The Bridgeport times and evening farmer., 1920-03-23
HENRY CLEWS'
 WEEKLY LETTER

The uncertain and dubious inter national situation has been broken during the past week by the not wholly unexpected news of the Ger man revolution. This, it might have been predicted, would produce an unfortunate reflex effect upon the financial market, but instead of that the outcome of the announcement has been of a minor nature. Much more attention has been given to the backing and filling in our own Sen ate on the treaty question, but even that has become so familiar as to arouse only recondary interest. Continued reports of Improvement in the economic situation both on the Continent and in England have tended to stimulate confidence in the gradual fighting of international re- lations and foreign exchange has shown the effects of this better out look by reaching a materially higher and more stable level.
 The Tax Situation.
 DomesticaIly one of the most hope fuI features in the market outlook has been the disposition of public men in both parties to try to relieve the oppressive tax situation which has developed under existing law. me dIT1fdl O1 N1dTCh IO "llH lIS enormous payments into the Federal Treasury estimated to amount to a round billion dollars with simultan- eous payments to the State of New York on local income tax account has emphasized the evils of existing conditions and the bad effect upon the banking position of present methods of payment. The Secretary of the Treasury has developed and placed before Congress tax reform proposals of a, constructive character. which if carried into effect would do some thing to relieve the present condi- lions. There is evidently a general agreement that the present excess profit tax plan is negotiable and un- satisfactory, and apparently there is 3 better prospect of getting some aarly legislation that will relieve con- 7itions than at any time heretofore. Meantime the 18th of the month has been passed and the return of tax funds to the market has already be- gun to exert a beneficial influence in the relief of a strained situation.
 Money Conditions
 This relief has been seen in easier "ates for call money, the IS per cent -harge which was established a week ago gradually shading off to ner cent, and finally to per cent at the close of the week. Time funds are still scanty, and there is some tendency to an easier rate for them which, however, is still high. The last report of the Federal reserve zystem's ratio showed a reduction to 42.5 per cent, or the same level as had been reached two weeks ago This, however, is a reduction of only zI a week, and it should be borne ir mind that during that time consid- 7rable exports of gold to SoutF America totaling about $12,000,00C have been made. The situation therefore, is better than is suggested by the ratio, inasmuch as the sys tenn has been able to hold it's own 1T spite of the drain of gold out of the country. Reports of prospective i'm portations of gold from Great Britain and France still lack official con | firmation but the indications are ia vorabIe for a considerable move mert- Even if the metal should fol l a time be kept on deposit at Ottawf ! pending it's transfer to the United States the fact that it had been ship ped would greatly tend to increas confidence in the successful fulfil nent of the operation of settling O ,efunding the Anglo-F'rench bon,
 maturity of the coming autumn. Il
 hese circumstances it is. to be eX lected that an improvement in ex 'hange quotations will occur, an
 his, in fact, has been accom- plishe6 =terling rising to a maximum o 2.S2 1-4 for demand, while durin
 he current week the general 1eve r~= been in the neighborhood c
 or higher.
 Favorable Industrial Outlook.
 The opening of the spring seaso
 aas been accompanied by a growing
 " favorable industrial outlook whic has reflected itself in better value for stocks Steel mills are now sol m practically for the whole yea