The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1905-10-09
FAVOR|NC GOOD
TRADING MARKET
IN CONSEQUENCE OF PROMISE
OF ACTIVE FLUCTUATIONS
WITH OPPORTUNITIES FOR
QUICK PROFIT ON ACCOUNTS.


New York, Oct. S-No important
change, speaking broadly. has deyel-
oped in the financial situation this
Iweek. The money marker has, if any.
| thing, shown Increased strain, cali
rates, as was expected, exceeding the
hlgh rates OF last week; and there is
nothing n sight promising a return
TO the redundant condition to which
he market had become accustomed.
On the other hand. the large asso.
ciated interests and individual opera.
tors, who are by far the largest hold
ere OF the Heating supplies Of securi-
Ties, are furnishing support-at any
rate 10 the extent of preventing
severe or uncomfortable Teces sions
from the high range to which thew
have succeeded n advancing the gen
er2l market. With such strong evi-
dance OF support, and, moreover. with
sueh a sentimental as well as practical
aandicJp as mat contained in the.
very general prosperity in agricul.
tural, industrial ana commercial cir.
cles throughout the country, the bear
interests are without a formidable
leader; and operators who have
sufficient courage 10 undertake short
commitments do SO with caution and
are always prompt to cover on slight
proVocation. TIE market of the
ihttlle-both the immediate and the
moderately remote future de-
pend upon the ability of these large
professional interests to successfully
Withstand period of more or less
financial strain and of adverse. or at
any rate unsettling DEVELOPMENTS in
she national leg slit We situations
particularly agitation for tariff
changes and federal supervision of
railroad rates.
| So far as the money situation II
concerned there IS no question but
what our associated banks are fully
extended and that the trust com.
panies-W which in perhaps a majority
OF Instances are banks under another
name--are over-extended. 1t seems q
perfectly safe conclus on that VITA,
call money ranging in the vicinity OF
per cent the TRUST companies will
nave Withdrawn as far as possible all
their funds they had placed in the
banks all rates predicted upon large
supplies. These Withdrawals have in
tuhn neceasitated extensive curtail
ment Of loans by the banks in order
to maintain their necessary reserves.
| The suggestion at the annual meeting
Of the Clearing House that trust com.
panies resume t1rsir relations with
the Association Is one that conserva-
! live banking interests can heartily
ndorse, especially il, accompanying
| the resumption, a system sat sfactory
TO the trust companies be devised
whereby weekly reports of the Goa
dition of these companies become
/ available At the present time with
The reserves Of the Associated Banks
representing the chief financial
strength of this centre, the situation
is certainly not favorable for re.
turn to the recent low range for
money In fact there are not a few in.
dicat onsI that the stock market must
4 adjust itself to a higher range of in.
definite duration, and the process OF
| REIMBURSEMENT is necessarily one re
| curing a ,neasurable tnlQunt oi
! LIQUIDATION. There is 10. instance
IN inducement 10 carry ecurit q
yield ng 3a4 per cent when baniin:
4 fac lities are available at 2aS per cent
4 But when the latter rise Is 7aS pc
cent. the inducement to CARRY tn,
same securities correspondingly de
creases.
The current scarcity of money i
by no means the sole result Of th'
ordinary demand for moving the crop
These demands are necessarily large
than usual because the crops them
selves are much above the average
But the demand for money In the met
camille channels, rejecting the pros
perity os the country---the prepare
I ons for increased business to resul
from this os3erity-Tepresent
strain much more lasting than the OF
binary seasonabe demand for GRO
funds. With this prosperity there ha
developed a corresponding season d
extravaganza, a season Of increase
demand for Injuries that in view {
the extraordinary demands for fund
In the worlds money market {
which New York has become such Il
important component, will be quit
! suffic enr 70 maintain the value {
money on a much higher bass tina
has recently been the case The In
: ports of luxlries are quite significas
in this direction the monthly repo
/, of the Appraiser Of the Port of Ne
York, for instance, showing an i
crease Of, in round numbers, 50, 90,
600, made up in great part Of luxurie
Ia the appra' sed value Of importation
for the month of. September The
was, for example, an Increase of mo-
than $13oo.0oo In the import val,
Of precious stones; ll9 AUTOMOBILE,