The Bridgeport times and evening farmer., 1920-01-20
:: Stocks Bonds, Real Estate, And Insurance -

money ruled high during the week, rates changing from to Is per cent with funds in comparatively short supply. There has been much com plaint of the action of the banks in thus maintaining rates, complaint which has been met by the positive statement that action was expected at reserve banks raising rediscount fig- ures still higher than they are at the present time. Such action was un- questionably foresha dowed as a possi : bility by Governor Harding of tha Federal Reserve Board some days ago but that it is now being considered has been authoritatively denied.
 The prospects, however, have tend ed to harden rates all over the coun- try and have to some extent cut off the supply of funds which would be otherwise available. There has been an evident disposition on the part of bankers to mark up rates as soon as financial operations seemed likely to show any considerable increase in volume. These factors have naturally proven more or less discoura ging, and during the first days of the week now closing tended to keep the volume of trading down to an un- usually low level.
 The present opinion is that this situation will be likely to continue for some time to come, and that in- proyement of it depends upon a good many factors relating to the demand for credit on the part of interior bor- rowers and bankers. For some weeks certainly the money situation will probably continue to control tho trend Of events in the stock market.
 Foreign Loans and Credits
 Two foreign loans, one in favor Of Italy, the other in favor of Belgium, have been announced during the past week. Discussion of the basis of for eign credits has also actively contin- ued. Representatives of British inter ests now in this country have been strong in their belief that very large assistance must be expended if EU- rope is to recover lost ground. The statement of Secretary Glass concern ing the condition of the Treasury to date, however, reiterates the opposing view furnishes good evidence that the present Administration cannot be looked to for much further assist ance.
 This state of things naturally tends to depress prices of foreign bonds in this market and to accentuate the
  must pay to have their wants pre- vided for here. The coming month will probably show more clearly than any period of similar length in the re- cent past how our export trade is likely to stand the effects of present conditions in foreign exchange, al- though as already stated, conditions np to date point to continuation of very strong demand in Europe for necessary raw materials and staple goods. With exchanges as they are 1t will probably be a good while be- fore much permanent improvement in the quotation of foreign securities can be looked for.
 The Outlook.
 The immediate outlook is thus un- certain, chiefly as regards political conditions, and revival will be great ly aided by the adoption of definite policies by Congress as soon as pos sible or at least by the furnishing of information tending to show what may be expected.
 Delay on railroads and foreign re- activity and uncertainty in stocks and investment securities of every kind. It is to be expected that a more or less tight money situation will be pro- tracted for some time to come pend ing the readjustment of credit which is inevitable as a consequence of the effort to contract obligations and re- store reserve percentages.
 Good business conditions tend to offset the depressing effects of politi- cal delay and credit contraction. Many shares and bonds are now at levels which make them bargains to the permanent investor and which indicate that those who can protect tn hernselves in buying against tenn porary movements for the rise will have excellent prospects of specula- tive profits in the long run.