The Bridgeport times and evening farmer., 1920-01-06
I. 1. WATS0N'S
 WEEKLY LETTER

The stock market ended the Old Year cheerfuuy and greeted the New Year with hopeful strength. High money rates failed to break prices even under professional pressure. The technical position of the general act i've list may therefore be considered good. If the money stringency dis appears next week traders friendly to the long side may be expected to op- crate for higher prices in antic1pa- tion of ratification of the peace treaty during the month of January. We believe purchases made discriLni- natingly on reactions among the standard issues will give profitable turns to those who are taking due precautions against interference by the money market
 Congress will resume consideration of the railway problem. The Senate is expected to arrive at a compromise on the peace treaty and officially end the war with Germany. The United States Supreme Court will be in ses- sion Monday, and it is expected to hand down decisions of importance. The stock dividend verdict, if favor ing the corporations by declaring
 
 probably be followed by a good deal of buying in anticipation of melon cutting" by leading concerns whose accumulated surpluses justify extra disbursements.
 Large sales of copper metal are re- ported to have been made. Condi- tions in that industry are gradually becoming more encouraging: With ratification of the peace treaty a for ward movement may take place, for it is understood that such action would be followed by the release of new orders for copper. We believe that anything which might increase the supply of money for speculative investment would work in favor of the leading copper shares, especially those which have a large amount of silver in their ore.
 Announcement is made by Judge Gary of the United States Steel Cor poration that there will be ad- vance in steel prices Sat present, and that this concern is operating at over so per cent. of capacity. This con- firms statements made elsewhere to the effect that the steel companies arc receiving more orders than they can fill. Inefficiency of labor is said to be a factor holding back produc- ton. Ill effects of the steel strike are reported to be practically past, and the first quarter of 1920 is expected to show recuperation by the leading steel producers.
 Senate and House conferees on the railroad legislation before Congress may make a report in the near future, and important laws in favor of the transportation lines are now antici- pated during the next few months. The American Bankers Association Special Railroad Committee recom- nends a guarantee of operating reve- nue for six months, with a suggestion that the government control new stock issues. As soon as the carriers A are in a, position financially to place new orders for equipment the rolling stock companies may be expected to enter a prosperous era, for European railway equipment needs are pressing and very large.
 A great deal of interest centers in a meeting of Federal Reserve Bank CTS al Washington on Jan. 6, where the question of further advances ir discount rates will be taken up. and the matter of curbing speculation ir commodities as well as elsewhere will also come under consideration. The process of defation is believed tc have begun, and the sooner it comes the more quickly will the nations business be on l, sound foundation European bankers are also consider ing the question of further advances in discount rates.
 Active speculative interest is beins aroused again in the tobacco group; the motor accessory issues including rubber securities; feather stocks; oi shares; and food producing compan ies. This seems to be based upo1 confidence that these lines of bushes: will enjoy great prosperity during the first half of the new year.