New Britain herald., 1920-03-20
Henry Clews
 Weekly Letter
{ Special to Hefald).

tain and dubious international situa- ton has been broken during the past week by the not wholly unexpected news of the German revolution. This it might have been predicted, would produce an unfortunate reflex effect upon the financial market, but in stead of that the outcome of the an- nonncement has been of a minor na- ture4 Much more attention has been given to the backing and filing in our own senate on the treaty ques- ton, but even that has become so fa- miliar as to arouse only a secondary interest. Continued reports of inn provement in the economic situation both on the continent and in Eng land have tended to stimulate con hdence in the gradual rightins of in ternatiunal relations and foreign ex- change has shown the effects of this better outlook by reaching mate rially higher and more stable level.
 The Tax Situation.
 Domesticaily one of the most hope ful features in the market outlook has been the disposition of public men m both parties to try to relieve the oppressive tax situation which has developed under existing law. The arrival of March 15 with it's enor- nous pawn ents into the federal treasury estimated to amount to round billion dollars with simultan- eous payments to the State of New York on local income tax account has emphasized the evils of existing conditions and the bad effect upon the banking position of present meth ods or payment. The secretary of the treasury has developed and placed before congress tax reform proposals of constructive charac- ter. which if carried into effect would do som ethinG to relieve the present conditions. At the same time author lt1es in the republican party have likewise shown a disposition to sup port the idea of sreate economy and efficiency. There is evidently a gen. eral agreement that the present ex- cess profits tax plan ! is inequitable and unsatisfa ctory. and apparently there is a better prospect of getting some early legislation that will re- lieve conditions than at any time heretofore. Meantime the 18th of the month has been passed and the return of tax funds to the market has already begun to exert Q beneficial influence in the relief of a strained situation.
 Favorable Industrial Outlook.
 The opening of the spring season has been accompanied by a grow ingiy favorable industrial outlook which has reflected itself in better values for stocks. Steel mills are now sold up practically for the whole year, while the evident need of the railroads for larger equipmen has naturally brought about a strong up ward tendency in equipment issues. Excellent demand in retail trade re- ported throughout the country has given a buoyant tendency to the shares of many industrial concerns. Since the stock dividend decision of the supreme court numerous plans for the early or later payment of stock dividends have been tentatively announced, and some have been ac- tua1ly put into effect. Notwithstand- ing a material reduction of the esti- mated amount of the refunds to be made under the stock dividend de- cision the effect of the opinion has continued to be materially helpful to prices while the policy which has been adopted, 8 result of it, by corporations has tended to give sub- stance to the predictions which had previously been indulged in. Crop prospect news of a preliminary na-
 
 has been favorable, and the outlook today is apparently most satisfactory for industrial development during the season which is now opening. This in itself tends to bring abou. better values in the market as well as a more optimistic tone.
 Market Review and Outlook.
 Despite some ups and downs dur ing the week the course of prices has been generally buoyant and stronger and the volume of business on the exchange has been substan- tial. Out of town buying has been in evidence from all parts of the country and the investment Toossibil- ities of stocks at present levels have apparently been recognized. All this goes 10 show that the market is resting or 2 good foundation. and w11iLe it may wa:ver now and then there is nothing to indicate that, the upward swing has exhausted itself. On the contrary, it is now apparent that whenever the valves are opened to let off excessive steam there is a rush to pick up stocks. Fear of tight money has kept a great number of people out of the market, but this feeling is now being dissipated, and with rates at moderate figure buy ing by the public at large will be- come more of a, feature. If call money should remain for a time 1t cent and per cent dividends and again look enticing, especially as o1 inc fa n