The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1905-02-06
INVESTORS ARE
VERY CONFIDENT
WHICH PREVENTS SERIOUS AT
TACK ON vALUEs.--EASY
MONEY LOOKED FoR.-PRo.
FESsIoNAL RULE.
Special TO the Bulletin.

Special TO the Bulletin.
/ New York, Feb. 4.--Many stocks
are now at record prices, and meas-
ured by customary standards are as
high as conditions warrant Under
ordinary circumstances reaction
would be in order as soon as The Jan.
uary investment demand had been
satisfied. especially as rich operators
are known 10 have materially dimin-
ished their holdings and the big bank
ing interests are decidedly conserva-
tive in their views regarding the fa-
cure. But the entire market shows a
degree Of strength that Is surprising,
and which for the moment at least
sets aside the usual standards of
Judgment The fact is that when bug
iness is good and money is plentiful
ii is almost impossible 10 materially
daprcss market values although they
may be undnly high
investor are Confident.
Long continued prosperity has i'm
parted decided degree Of confidence
amongst investors, which prevents
any seriou attack upon values and
which has been strikingly illustrated
by the comparative lnsensihility Of
The market TO gold exports, TO the tar
III, and trust agitaions, or to the
threatened political disturbances in
Russia. Under ordinary crcum-
stances tho mnyement in Congress 10
give NE government power to fix rail
road rates would have created SER
ous alarm in wall Street; albeit there
is little prospect Of such legislation
becoming law.
The Beef Trust.
Another event that in ordinary
times would have unsettled values
was the Beef Trust decision, which
takes the ground thar the packers
business was Interstate commerce
and therefore under control Of the
National Antitrust law. If the Beef
Trust was engaged in interstate com
morce 20 are many Of our great in
.lnstrial combinations which possess
n monopoly in their line Of business.
and The application OF the law to
tAan may only be matter OF lnyo
cation The sweeping character Of
this ACCESSION and the wide extent of
lis application are not yet fully APP
preciatcd. Politically considered, II
is a good dec sion, as it will moderate
ii not remove. much of the hostility
towards capital, which has It's founda
ton in monopollstic combinations
and which has been the basis of many
OF the socialisic tendencies of the
day. Financ ally considered its eff
feet romans TO be seen Thus far iII
has been nil.
Professionals in Charge.
Much of the business on the Stock
Exchange has been III a professional
character and manipulation appears
easier for the rise than for the fall.
Money is plentiful and easy, and this
is powerful instrument in hands Of
cliques which single out first one
properly and then another for their
operations. Since prosperity has been
amply discounted and the Investment
demand. except for good bonds, is
snbsidng, the chief arguments for
advancing prices are dividend pros
poets of deals Of one sort or another
among railroads. These are the DO
tent influences on the stock market
at present--influences it may be no
ted. which in The past have generally
marked the climax in an upward
market. In the present situation,
however il would be premature TO
assert that the top had been reached,
for unless restraint of some sort
comes. either through a turn in the
tide of affairs or conservative action
by our leading bankers, we are al
most cure to see a revival of unheal-
thy speculation. The chief basis for
this opinion is that il business condI-
lions remain satisfactory the marker
cannot forever Withstand the infla-
tionary effect Of abundant money
The circulation of our national banks
mas been increased to s467.O00.01O,
compared with 1884 100000 this time
two years ago. Meanwhile our GOLD
supply has been largely augmented,
so that the nations monetary sup
plies have been increased out of all
proportion 10 the growing activity in
business.
Easy Money Looked Fer.
Bankers are now looking for very
easy money during tae next few
months. condition which must inevi-
tably affect security values. Already
some of our large institutions have
been buying good stocks and bonds
for temporary investment on the theo-
ry that they would yield better re-
turns than loans. Had we an elastic
system, such as Congress /
has been repeatedly asked TO give.
We should be spared the danger Of
such excuses, and the supply of
money. when snperabundant, would
contract naturally until the equilibrl-
I'M bet gcen supply and demand was
restored 10 a healthy basis. Such
si.uaiion win naturally facilitate gold
exports. although recent shipments
were mainly attributable 10 genuine
T1st., 80