The Bridgeport times and evening farmer., 1920-06-05

check imitation and provide for the l requirements of crop moving. MT. l Harding further points out the fact l that the present difficulties in the l money situation are complex and re- l suit only partly from the speculative 1 activities which have been so widely blamed. He shows conclusive1y that congestion of comm odities ana poor transportat tion are important factors, and that it is to be expected that money difficulties will persist. As a result, he calls upon the member banks of the country for the check ing of unessential loans and for the limitation of loans made for the ex- tension of plant facilities. All this seems to indicate that there will be I little change in the present situation for a good while. An important fea- ture of the letter is seen in the appeal | it makes to banks all over the coun- 1 try to undertake the work of re- | str1ctlng unnecessary credits'' Most l Of the contraction efforts thus far ] undertaken have been put into effect at Federal Reserve banks and have
 had their most direct effects in ad- l vancing rates for call loans. It is | only within the past few weeks that | more energetic effort to restrict cred- 1 it has been made along commercial 1 lines. Such effort, if successful may l result in releasing funds for investi- | ment purposes and may thus unex- | pectedly mitigate the call money sit | uation. For the past week call rates
 have been unquestionably moderate, l the prevailing figure being per cent | but 1t is hardly to be expected that | that condition will continue indefn- | ite1y. Further gold receipts amout-
 ing to s22,200,000, for account of | British Government representatives
 have tended to strengthen sterling
 and should help the reserve ratio, | which is already half a point higher
 The Railroad Situation.
 There has been more actual pro-
 gress in connection with the railroad
 situation within the past few days
 than for good while. Not only have | the roads set in motion a definite
 policy for the redistribution of cars,
 but they have also been supported by the Interstate Commerce Com
 mission in their efforts to end the
 freight jam through orders estab- fishing priority of shipments, which
 should before long relieve existing : conditions in no small degree. The
 decision of the Senate Committee to
 provide SIPS, 5,00O,0OO for equipment
 had been expected, but the announce
 ment of it none the less has afforded special encouragement. Hearings have been begun before the Interstate Commerce Commission with respect to the question of an advance in freight rates, and the testimony which has been offered by railroad executives has been conclusive in it's , showing that present revenues were far from sufficient. The rate of in- crease now called for amounts to about 2S per cent advance over pres ent charges for freight transportation and should that be granted the lines will apparently have reason to look forward to the earning of 6 per cent return on the actual value of their property. There has been noth- ? ing thus far to indicate any unfavor- ] able attitude on the part of the com mission, but on the contrary the statements of one or two members of that body have indicated a recognition that the Transportation act has vest ed new functions in the commission which are of a nature to call for the exercise of protective powers intend ed to prevent the deterioration of the . | earning power of the carriers. To this combination of favorable factors lmay be attributed the decided ad- vance during the week in good many of the railroad shares, and es- pecial1y in the equipment stocks, most of which have shown a distinctly stronger CenuenCy. Many or the rails are undoubtedly bargains at present prices.
 . Taxation Outlook
 - The increasing opposition on the
 part of the public at large with re- spect to the proposed --polius biIY.'' with it's long list of new taxes, has apparently slowed down the move ment which at one time seemed like ly to carry this measure to the statute | books at an early date. Predictions l are now made that the bill cannot be adopted before the proposed ad- journment of Congress, and should these expectations be confirmed the result would be to greatly diminish the outlook for the adoption of the measure. So strong is the ease against any such plan at the present time that only the pendency of the