The Bridgeport times and evening farmer., 1920-02-23

factional opposition. The great length of the new bill and the null titude of detail with which it aboundS prevent any recognition of more than it's main aspects. Chief among these is the maintenance of the present ba- sis of remuneration and wages for the next six months, the recognition of standard rate of 1-2 to 6 per cent. as the basis to be aimed at by the Interstate Commerce Commission in the establishment of its rates for transportation, the creation of a tri- bunaI whose function it shall be to settle labor disputes, and the adjust ment of financial relationships left over from the period of Federal ad-
 ninistration and management. The
 bad side of the bill is seen in the enormous powers it bestowS upon the Interstate Commerce Commission and it's apparent distrust of private enterprise or management in any, thing except a narrow field relating to the administration of executive de- tail. Still the measure keeps faith by returning the roads to their own CTS and is so much better than some of the plans that have been suggest ed that it has been an optimistic fac tor in the market, bringing about ad
 vances in railroad shares ranging from two to six or more points. At the same time the increased demand for and better price of railroad bonds has been accepted as a hope full augury of the future of railroad credit. It is, however, a mistake to regard the new bill as affording in any sense a "guarantee" of returns, since the "standard' rate of yield aimed at by the bill is merely a, gen eral rate supposedly to be applied in the compensation of all railroad capi- tai. This leaves the various lines to struggle for themselves against their competitors and suggests that the probable effect of the measure, in stead of being that of raising all rail road share quotations, is likely. to be that of giving opportunity for an ad- vance in some, coupled with a falling off in others.
 There have been important deve1- opments in the foreign exchange and export field. Notwithstanding that several of the larger banks engaged in foreign discouGpting have, appar- ently by common consent, reduced or abandoned the discounting of dollar biIls while others have curtailed the credit they had previously extended 1 to export houses which were carrying large balances in foreign countries so that the total support of our for eign business from credit stand point has apparently 1essened-the | quotations of exchange have shown a | very decided and satisfactory im- provement. Sterling has reached q l high point of about $3.46, while | francs and lire have advanced in a 1 somewhat corresponding measure and i there has been a strengthening of al- most the entire list of quotations Tho 1 situation is the more encouraging in l that it has followed upon tempor- 1 ary break which ensued immediately : after the resumption of control of for 1 eign affairs by President Wilson.
 l The next foreign trade statistics will probably show a decided decline 1 in the volume of exports sent abroad, l but whether they do or mot such a | check has undoubtedly been admin | istered and will eventually be exhib- i ited in the figures, which are always somewhat in arrears. Noteworthy in this connection has been the anA nouncement on the part of the pack ing house interests that their foreign | business had decidedly fallen off and l that lower prices for meats might be 1 expected in the near future. As a result of the checking of the export ! movement some IehOeuCy to pflce re-
 duction in a number of important
 lines has been indicated-a develop
 ment which in itself is favorable ta
 the improvement of investment con
 ditions. All this seems to encourage
 the making of investments in foreigr
 currencies by those who are ready tt ] incur the element of risk involved 1T
 such operations.
 While the money outlook continue:
 unsatisfactory and while foreign af
 fairs, as already pointed out, are in z
 far from settled condition, the pas
 week has undoubtedly thrown som, gleams of light upon a situation tha l had become discouraging. Int : = rket at present offers many op tunities for investment which ex } l-ed those that have presented them selves for months past. While tn, } bank loan situation calls for con
 tinued caution in making commit l ments, and while there will undoubt $ edFy be reactions in industrial issue } from time to time, enactment of tn,