New Britain herald., 1920-03-29
Henry Clews
 Weekly Letter
Especial to The HeraId)

evidently improved but slightly, if at all, and advices concerning the conditions in that country indicate clearly that little is to be expected there until such time as exchange is restored to a more normal basis and raw materials are supplied for the purpose of enabling the German pop ulation to resume work. The defi- nite defeat of the treaty of peace by the senate of the United States has apparently had the effect not of de- Stroylng hope that the United States would eventually become a party to it and member of the league of nations, but merely that the whole situation would have to be thrashed over in the autumn campaign with the result possibly of deferring ac- ton until a year from the present time or perhaps longer. Meantime the league of nations itself is evil dentlE beginning to function, al though on a limited scale and with the evident probability that the more reactionary or less liberal elements will be in control of the situation. Altogether, it would seem that com paratively little improvement in our foreign affairs is to be looked for in the immediate future.
 DoHiestlc OutiOOk Improving.
 In the financial and industrial field at home the outlook is enthusiastically improving. Reports from all over the country show full employment for labor and a fairly good condition of industrial harmon ony. Relatively few labor controversies are in pro- gress at the present moment and those which now exist do not portend anything of a threatening nature Manufacturing is continuing in full volume. Wholesalers report a larger volume of business than perhaps ever before. The public at large is buying more conservativelE and is less in clined to pay eNorbitant prices than heretofore. but this in itself is hopeful symptom and should en- optimism rather than the reverse. The agricultural season is opening splendidly in most parts of the country, the chief cause for dis turbance in that connection being the fact that labor is in such strong demand in the factories and in city work generally that it is still leaving the farm. X great shortage of agricultural labor will undoubted- ly have to be provided for this sea- son.
 The Railroad Situation.
 Contrary to what had been expect ed. railroad stocks have not shown very much disposition to move in one direction or the other during the past week, this sluggishness being due to uncertainty on the part of the public as to the status of their bor- rowing power. Early in the week it was announced that the roads had, with only few exceptions. accepted the government guarantee plan pro- Vided under the terms of the Trans portation act, and that they were accordingly protected to that extent for the next six months. In spite of this fact the roads have been placing, orders for equipment and steel only in a moderate way. Equipment stocks have been in strong demand and have sold at high prices because of the belief on the part of their own- CTS that the railroads, even though temporarily crippled in financial way, would practically be forced into buying much more largely of equip ment than they have as yet done in order that they might be enabled to furnish the service which the pub lie expects of them.
 Market Review and Outlook
 The halting attitude of the market toward the close of the week owing to high money rates was productive of profit taking. Those who have watched it closely, however, realize that quotations have often a way of promptly recovering whenever they yield to sales. The rails, upon which so much was counted as a result of the passing of the railroad relief mo ali to display sluggishness the chief req son for this being the apparent un- willingness of traders to take hold of them while so much uncertainty ex- iStS as to their earning status under the terms of the Transportation act. Valuation methods will, of course, have much to do in determining the ability of the various roads to earn and pay dividends; and while there can be no doubt that, based on pres ent replacement costs. a great ma jority of the companies will show up well, more or less doubt on this point must remain until the commerce commission makes known it's rulings. These are likely to favor the roads, despite the attitude of the railroad commissions from the various states, who at this weeks hearings strongly opposed the method of using prop erty investment valuations in fixing rates. In consequence there is chance that the shares of the com mon ca rriers will shortly come more into the speculative imeliGht. The advance in copper metal Guota tions is an encoura gins sign. as il denotes that consumption is once more over ia king production. There is no req son to change the opinion that the 1920 spring rise" has by no means run it's course. Occasional req ctions now and then will occur. but these are to be expected in any general