The Bridgeport times and evening farmer., 1920-06-19
HENRY CLEWS'
 WEEKLY. LETTER

The adjournment of Congress and the meeting of the Republican con- vention are obviously the leading fac tors i'm our foreign as well as in our domestic financial situation today Many investment and financial plans were undoubtedly held up awaiting the outcome of the Chicago sessions, while abroad it is already recognized that the results of this summers con- test mnay have a very direct-a1most immediate bearing upon our for eism relations It is already suggested i'm authoritative French and English quarters that various questions which have been held in abeyance on ac- coMmt of the deadlock between the President and Congress may have cHnanGe of readjustment as the out cs0me of the presidential contest This appHies not only to the whole treaty sdituatipm but also to many detailed tIuesTiDmS arising in connection with @mr fOreigm economic policy under the breaty and also apart from it. The adjournment of Congress has reaiev- s@ tlhs market from the fears that Msene wmawoida.bly felt in consequence of the variouas extreme taxation plans yv1h5cEh have been put forward during the Fatter days of the session. Traders, however, are already recognizing that th5s respite may be only temporary and thnt wh ether it w1l1 be so or not derpendtS in no sman degree upon the der+isii1m of the electorate
 Some Encouraging Indications
 Meantime, however, the suspension of congressional activity probably un- til next winter affords am opportunity for djust tment in a, number of di- rections. There is still a wadting at titude which is likely to continue un- til the political campaign is we'll open a reszuIt of the adoption of plat- frums :and candidates by bptm parties. EncGmrag:tnE Indications, however, are i'm evidence The Interstate Com rranrre Cu1nurission has taken the ex- pet-tad Etep of making available S125,- 0ND ,ODD for the purchase of equfpm ent by tine raiInua1ls, this sum to be spent fruum the Ro-ca1Ied @'rswo1ving fund" wfhir5h had been provided for under tFhe Transportation Act. The adDp- tiGm of t1hs JamsB Shipping Bill, while rt.srsttea by bhuse who do not believe i'm government ownership or in special ssuIhssieies, at amy rate ends the un- cs.rtaiiTty which has existed for some tfrne past with respect to our shipping policy and prepares the way for the prusecutiUn of good many enter putissss i'm witiich there has been hesi- tpriirsn and doubt for some months gDEGSzt. Fwtm with measure which is ,sgrsn t,O r.riftiir3isml there is a distin ct <sttv'a11 tagye i'm Knowing what is possi- bIe and i'm being able to proceed with n dssffnIte baxsis of calculation. The ssrr6v0 GI.rtIook, a1thpugh far from be- ing; ass good as last year, seems likely fHD tlrr-n out in many directions better 1lhEam drad beem anticipated, is Eag- Eested by a government winter wheat report showing a loss of only 5 per cent below average condition for the past few years. While there has been sonne contraction of business as a re sulAt of the restriction of credit cUnse- qulszrtt u.,Cm the adoption of the high rate policy by Federal Reserve banks this is far at 1ea&-t wholesome and is apparently resulting i'm some redue- tion of prices which was certainly much meedted. The downward trend of prices appears to he a worldwide phenomenon Stlowm by index num- Der reports both from Great Britain, Italy and various countries of the Far East. Pronm the standpoint oi genera1 industry and business, taking the country as sl whole, there seems f5lt little to com plain of as the volume Of demand and sales is well maintain ed, and barrfr z some spora die unern- DLowrnent labor continues to be occu- pied at high wages. An these factors should have their influence II strengthening IF ar-1et conditions and harve undoubtedly tended in that df- rseti0n as ses.a by the higher prices for not a few industrial specialties urhich have been able to hold thei craA well against many conditions O. depression, not the least of which ha' bsen the very high rates for money
 Money and Exchange.
 It was undoubtedly dfsappoin tins to find that notwithstanding the higf rstiScount rates the reserve ratio a Federal Res rye banks had fallen of even thouGh only by a fraction, indi eathag as this did the remedial meas 0res applied had done no more t11a' merely to hold tho demand for com nlercial loans about stable as conn pared with reserve. Tine total ac eonmodations at Reserve banks in deed still SLOW a marked tendency t increase Ia spite Of this fact ana