The Cairo bulletin., 1904-11-07

SATISFACTORY
is THE CONDITION AND OUT
LOOK OF THE STOCK MAR
kET, SAYS HENRY CLEWS - NO
CAUSE FOR WORRY OVER
GOLD EXPORT.
Special to The Bulletin.

GOLD EXPORT.
Special to The Bulletin
/ New York, Nov 5.--October wit
messed an active stock market, witt
many securities at the highest poin
of the year November opened witr
reactonary symptoms which caused
general profit taking and a recession
of several points in the active shares
At times The market was excited and
fevorish, ready to respond quickly to
either favorable or unfavorable deveI
opments One thing is certain, tn
boom" tendency has been effective
~ checked, leading banking interest
having openly opposed such wild spec
ulation as brought en- the crisis OF
1902 and to their efforts must be
attributed the first signs of reaction
The next causes Of reaction were the
war scare between Ruslia -aaA Enc
land sollowelI1sy unexr\ted gold
shipments These influences induced
"a change in speculative opinion, and
in place Of a one sided blindly opti-
nistic and dangerous bull market We
now have a healthy division of op.n-
.cn that promotes both activity and
1trength. The market was rapidly
becoming topheayy and extremely
hazardous, but the creation Of a
beayish element sufficiently strong to
search out the weak spots and bring
in a fresh buying cement ma erially
improved The ndertone Of the spec
alatiye situation. giving the market
! breadth and strength which was
previously lacking.
Future Outlook Cood.
As to tho future Of the market
granting all that has been claimed re
garding the effects of q profitable
hGryestt, of business improvement, of
easy money, of features, such as the
activity in iron and copper, it must
be recognized that these have been
amply discounted. On their merits
he majority eff good stocks are real
" high enough. some in fact are too
high, and bargains are scarce If not
entirely absent At the same time
tho speculative spirit has been thor
oughly aroused and is being sl5iiiuily
Iursed by hoe who sti have stocks
IN plenty to cell The big banking
houses are also interested in prevent
ing any serious decline, There is an
excellent investment demand for good
securities, demonstrated by the rapid
absorption Of recent bond issues aud
affording bankers desirable oppor-
tunity for carrying out long deferred
plans. The next fe wweeks may CON
of new Issues if conditions
continue favorable, so tina. the opera.
tons of our leading financiers natur-
ally mako them as much averse to
any important reaction as to any ram
pant speculation. The market thus
seems to be in an exceptionally sat.
condition, having the dou-
BILE advantage of national prosperity
and the restraining power Of powerful
bankers who are more vitality inter
ested in legitimate and successful ma.
tional development than in hazardous
speculative enterprises.
M Reason 70 r Anxiety over Gold
Experts.
Some uneasiness was caused by the
renewal Of gold exports. So far a. che
actual loss of the metal is concern
ed there is no cause for anxiety. Our
present stock is unusually large and
We produce abou. sS0.00,000 annually,
TO say nothing of receipts from the
klondike and Australia. The worst
that could be anticipated would be
temporary reduction of .he bank re-
serves and a hardening of money
rates. the bitter contingency one
that would not meet with much dis
approval in conservative banking cir.
cles.
There IL another view, however. of
80 unusual movement at this sea.
son, when the supply of produce bills
ough TO be large enough TO prevent
gold shipments. and that is the strain
imposed upon the Paris and Berlin
money markets by the Russian war
loan. Paris is already loaded mp to
the brim with Russian bonds and ex-
measures have been made
to proven. panic there in case of
defeat. Government regula-
tons now prohibit future or short
sales in order 10 prevent a decline.
but this operation may easily prove
an elemen. of weakness. inasmuch as
there will be no purchases on the
short account to support the market
in case Of break. The foreign stu
alton is one that requires close wa.ch-
ing fer while our own market is in
good shape, q crisis on the European
bourses would certainly have an in
furious influence here.
Prospects fer Active Market.
The prospects are for an active
and irregular market. with possibly
vide fluctuations. Higher prices may
prevail before the top is reached. but
values are already on high level and