The Bridgeport times and evening farmer., 1920-06-30
HENRY. 1. lCLEW;S,''. LIE \ S.
 WEEKLY LETTER

Outsta nding among the develop ments in the foreign situation during the past few days has been the re- newed conference between the Allied . Premiers, which has resulted, accord ing to report, in a preliminary agree ment on a figure of 1fo, ,00o,o0O,ooO to 0,0O0, 900 marks as the total of Germany's war indemnity.
 The payment, according to the an- nounced plan is to be spread over tInirty-seven years with an annual payment of not less than three billion gold marks or, roughly speaking, s750, 100000 per annunl. This pay nent will of course be discussed with the. Germans at the conference at Spa shortly to be held and the arrange nents may be modified, but present indiea tions are that it will stand very much as now announced The ques- ton whether Germany can pay so large a war bill will have to be de terfnined by experience, and will de- pend a good deal upon the extent to which American and other foreign capitalists are allowed to finance German industry, thereby enabling the Germans to produce goods with which to meet their foreign claims.
 At all events the definite settlement Of the amount to be paid, when reached, should give very much greater degree of sta abil5ty to foreign exchange quotations Some indica- tions of the influence which may be exerted in this direction are alrea dy seen
 Domestic Outlook Good
 While awaiting a more settled re- lationship in our foreign affairs, consummation which apparently can not be attained until after the Presi- dential election, the domestic outlook continues good Foreign trade figures showing an increase in our exports during the month of May in an amount not less than $55-O0O, ,000 over the preceding month indicate that the demand for American goods abroad instead of falling off, as has bsen reported s~isseincfeasing- The goods moreover are being financed. otherwise they womb not move abroad ---
 In spite of the depression which has existed in the clothing trade and in some allied lines as a result of cancella tions of orders and so-called ''price slashing" and other factors, reports from various parts of the country indicate great activity in manufacturing with no reduction in rates of wages
 The wheat crop estimate is now 7S0,ooo, 900 bushels which if real ized will be much above the ten year average, while other grain crops are promising There has been some improvement even in cotton The effect of this state of affairs in business and industry ought to be reflected in prices of securities and there are many who believe that with a. little clearing up of the political situation an upward movement will begin due to recognition of the fact that many stocks are bargains at ex- istfng prices and that there is every reason to believe in their future in come producing power
 Railway Situation Better.
 There has been a steady if slow improvement in transportation con- ditions although the relief of the congestion which had grown so serious during April has not yet been sufficient entirely to 1iquidate the frozen credits' of which SO much has been said- '.a,-, .4---t.'-
 Despite some threats of renewed labor trouble the actual facts do not seem to show any such aSgrava- ton of conditions. while the effort of the President to secure an early uncernent of the decisions of the Railway Labor Board augurs. it is believed, a definite adjustment of some at least of the controverted points in the railroad business
 Meanwhile railroad managers who have carefully investigated the Wash inston situation are reported strong ly confident of an early advance in rates and this should bring about ma teriaIly better quotations for stand ard stocks. The equipment shares have been strong all through the week on the strength of orders all ready placed and others which it is believed will very soon be given out
 Among the railroads themselves there has also been d distinct dispo- sition toward better prices based upon the view that income prospects re likely to be improved at no dist ant date. Special advances have been made by number of the Eastern roads whose stock has been recog- hized as having reached an unduly low figure. In some ways the rail- road group of shares seems likely to offer an exceptionally attractive field for investment so soon as govern mental and labor conditions have at tained somewhat greater degree of stability.
 Capital Mc1fey and Exchange.
 The scarcity of funds both in the irves tnent and banking field.' how ever, continues to be evident as in dicated by high rates which during the past week have several oc- casions gone to II per cent. in the case of call money and day to II per cent The investment sit uation has hardly improved is in dicated by the placing of the New South Wales bonds in the London market at 1-2 per cent during the week, while our. own Government ob- legations producing per cent. are far from being in overstrong demand.
 The improvement of the Federal reserve systems ratio at the open ing of this week was good sign especially as analysis of the figures shows that there has been some sue cess in developing the so-caued credit control. Nevertheless it is admitted d that there has been not more than q trifhng gain in the supply of funds actually available in the market. This more than anything else. has operat- ed handicap to investment oper- ations and also has a bad reflex eff feet upon the dividend policy of cor Dorations and through them upon the price of their stocks, since in