The Bridgeport times and evening farmer., 1920-08-23
HENRY CLEWS'
 WEEKLY LETTER

eign situation has kept security and | exchange markets in a state of sus- pense throughout the week. Even | though it be true that the prices of 1 local stocks are not in any sense 1 directly affected, it remains the fact | that the general disturbance and un- certainty prevents constructive devel-l | opments which would otherwise occur l rom taking place. This seems to suggest the probability that the for eign situation will continue for some time to come to be an active factor both in the security and in the ex- change market, and such is clearly the case. During the week condi- tions have taken on a more favorable aspect in the fact that the Polish forces have been able to turn their opponents back from Warsaw, while l on the other hand the Government at Washington has defined it's posi- tion little more clearly. It stands ready to use the full extent of the | constitutional powers of the Executive | in aiding the maintenance of Polish l independence. Precisely what this l implies is still far from clear but, ac- l cording to the statement of MT. Col ] by, the practical measures adopted are of nature which it would be 1 unnecessary and inadvisable to discuss | in public. Whether they will include | advances of money out of the balance 1 remaining from the war funds provid l ed by Congress before the armistice | is question which has been of con- | siderable interest to dealers in ex- 1 change, but as to which there is no l official intima tion.
 Domestic Policies.
 As would be natural under the conditions, political discussion has 1 centered in no small degree around | the question of our foreign policies l and seems likely to continue along | that line during the autumn. It is, | however, interesting that there is more and more attention to the tax l question, and that the proposal put l forward more or less distinctly by or | for both candidates in favor of the | repeal of the excess profits tax and | the substitution of a sales tax appears l to be gaining ground. This is as | might be anticipated. Senator Hard | ing's attempt to revive the tariff l discussion, suggesting to some Cali | fornia interests that the duties will be 1 one of the topics to receive early at | tention, has not been enthusiastically | received inaSmuch as there is general | agreement that revival and main | tenance of our foreign trade is essen 1 tial to prosperity, particularly if we | are to enable the foreign debtors of | the United States to find means of | settling their obligations in this coun- | try. Revival of controversy regard | ing the Federal Reserve act seems to have been in progress but is largely a | discussion as to the responsibility for | the measure without suggestion of any 1 new banking or financial policies in l the event of the success of either l candidate. In fact, there would seem l to be little demand for additional | ;~1 L. | major character. There has been | further improvement in the Treasury | position during the past month, ac- l cording to tabula ted statements now | made public by the department, while | an issue of new certificates of indebt-
 edness amounting to $50, O,000,00O of | fered not long ago, has been an | nounced during the week as over l subscribed by some $50,00O,00o | Grant of higher express rates would | seem to ens.lre the recovery by the
 companies of at least a portion of the | revenues lost through the $30,000,00 l wage advance announced not long
 and confirms the belief that the Gov
 ernment authorities are now at last
 determined to conserve the resources
 and ability of the carriers. In like
 fashion extension of Governmer'
 loans to railways for the purpose o1 | edulpIIISilL dlIouIlIlIS to SGuo,UOO,uUN
 shows a disposition to overcome the
 present conditions of inadequacy ant
 shortage existing on many of tho
 lines.
 The Money Situation.
 In general the money situation may be considered to have kept practically stationary condition
 throughout the week. There was
 temporary rise in the call rate toward , 1 Of f 1,o but +I,
 money condition has practically re
 mained unaltered. In the reserv system the variation in the ratio an nounced at the beginning of tn. week was so slight as to be negligi ble. There was little change to b , traced in the internal affairs Of tn system except possibly a reduction o the degree in which the West an
 South have been dependent upon tn
 Eastern and Northern banks for re
 I discount assistance. This latte
 | trend, however, has been regarde
 l by not a few fpanciers as indicatin
 that the peak of demand for harvest S ing had possibly been passed, an n statements to that effect have bee
 made by some authorities during tn course of the week. There is as ye = insufficient evidence on the poin f Even if, however, the more optimisti
 opinions on the subject be taken a
 correct, 1t would still be true that
 | long period of strong demand fo = funds is before the country, and tha f during that period there is but littl :, to be looked for in the way of easie u money. An increase in the deman
 1 of interior banks in certain section
 l for investments in the form of prirn n bankers acceptances is regarded b | some as pointing to the accumulatio u of harvest receipts and hence t r easier financial conditions, but cit
 bank conditions suggest little if an
 reduction in the urgency of deman | originatin with correspondent ~ Prices of commodities have shown |. continued tendency to decline whic
 is by many regarded IS the outcon
 of the money stringency, coupled wit
 the fact that export trade has falle , off (more goods being consequent