The Bridgeport times and evening farmer., 1920-01-20
HENRY CLEWS'
 WEEKLY LETTER

News of varied and conflicting character from European centers show that their progress toward the definite introduction of a reconstruc- ton era Is as yet only, tentative. .Revolu- tion in Germany or what appears to border upon it coupled with discour- aging reports from Southeren Euro pean nations have tended to offset the satismaction due the definite putting into effect the treaty of peace which became operative on January 11th. Reconstruction appears to be making far better progress in Great Britain and Belgium than it is i'll other nations, while it will evidently be a long process to secure the en- tire reorganization of the system of the Central Powers upon an effective economic footing for the future An nouneements by the Secretary of the Treasury just before leaving office that there has been no change in the attitude of our Administration as to the question of governmental relief to Europe and once more throw this is- sue back into the hands of private ] individuals. Meantime the propects for ratification of the peace treaty in the United States continues in a
 
 some positive assertions that action will be had within a very short time 1t would appear that no immediat re- suits are likely to be obtained but that delay will continue-for how long no one can at this time predict These factors combining with diff cult financial conditions in the United States have undoubtedly tended to create discouraging basis for stock and investment operations during the past week. The early part of the week was one of decided liquidation and downward tendency in the market until Thursday. when the process was arrested and some improvement set in. Ay
 A WAITING MARKET.
 The market for the week has un- mtstakably been awaiting definite in- formation on the topics which are now uppermost in the public mind. None of importance has come with re- spect to the railroad situation which has continued almost unchanged, pol ltlcaliy speaking. There has been some consequent anxiety in sundry quarters based upon the belief that action would be so long deferred as to shift the question over into the political campaign. There is thus far no good evidence of any such prospect but on the contrary what has been done up to date by the conference committee of the two Houses appears conservative and likely to be helpful. This strengthens the belief that, in op- position to the more pessimistic fore casts, some definite legislative ac- ton will ready be had in the near future with respect to the railroad question.
 Meanwhile, however, railway incomes have been poor and investors and traders interested in railroad issues have been indisposed to move. Mark ct ranges of values in transportation stacks have accordingly been very narrow. On the other hand, there was another disappointing postpone ment of the expected action of the Supreme Court of the United States with respect to the status of stock dividends. In consequence market movements which had been expected to occur in a number of issues most directly affected but such action on the part of the court were deferred.
 PoStponement of any announcement as to the appointment of a new Sec retary of the Treasury has also proved disappointing to those who are directly interested in prices for Lib- erty bonds and in public fanance op- erations. Industrially the failure to carry out any phase of the Presi- dents programme of tax revision has intensified the situation, many having expected that the subject would at least have been taken up in earnest before this time. All these factors have had their influence and activity Tn market circles
 BUSINESS OUTLOOK GOOD.
 The decline of stocks which was so general early in the week did not, however, reflect a condition of dis couragement in the business world
 Reports multiply to the effect thar business men the country over are 1 looking forward to a year of pros porous business on a large scale. Many of them believe that prices will continue to risA throuhgout the year. Acting on this opinion retailers are buying goods far in advance and mills are booking orders we'll into the lat ter part of the year. In spite of un- favora ble conditions of foreign ex- change, the demand for our goods in Europe continues very strong. The | year 1919 has yielded us net balance ! of far over s4,000, 100000 according
 to the latest returns, while there i would thus far appear to be little 1 slackening in the value of our ship ments for 1920 even under existing conditions, decline in quantities being more than made up in value as meas.
 ured in money.
 [ Industrial plants are running full blast and are giving full employment | to labor. Reduction in the value of
 their shares and securities on the ex-
 changes is thus not due to any actual
 or perhaps prospective shrinkage in
 the volume of trade, but is ascribable
 to financial difficulties and tight mon
 ey as well as to the continuance of
 unfavorab1e taxation conditions on ! the part of the government Most
 observers agree that there is every in-
 dication of continued activity in man.
 ufacturing and continued demand for l goods at substantial and satisfactory ! prices even if not at materially higher ! ones than are now enacted The 1 problem of the. securities market is ] thus once more reduced to a question primarily of the money situation i troublesome as this has been for some , time