The Cairo bulletin., 1904-10-31
MARKET NOW IN
FEVER|SH STATE
NOT A FEW STOCKS SELLING
ABOVE THEIR INTRINSIC VAL
uE, BEING OUT or Proper.
TiON TO CONDITIONS.


too rapidly and the temptations t,
take profits became irresistible. Tht
market leaders were also disposed Il
| check the advance and prevent specu
lation from becoming too indiscrimi
nate and rampant. As usual, some i'm
portant event was required to cause 9
general turn in the market, and in this
instance 1t was unexpectedly furnish
ed by panic-stricken Russian sailors
bent on destroying few harmless
fishermen. The tension which this in
ciden. developed between Great Brit
| ain ana Russia was, Of course, a seri
Gus matter, and would mean war If the
just demands Of Great Britain for ap-
ologles, indemnity and punishment
were not complied with. There is lit.
tie doubt, however, that wise counsels
will prevail and tina. Russia will make
ample reparation for the offense,
though the delay necessary to proper
investigation may be rather irritat.
ing to the injured party.
Shock to Market.
Another shock to the market was
the rather unexpected export of 49,.
100000 gold to the Continent. Some
OF the big European banks show a dis
pletion Of their goll reserve that re-
quires replenishment, and 1t is but nat.
ural that they should draw upon the
handsome surplus of the United
States. Fortunately we can easily
spare few millions without injury;
in fact, moderate efflux would be
beneficial, inasmuch as it would tend
20 correct the abnormal ease of money
which has prevailed here for some
months past. In consequence of gold
shipments had little influence upon
the local market, Notwithstanding rn.
mors Of another Russian loan in Eu-
rope of s270,0O0,oO0
In Feverish Condition.
At the moment the market is in
feverish and excited condition. Not
few stocks are selling above their in
tringic value, rises OF 80 to 40 points
being out of all proportion to improved
conditions, either present of prospec
tive. The earnings of the Steel Trust
for the last quarter, which were about
one-half the amount of two years ago
showed that the rise in that stock
was largely based on anticipation, for
while there has been most satisfac
tory improvement in iron trade con
ditions during the present month II
was hardly sufficient to warrant
doubling of prices since the low fig
ures of 1908 for the common and pre-
ferred. Later on conditions may jus
tify these prices.
In number of other stocks the ad |
vance has also been largely anticipa. |
tory, demanding not only caution but |
close discrimination. Thus far the ad.
vance has been very uneven, so the |
probability is that the cliques vii
gradually drop the high level stocks
and turn their attention to those
which have been relatively neglected |
Movement Exhausts Itself.
There are also indications of the
present movement having exhausted
Itself. Good buying develops on all
harp declines and stocks have no'
yet passed entirely from strong into
weak hands. The public have been
)uying much more freely, it is true
1ut no small part Of the recent activ
ty has ben artificial and the big in
erests still retain large holdings
which have not been marketed. Nc
serious decline can be expected while
interests are on the ascend
ng scale. Our farmers are relatively
ich; our manufacturers. especially of
ron products, are receiving increased
,rders; our railroads will soon be tax
ID with freight: our banks are strong
md well supplied with funds; our
,ank clearings prove increased activ.
ty in all parts of the country: our
abroad earnings are growing: our
abor troubles are less serious, and
'ur politics are in a quieter state than
or many years. There is nothing.
therefore,, to cloud the financial hor-
zon just now unless 1t be an ou.-
freak OF wild speculation. This our
hackers are wisely en-
leavoring to prevent not out Of phil
lnthropic motives. but because il
would interfere with other legitimate
,lans. There are important negatia-
ions under way. and there are i'm
,ortant new issues yet to be fioa.ed
{ will be to the interest of our great
'ankers to use their power as far as
hey can to prevent excuses. They
wish an active. strong
nd sustained market for some time
o come In this desire lies the chief
present strength Of he situation. A.
he market advances. however. the
isk of reaction increases. and the
eclines Of the last few days will dc
mere TO improve the situation and al.
ay feverishness han anything else.
rom now on speculative operations
will have TO be conducted with in
reasing caution. and purchases should
My be made on pronounced declines.
The market is likely TO be particular
y sensitive to the Anglo-Russian en-
although a peaceful ad-
ussment can be. confidently relied
Ipon-
HENRY CLEws.