The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1905-09-11
MONEY SITUATION
POTENT FACTOR
HENRY cLEWs TELLS OF THF
MAIN FACTOR IN STOCK MAR.
KET IN HIS WEEKLY LETTER
TO THE BULLETIN
Special 10 the Bulletin.

nor me present, that professional Wal
street operates in connection wifi
The money supply as with all othe,
important influences. While interast
hates have already shown indications
OF hardening, The large shipments 81
currency to the interior in connection
with an already strained condition
OF bank reserves must naturally ex
Ieft an Influential effect upon the AT.
titude OF lenders during The immedj.
ate future. The great volume of the
crops viii require a corresponding
volume Of funds 10 handle them: ana
unless the large banking interests 50
manipulate matters as 10 produce a
condition of artificial ease. Ii M very
evident that higher ami sustaine j
range of money rates is al hama
The first natural result under such
circumstances and which has alreatle
shown itself on q moderate scale fe
the liquidation Of oalns by banks to
secure funds to meet the demands az
also to Themselves participate in more
profitable figures than are now avail.
able, and which viii probably be
even more attractive as time proceeds
This IN turn means d prompt read
justment Of Wall street call loans
and II this readiustment does not ex-
iensive sales Of securities 1t certainly
does mean that the large pools and
me big operators will not add very
largely g their present accommodations
AZ anything like current prices. The
situation, therefore, is one that calls
Tor extreme conservatism and sug
gets the wisdom Of taking advantage
OF substantial rallies hereafter ana
only huNlng on substantial breaks
ana thsn merely for quick turns.
Distinct evidence has been shown
during the week OF liquidation BY,
some OF the pools that have been
most prominently operating for the
rise; and what seems Of greater i'm
portance Is the fact that very little
support has been given the market by
either the banking or large specu.
latlye interests; the former, in fact
appears rather to favor a reaction of
tho high level as q desirable develop.
ment, 90 the groun,l that there has
been present in the market spirit
OF initiation that has carried prices he
yond The range justified by present
OF prospective dividend distributions
The advance in therBank of Nm glanG'4
discount rate on Thursday first
advance since 1908 lin connection
with an advance also in The omen mar.
ket rates in London and Paris Il
certainly an indication of distincs
ana general hardening in the worlds
m pey market, in which New York
AZ the present time II one Of the
most important constituents The
higher bank rate means. of course
check upon the foreign credits upon
this side There Is already a large
amount Of foreign capital employed
IN local stock exchange circles, which
capital will in great measure be liouj.
dated by the export of cur cotton and
breadstuffs, but the firmer markets
abroad will probably prevent any fur
ther loans here-at any rate until
local money rates become more al
tractive--and there Ia a distinct prob
ability that part of the credits al
really here may be Withdrawn. Re
ports have been current that Russia
Is negotiating an early loan. though
it seems difficult to believe thai the
negotiations contemplate transac.
tion calculated to withdraw funds In
the Immediate future Ittis more than
likely that any loan that may be me-
gotiated In the near future will con.
template the transfer Of funds under
more satisfactory conditions than Ok
LIST at present.
The outlook taking a long.range
view at the situation, may be consid.
cred favorable for a traders market,
with many opportunities on either
side. When tho money situation
clears the regular session Of congress
will be in calling distance. even
should the president not convoke an
extra session before that time. II is
not al all probable that any unwise or
rmilcal legislation will be accomplish.
cd at the first session of congress
either affecting the tariff schedules
or railroad rate control, Nevertheless
both these subjects will unquestionah-
~ be agitated, and The natural in
iluence viii be to promote on the one
hand caution In Industrial and mercan
tile circles and on The other hand
some baclSwardness among investing
intercsis in purchasing securities Of
railroad companies when their only
source Of rcvenue--the payment they
receive for transportation---is subject
TO possible political influence. So
far as The tariff n concerned, the best
advices Indicate that no radical legis.
latian win he altempteh--;hat II. leg.
islhtion that would require the con
struction Of an entirely new set of
tariff schedules Whatever * accom-.
pushed Will | have reason to believe.
pe IN the direction Of reciprocal ar.
rungcmnttg with forelru pfrntrior.