The Cairo bulletin., 1905-04-17


bankers such depression can be avert
ed for some time to come, and need
hardly to be taken into calculations
at the moment.
High Level In Railroads.
II would appear unreasonable. how
ever, to believe that railroad securi.
ties can be carried to much higher
level with safety to new buyers. Val.
ues are already so high az to yield
very unsatisfactory returns on capital
so invested; and every advance in the
money market however small ntensi-
Ties this condition. Many owners can
now realize prodigious profits by dis
posing of their holdings at present
prices. hence the temptations to real
lie ON the part of those who own out
right are very unusual; and since en-
terprise is expanding there is an in
creasing disposition. to part with good
stocks and invest the proceeds in more
profitable directions. This explains
the remarkable movement of capital
into real estate, which. as we have
previously stated. sometimes marks
the approaching elimination of a
boom. To this class Of realizing must
be added that of the big capitalists
who, during the depression two or
three years ago. took on large lines of
stocks which have not yet been salts.
factorily distributed, For these rea-
sons it seems unlikely that railroad
securities should continue to go up
indefinitely PROFESSIONALLY strong
efforts are being made to advance quo
tations, particularly on rumored deais
and mysteries, but such movements
must be watched with reserve as they
are likely to be accompanied by con
siderable realizing and sharp reac.
tons Such conflicting Influences
mean an active, irregular, and conse
quently good, trading market.
lndustriaIs Will Bear Watching.
The industrial section of the mar.
ket will require still closer watching.
Here speculation promises to be more
rampant and more dangerous. The
extraordinary rush in the iron trade.
in which previous high records Of
production are likely to be surpassed,
is a very welcome evidence of reyiving
enterprise and business activity, and
has already been largely discounted
by the great advance of Steel securi.
ties. Everyone, however. is quite ia.
miiar with the violent fluctuations in
this industry. which is always either
prince or paper" as Mr. Carnegie
once truly said, so the stability of the
advance in this line of industrials is
yet to be demonstrated. Other in
dustrial concerns are with few excep-
tions doing well. Their volume OF
business is large and generally on a
profitable basis. Unfortunately. how
ever. these combinations are in many
cases badly overweighted with water
ed stock. OF course. so long as bust
ness is profitable, speculation in these
issues is sure to be active. yet IL mus
be remembered that they constitute
the indigestible mass which brought
on the last period of depression ant
contraction Il Is probable that tbs
speculative fever which is now being
cultivated may be chiefly devoted t.
such issues with the intention Of dir
tributing lsige holdings which hav,
hitherto been unbroken. This section
of the market. therefore, is likely {,
be the one to show the widest fiuctua
tons. the largest profits and the lar
gest ultimate losses.
Business Outlook Promising.
The general business outlook 4
promising. Bank clearings show an IN
usually large volume CT business. Tit
Total clearings at all cities in the Unit
ed States for the month of April ag
gregated about 81 $4,000. 600. an in
crease Of over 50 per cent above TIL