The Cairo bulletin., 1905-09-04
SHOWS A CAUSE
FOR ENTHUSIASM
HENRY cLEWs PAINTS A VERY
ROSY VIEW OF TIE OUTLOOK
IN THE BUSINESS AND FINAN-
cIAL WORLD.

dble pieuiSllunS IN the ldtlef instance
have more than been justified, Both
these influences will remain import
ant fundamental factors in the finan-
cial situation for some time; butt
their formal consummation removes
them as favorable influences from the
immediate speculative situation-ren-
ders them, in fact, bases for profit
taking sale9 by the professional con
tingent in the market Professional
Wall Street deals in the future: 1t
discounts the influence for goul or i'll
of future happenings, ana when these
happenings actually mature il prompt
ly closes out its commitments-u
ually at a profit-hy turning them over
to interests who are not 90 far-sighted.
The markets reception of the peace
agreement is one of the most strik-
ing Of recent illustrations in this d.;
rection; but it is by no means surpris.
ing, in that professional Wall Street
merely used common eense and opera
ted on 1t.
With the elimination of these two
influences the immediate future of the
market may be considered to remain
with the disposition of the market
leaders to dispose of their accumula-
tons of stocks at a time when inn
mediate money prospects are not fa-
vorable for such a distribution. There
remain as uncompleted developments
the reported railroad deals which may
be forced to the front as further i'm
pulse for higher range of values on
which to sell, but best information
seems to preclude sarly developments
of this character, and so far as they
relate to the formation of formal
holding company TO take physical CON
troll Of the great railroads and convert
them into a single transcontinental
ystem- which is the more general
form Of the reports respecting railroad
deals-the experience of the Northern
Securities form of control will certain
ly influence extreme caution i'm enter
ment, espe cially when interchange of
ownership answers virtually the same
practical purpose and is not open to
| legal attack. Moreover the formation
of such transcontinental company at
this time would mean an invitation for
a recrudescence of the recent pres..
dental and more or less popular de
mand for legislation contemplating
| government control Of railroad rates
a situation to which our great railroad
minds are certainly fully alert. The
possibilities Of pending railroad con
solicitations may therefore likewise be
dismissed as influences in the imme
| diate situation.
The monetary situation in connec
ton with the palpably high range o
current quotations for securities be
comes the pivotal influence of the i'm
mediate situation. The currency move
ment TO the West this wesk has beer
on sufficient scale 10 indicate at THU
early date that New York bank re
sources will be severely taxed tlur
ing the next few weeks; ana that an,
unusual demand for banking accom-
mediation resulting from speculatiy
activity would mean an advance il
money sufficienth to constitute a dit
tinctly adverse market factor Til
high eminence quotations have reach
, ed does not, in board sense. repre-
sent general outside speculation 0
investment, the important speculatv
interests have been easily able t
put prices up and establish for then
selves large paper profits. They hav
4 received what may be terinell negatiy
\ assistance from Investing interest
generally as result Of general 81
thusiasm resulting from promise {
: Iunexampled agricultural prosperity
Y this assistance has manifested itse
X more in an indisposition to sell tina
!, the development Of an outside inves
X ment buying movement. The prin
factor remains, therefore, that III
X large markets interests are hoIdin
4 large amounts of securities whic
they are DESTROYS of distributing :
4 soon as sufficient buying power
available. But 1t IL hardly probab
!, that these interests win attempt
/ general distribution al q time mon,
& Is seasonably active aud strong III
/ der these circumstances the outlot
o favors period of conservative s,i
+ port for the market until the possib
b stringency cnds--a support only 81
, iicient 10 prevent disastrous break
$ but at the same time not intended
}. force additional important advance
In turn this offers favorable ma
kct with active fluctuations Tor ira
ing purposes.
u Already there has been d modera
i. calling IN Of Wall Street funds
IA banks more particularly identif
4 With mercantile interests. The
Or hanRs find an increased demand 1
e, accommodation in their own parti,
M lar liuids, they find manufacturers 4