The Bridgeport times and evening farmer., 1920-05-01

The figure of per cent has been practically normal for the week with renewals at around the same level, with call money in decidedly better supply than previously and with time funds apparently slightly easier. A comparative relaxation in gold move ments has left our specie supply but little disturbed, although small en- agreements, for the end of the week have been reported. The expecta- tions that have been entertained in many quarters concerning rates of discount in Federal reserve banks have not been warranted by any events thus far, save the sporadic ap- plication of the Phelan bill in some of the Western districts. Under this measure the reserve banks, with the approval of the Federal Reserve Board, may establish graded or pro- gressive rates of discount. Thus far any action under this measure has at all events affect only Q, limited number of banks. Authorities ques- tion whether it's effect upon current rates will be really of very serious importance, as compared with altera-
 ions in the underlying discount charges Foreign exchange has held it's own well, the severe downward movement in francs and lire having been checked, while sterling, in spite of heavy sales growing out of the Japanese situation has fallen only moderately during the past few days.
 Industrial Problem
 The practical termination of the railroad strike has been evident for some time past, but the developments of this week have made it certain. Public sympathy evidently was not enlisted by, the strike at any time in it's history. Both the fact that the strike was illegal, under the new Transportation act, and that it was violation of the agreements into which the railroad brotherhoods had entered tended to a1ienate such sup port as it might otherwise have gained Moreover, the general belief, whether well founded or not, that the men had no grievances more serious than those to which the general pub lie is subject likewise played a large part in the popular aFGtrde waaich in sured the collapse of this movement. The labor difficulties which seemed 1 likely to spread from the railways 1 into other branches of industry have not manifested themselves in acute 1 form, and there is a fair prospect of rapid improvement. Policies adopted i by the new Railroad Labor Board I have been favorably regarded by the 1 financial community. Export figures 1 for March, made public on Wednes- i day last, have shown an amazing maintenance of our export balance
 notwithstanding the falling off which is tbeieved by many to have been in i progress. While something is to be said for the enhancement of values II mains true that the total volume o1 exports, measured in units rather thar in dollars, is relatively very grea1 with corresponding demands upon oul domestic enterprises. The belief tha1 domestic factories are booked up fal l in advance is borne out by the lat est returns of the thrilled orders o1 the United States Steel Corporation as well as in other ways.
 | Stock and Other Dividends
 While there has been great de ve1opn1ent of stock dividends, and ] while many more are credibly re- ported to be in prospect, there ha: been a development of financial anc industrial opinion against the over working of the practice. Remarks O. Il Judge Gary at the recent meeting o1 2 the United States Steel Corporation Il were very much to the point in thi: |i connection and have undoubtedly Il been taken to heart by some indus
 trial managers who had been inclined
 to show a rather smaller degree O
 conservatism. Judge Gary's princi
 pal point was that with money a
 high as it is today a corporation
 would act unwisely were it to sub
 feet itself to the necessity of bor
 rowing at excessive rates by distri
 outing it's available funds to stock
 holders, while with taxes as they ar
 at present the latter would be bu
 little advantaged, since they woul
 have to pay so large proportion o
 their receipts to rhe government
 There has been little or nothing don
 in Congress to indicate that any o
 various proposals for the taxation o
 stock dividends with a view to cor
 recting their issuance was likely t
 become law in the near future. No 2, few of the dividends that have bee declared were apparently issued i the belief that unless advantage wa taken of tbis oDDortunity it might b