The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1905-10-02
STOCKS SHOWED
MONEY STRAIN
HENRY cLEWs TELLS OF The EF,
Feet OF THE HIGH RATES
FOR MONEY ON GENERAL ri.
NANcIAL CONDITION IN HIS
WEEKLY LETTER.

change speculation has this week re
iieeted the cumulative indications OF
strain in the money situation. fur
1 Their hardening of call rates has taken
iplaee, but, confidently. evidence has
developed Of the determination OF i'm
portant banking interests 10 keep the
| situation under control and proven.
as far as possible undue alarm and
| llqnllation such as would naturally re
suit from spectacular, even though
Temporary, advances in call rates The
additional engagements or gold Tor
import under conditions that on the
surface do not indicate profit suggest
that the movement has Indirect COR
nection with stock market operations;
and that the large clique3 ana opera
tors who are the holders of the great
bulk of the floating supply OF secu1-
tiles are using every possible meaa-
to prevent a severe recoil during the
season of monetary activity from the
high prices TO which they have ad.
yanced the general list OF Stock Elk
change securities. The outside pub
lie contra1istnction 10 the pro
fessional manipulators and speculative
interests arc not ia the market as in
yestors and have not been interested
as such during The recent advance.
Their only activity has been that OF
traders to catch fluctuations; and the
N ,af "a, .f,.4r /.
market at its present high level lies
with The cliques and other profession
al interests already mentioned Their
efforts to support the market or their
efforts to scientifically unload in the
face of the money situation that Is now
at hand, promise a period of active
fluctuations for some time to come.
and suggest the necessity of extreme
caution III operations on the buying
side ana the adyisability Of taking
quick profits. Extreme conversation
can hardly at this time be too strongly
recommended in trading, especially hi
stocks thai are now al record making
prices, as Che high and mighty" may
fall like other mortals. SpeculatiycIy
held stocks at abnormally nigh prices
-ilt prices not warranted by dividend
dfsbnrsements-are for obvious rea-
sons particularly susceptible to the
adverse influences of difficult banking
accommodation
There have, it is true been active
ami successful bull campaigns when
money has commanded a much higher
range than that now current. AT tue
same time it is hardly probable that
q reimbursement of accounts 10 higher
money level can he accomplished with
our a period of active liquidation marx-
ing the progress OF such readiustment
The Immediate outlook cer;afniv does
not favor a return to the redundant
money conditions that have been eur.
rent thus far this year It would
not be surprising if a still higher call
money rate should obtain during the
coming week The Bank Of England.
as was expected, advanced it's mini
mum discount rate on Thursday to
per cent, which figure has not been
current since September. 1903. This
action may be regarded a further
handicap on the gold movement: at
any rate ii will nead materially
higher money market here to attract
the metal The negotiations that are
reported for a joint loan al Paris and
Berlin Of $150Q00,a00 to Russia WIN
necessarily Influence a curtaiiment Of
outstanding French and German funds
ana while It Is quite true that both
these centres were more u. lass pre.
pared for financing an indemnity pay
ment by Russia of considerably greater
magnitude Than the loan now propos
81, the significance of The current mo-
goiiatlons from It money outlook stand
point is that funds that were consid
cred released when the indemnity was
waived must again be accumulated
In addition TO the check upon gold re
lief the local money market dhr;ng
The immediate future must experience
the contraction required for the regu
lar October dividend and interest dis
bursements, Of which something like
$75,000000 to $4,000 600 are payable
through New York financial institu.
ions. In this connection II Is of in
ferest to note that the dividends nay,
able by distinctly Industrial concerns
this October exceed those or last wear
by something like 100000. Anotn
en- source of contraction Is the nav.
net which Is due today Of $25 900 900
on account Of Pennsylvania convert.
Dles, and similar payment OF $4,000.
200 on account of the Atchison The
third installment OF $50, 900 on ac.
count OF the Japanese loan will become
due about the middle Of October. and
there Is reason to believe a very con
siderable part Of this payment will
promptly find It's way to London. which
will naturally have the effect of put.
ting up exchange rates as well as tho
money rate here Our banks are al.
ready severely extended. and there Is
little In sight to suggest any immediate
relief from current forced liquidation
OF Wall Street loans. which ~ factor
|suIficiently powerful 10 cultail opera
inns IN n LARGO nraln Nv a,v ~ ~,