The Bridgeport times and evening farmer., 1920-01-14
I. |. WATSON'S
 WEEKLY LETTER

The Stock market continues to pc
 irregular, with cross currents and
 specially activity. Pending uncertain
 ties prevent a long look ahead, and
 the various e-investrlent
 elements are cautions. We look for
 a trading market, with bullish ten-
 dencies displayed chiefly in special
 ties. Stock representing companies
 whose assets are strong and manage
 ments good should be favored, and
 bought on reactions for turns.
 While nothing is in sight at this time suggestive of any important ! nIoveTne mt toward lower levels iE the general stock list. the credit strain continue. to exert opposition against a. broad upward trend of aggressive activity. Easing of money rates would be expected to increase spec ulative buying. and such a condition would probably expand investment absorption.
 The announced intention of the Federal Reserve Board to reduce un- essential loans has been variously in- terpreted, but in the main it seems to be directed toward the general business world rather than toward stock market and Wall Street con- l ditions, where considerable readjust- ment has taken place and where speculative excess was curbed in the latter part of 1919. It is not inter- preted as prohibitory of specially bullish activity in the market.
 National politics are coming to the fore more prominently, and Presi- dental issues may become market factors on an enlarging scale. With ratification of the peace treaty they may be expected to dominate the 1 market movements at times. The views of active candidates for the of 1 flee of Chief Executive will be closely scanned by the financial district. The labor situation continues to ! mend. We are of the opinion that the wholesale deportation of Reds | has had a great deal to with quieting radical labor, and further signs are I noted confirmatory of the view that , the acute crisis in the labor world l has been passed. The unions are | joining in a movement for a co-op- 1 erative plan to promote efficient pro- | duction and distribution, and may l drop their demands for higher wages 1 now that some of their leaders ap- pear to understand that real relief does not lie in shorter hours and continually rising wage scales. The l United Mine Workers of America I vance the award of the National 1n- 1 quiry Commission.
 1 The Senate and House Conferences 1 on railway legislation seem to be making progress toward a reasonable ] cornpromise of differences. Agree ment on a revolving fund of $3O0,- | 100000 to tide the carriers over from 1 Government control until new fin ancing can be arranged is a favor- i able feature. It is expected that one of the first acts of the homogeneous ! of the leading. railroads after return 1 to private ownership will be to place | large orders for rolling stock which l should be reflected in the equipment l stock list. - Authorities at the automobile show 1 in New York during the week were quoted as saying that the production { of the industry during 1920 may double that of 1919, so great is the demand for automobiles. This pros 1 pect has had bullish effect on the l stocks of companies producing sup plies for motor cars, such as tires ano l other accessories. The stocks of the automobile producing companies themselves should be selected witf
 care, where bought, because of the new concerns introduced upon the market.
 l. Copper metal continues to ref1ec
 quiet expansion of consumption
 Is stated that the sales of this meta
 during November and Decembe
 combined were over 625, ,00O, OO'
 pounds, the largest total for tw'
 months since the summer of 1918
 After the peace treaty has been dis
 posed of, buying of copper metal i
 expected to increase materially. Il consideration of the present and pros . pective conditions there has beel
 more activity in the copper shar list.