The Bridgeport times and evening farmer., 1920-01-27

fortunately tended to increase the diff faculties already known to prevail among the members of the conference committee. Early reconciliation of these conflicting views should be ef- fected in order that there may be no excuse for further Congressional post ponement.
 Meantime the demand for railroad stocks, which under other circum- stances might have materially re- vived, is evidently being held in abey- ance. Somewhat similar effects are produced in the case of the industrial shares by doubt concerning the tax alton policy of Congress, which Is now recognized by many good au thorities as being one of the most serious barriers to the accumulation and investment of much needed sup plies of capital for reconstruction.
 Foreign and Domestic Credit.
 A renewed decline in foreign ex- change set in practically with the beginning of the week and has con- tinued quite steadily since that time. This downward movement has of course been most notable in connec- ton with sterling hdl1s, a new low record in that branch of the market having been established at 360 3-4, aI- though later recovery has brought about a slightly better tone. This however, has been more than par alleled by some of the continental ex- changes. Those who have been buy ing heavily of marks, lire and other currencies have been gly disappointed.
 The downward movement in all these exchanges is due to two factors
 |, 1.I.s- American goods, financed it would seem largely by exporters direct credits, and actual depreciation of foreign currencies as illustrated by the rising premium on gold in Lon don, due largely to the continuous decline in the strength of foreign cen tra1 banks.
 Locally the situation is of course aggravated by the fact that Congress shows so little disposition to take ac- tion with respect to the treaty-a step which is essential as funda- mental basis for any real improve ment in trade and exchange condi- tions. From the standpoint of the securities market, the low quotation of exchange necessarily has a very bad effect upon quotations even of the highest grade issues, while 1t ren- ders investors abnorma1ly shy con- corning the purchase of any new of ferings. Indirectly, the result of these low quotations Is also discour- aging In various classes of domestic issues. Weakness in the shipping shares and in the stocks of companies largely dependent upon the export trade for their prosperity, may be due in no small measure to doubt con- cernning our future business with European countries, growing directly out of the disappointing position of foreign exchange.
 Unquestionably the market regards the discussions of export credits in the United States thus far as of little or no significance, the plans pro- posed being wholly inadequate to the needs of the situation
 Trend of Events.
 While business on the Stock Ex- change has been at an abnormally low ebb for several days past and while prices have been correspond ingly depressed many shrewd inves- tors are recognizing the unusual bar gains that are now held out to them | in various directions.
 Liberty bonds, which have been | under some pressure for several days. 1iHFe 1eo|heu e punt at WHICH lnelT 1 yield Is extraordinarily attractive, 1 and the same is true of many of the very best classes of foreign securities. 1 It would be hard to see how the best 1 railroad bonds could fail to be worth 1 less than they are now bringing in al- | most any contingency affecting the 1 transportation system.
 l We must have railroadS-and they must get capital upon some basis. In | some other departments of the mar l ket also the opportunities for the
 wise and profitable application of 1 funds are exceptional. Optimism ex- hibited now in 8 practical way vii! | probably be largely rewarded when
 the present temporary difficulties are l overcome,