,(N pT-x-