The Bridgeport times and evening farmer., 1920-05-10

outstanding issues This is in some ways an indication of growing in dustria1 activity and indeed the re- ports which come from the prodnc- ing sections show that in nearly all the. various lines of business there is unprecedented demand, with factories sold far ahead. In some branches, it is true, very high prices have caused a decline of buying power among consumer@a condition of affairs which promptly brings it's own cure. It is hard to resist the belief that | after making allowance for every thing the United States is facing a period of utmost demand on its re- l sources, with corresponding oppor- | tunity fnr legitimate business and | trade.
 Investment Yields.
 Not only stocks but bonds have l now been reduced to 8 point at 1 which they offer very handsome in vestment yields. Bond indexes for the past month show a, record low figure. Liberty bonds have been ex- ceptiona11y low in price and what is true of them is true in similar degree of the best railroad and industrial issues. The effect of recent large corporate financing at very high rates has been that of materially raising the market value of money. Perhaps there has not been a time in many years at which investments could be made with so striking a combination of protection and large yield as at present. This is true not only of | bonds but it is also obviously true of | some of the better grades of stock | issueS- The tremendous demand for 1 capital which is shown in the enorn- i ous output of new securities which has occurred during the past month | and earlier creates practically a coIn- l petitive market for savings. In one way this situation tends to prevent l the early advance cf bonds and con-
 servative stocks to higher values, but l it also emphasizes the worth of well selected issues compares with those | of less certain yield, in view of the | very high returns which can be ob- | tained even on extremely conserva- 1 tive investments. One effect of this 1 condition of affairs should be to 1 stimulate the outside public in it's l purchases and during the past week | there has been considerable evidence 1 of such a change, much investment | buying being reported.
 Market Review and Outlook.
 The market situation during the past week has been stronger and bet ter, though early in the week a. con- | tinuation of the downward movement
 of the preceding period carried some
 stocks to new low levels These low lleveks were not maintained. but re- | covery in a rather quiet and dull
 market took place during the latter part of the week. Much more hope
 ful conditions are now manifest and
 there is strong belief that present
 conditions are only temporary and that as soon as the railroads can
 catch up on their freight blockade
 due to the recent strike, the present
 frozen credit will be replaced by
 greater elasticity. It is, however, quite apparent that there is httfe dis 1 position to get into debt and this
 seems good policy, for the time being at least, for there is no question that banking institutions will charge fair : 1y high rates for some time to come
 in order to reduce non-essentia1 Dor : i rowing to the utmost Another mat , 1 ter which is causing food for thought
 is the renewed talk of trade read
 justment, especially in clothing lines
 but this may be a wholesome ant
 constructive feature. That there i! ', to be a readtustment in this direction
 and that wages will sooner or late1 be scaled down seems foregont . conclusion. The news of most i'm portance 10 the InaIkeL IS I1e <1ai : nouncement that the railroad head : have applied for a 2S per cent in crease in freight rates to take effec on September 1st next With any T | thing like certainty that this reques -- - will be granted, railroad share would be taken out of the unceFtail :, class and become very mach nor
 attractive. Until, however, the bank
 are more 1enient in the matter o
 loan accommodations there is nc
 much likelihood of the parchasfn | power increasing, and without thi II the market cannot be expected t ,o advance very much; in fact, favor sales on rallies.
 'g WON IMPORTATION