The Bridgeport times and evening farmer., 1920-05-10
HENRY CLEWS'
 WEEKLY LETTER

Despite active political intriguing in Washington and more or less ne- gotiation with foreign counties there has been little or no change in our international status as re- gards Europe. There is an increas- ing disposition in Washington to at- tain some settlement, but this is clearly the result of domestic po1i-
 teal controversies more than the outcome of a, statesman11ke appreci- ation in Congress of the fact that our present national position is impo.;- stble or dangerous. The public and especially the financial market has come to recognize this situation SD l fully that European news no longer l has much effect upon the course of l prices and during the past week in- terest decidedly shifted to the Mex ican frontier and away from San Reno and other European points of controversy or discussion. The ne- cessity of sending destroyers to tho east coast of Mexico in order to pro- tect American life and property was unavoidable in view of the develop ments there and in the opinion of many represents a type of policy which should have been pursued Ions. ago. The assaults upon the persons of Americans in Mexico which oc- cured during the past week do not ] differ in their character from what 1 has taken place many times before, 1 but at present there would seem to 1 be something of a combination of i personal aggression and interference | with ownership rights that may bring 1 about some results. At any rate the center of political interests in the in- 1 ternationa1 sense has for the present shifted to this side of the water. ] Dom esticaly the progress of the Presidential campaign has been en- l couraging because of the generally l increasing degree of conservatism l that has been shown by most of tha candidates as they have advanced In l popular approval.
 | Economic Issues to the Front,
 In the domestic field as well as in 1 the international, however it now
 seems clear that the chief interest
 of the season will center around { economic problems. Of these tho principal are unquestionabIy the rail- road outlook, the cost of living and | taxation. During the past week the Interstate Commerce Commission has
 opened the long expected hearings
 with reference to the question ot
 railroad rates, and it is now strug-
 g1ing for the first time with the problems of readjuSting conpensa.
 tion under the new transportation
 act. Thus far the market has viewed
 the progress of events with consid- erable satisfaction because of the
 apparent disposition to allow a fair hearing and because of the convinc-
 ing showing as to the need for rates which has been made by the. repre-
 sentatives of the roads who have !
 hearing. Some time will be required
 to get a verdict, especially in view of ! the large sums involved, the roads having set their requirements at
 fully S1 900, DOG, 600 of new income in
 addition to what they are now re- ceiving. On the other hand the at- ] titude of the Government is mani fest4y likely to continue disposed to the repression of imitation and larger bank credits than now exist because only by so doing can there 4 be any prospect of a reduction oi a prices. This fact, so far as it goes tends to make for a constriction oi bank lending during coming weeks s As for taxation the week has beer 5 n less encouraging in that field than 1T q any other, owing to the continued prominence assigned to the various q bonus schemes of one sort or an S other which are before Congress, ant ls the apparent strength of their pro 5 ponents. However the strongest as 5 surances have been given by Con 1 gressional leaders that whateve A bonus scheme may be resolved upol 2 will not be put through by the us q of the more piratical and dangerou 1 of the retroactive tax plans suggest - ed. With this cold comfort the mar
 ket has had to be content, belieyin F that the suggestions which cam
 from the radicals in Congress hay or been far too extreme to secure an d real attention in the last analysis. g. Banking and Exchange.
 o, The improving conditions in tn m economic outlook have been ref1cete al in the banking situation. Althoug IS the reserve ratio of the Federal Re
 serve system has again falIe
 slightly, the decline is not seriou
 and careful review of the figure .c show that what is taking place
 really readjustment of loans rathe than an undue increase of then io Spring demands are, of course, heav te but not unduIy so. Recognition ( La this fact more than perhaps anythin '- else has led to a reduction in th 1- cost of call money from the hig se rates of last week to a general lev,
 
 1e have been in short supply and haS In brought high rates. which have bee 't, probably somewhat aggravated l- action of the local Federal ReserI vs bank in raising it's buying rate c u- over the counter paper to apout ce per cent as a maximum. What wit re high rates abroad, the intense d. e. mand for funds at home and u de shortage of capital for all sorts ch requirements as well as the constal an threats of higher rediscount rate re the money market has held it's ow ed remarkably well. In the foreign e: he change field the recent slump
 Continental exchanges has clear
 been stopped, and both francs ar
 lire have had a small but who'll
 some rise Sterling has f1uctuate
 occasionally, but has maintained i
 average level with little modificatic
 at Dnt far from S3,S5 That lar.