The Bridgeport times and evening farmer., 1920-04-03

it is hoped that this will turn out to | be the case Foreign exchange, un- der the influence of the bettered | financial outlook, has been strong and in good demand, and sterling has reached a high record level from which it has not receded very ma terial1y. There has been no further information with regard to the large prospective importations of gold from foreign countries. Present in dications are to the effect that the held there, pending the time that a transfer to the United Sttates is called for
 Taxes and Taxation.
 There has been much interest dur ing the past week regarding further discussion of tax reform, the sugges- tions made by Secretary Houston some few days ago being widely dis cussed in the financial community. General opinion is to the effect that while they are beneficial in their way they do not go far enough, and that a very extensive broadening of them will be necessary if they are to
 be of any benefit In the opinion of the best observers the entire abolition of the excess profits tax at an early
 date is necessary if we are to get
 back to basis of satisfactorily in-
 creased production and of lower
 prices. It is impossible to say how
 successful the movem ent for tax re-
 form will be, but there are some in
 dications which point to a possibility
 of it's being given serious considera- tion in Congress. Various Congress
 men who have expressed themselves have been in favor of action at this | held to the opinion that the actual
 probability of results was by no l means promising, but on the contrary rather remote. It continues to be a fact that a wise revision of taxation would be one of the strongest infFu- ences in favor of higher values of se- curities that could be applied. Opin- | ion is growing much more strongly in | favor of some means of harmonizing g 1 State and Federal income tax re-
 quirements, and there is reason to l believe that the next few months may
 see action pointing in this direction. 1 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 l week, this slu uggishness being due to i uncertainty on the part of the pub 1 lie as the status of their borrowing g l power.
 Early in the week it was an nounced that the roads had, with only few exceptions, accepted the
 Government guarantee plan provid- ed under the terms of the Trans | portation act, and that they were ac- 1 cordingfy protected to that extent for the next six months. In spite of this fact the roads have been placing or ders for equipment and steel only in
 a moderate way. Equipment stocks
 have been in strong demand and
 have sold at high prices because ol the belief on the part of their owner:
 that the railroads, even though tenn
 porari1y crippled in a financial way
 would practically be forced into buy. ing much more largely of equipmen than they have as yet done in order , that they might be enabled to fur nish the service which the public ex
 poets of them. This may eventuallg
 be the case, but if so would hardly b. a factor making for the greates } strength in the stocks of the road themselves, although it would be l factor tending toward higher price 7 in the equipments.
 t In all probability the next fev t weeks will see this question straight enSO out, ana there nave peon aSSur : ances from a number of authorita g tive sources to, the effect that tn s actual needs of the roads would al I most necessarily be taken care c I owing to the importance of such ac g ton in the interests of many othe = industries which are dependent upo e adequate car service.
 k Market Review and Outlook. t The halting attitude of the marke @ toward the close of the week owing l. high money rates was productive ( e profit taking. Those who have watch e ed it closely however, realize ths t quotations have often a way Il promptly recovering whenever the e yield to sales. The rails, upon whic T much was counted as a result ( = passing of the railroad relic n easure, continue, already note e to display sluggishress, the chit l. reason for this being the appare1 l. unwil1ingness of traders to take hol F. of them while So much uncertain1 ,f exists as to their earning status und, d the terms of the Transportation ac