The Cairo bulletin., 1905-11-13
0NEYCOND|T|ON
CONTROLS MARKET
WE'RE 1T NOT FOR HIGH RATE
OF INTEREST 1T MIGHT REV
Ell IN DANGEROUS BULL
SPECULATION.

New York, Nov. l2,-Monetary con
dit'ons control the stock market Just
now and prices are declining in con
sequence Were il not for The present
high rates Of interest we might Dc
revealing in a possibly dangerous bull
speculation With call money quoted.
however, between and IS per cent.
and scarce at that the inducements
for operations on the long side are
naturally suspended Bank reserves
are much depleted while loans are
greatly extended and. legitimate de-
mands for funds be ng heavy with The
prospect of increasing rather than
diminishing. there is little money at
present available for speculative pur-
poses in the stock market Little, if
any, aid can be expected from the
government, and the only remedy in
sight is contraction of loans IN or
der TO meet other urgent demands
Such contract on of course falls most
severely upon purely speculative OPP
erations and liquidations in stocks
naturally follows The local money
marker is still threatened with gold
exports, and large sums are due to
Japan on account OF its loans. which
will be transmitted at the first favor
able opportunity In fact there is
strong presumption that remittances
for this account are already being
gu te freely made. The Improvement
in the Russian situation also streng-
thens the probabilities of a large
Russian loan. Rumor stated that this
had been postponed until February or
March, but should the government sue
ceed in restoring order and putting
proposed reforms into early effect the
loan will probably be placed before
that date. With foreign bankers 1t IS
merely a question of an opportnne
moment for placing this loan and,
being already heavily committed to
Russian obligations it is to them in
terest to strengthen the Russian gov
eminent financially without mneces-
sary delay For this reason the for
eien bankers may begin TO draw upon
America for gald as soon as our local
abates. Paris j., strong
from monetary standpoint and
could readily provide its STARE OF
subscriptions. London, however,
might want assistance, and the Ger
man banks win certainly be obliged
to strengthen Their gold supplies at
our expense. So far as New York Is
the postponment OF the
loan il an advantage. nasmuch as IL
gives ample time for preparations, az
well as permitting the natural return
Of funds from the interior to this
center
During the next few weeks firm
rates must be anticipated for money
the market for which will be newt
ably eXpCsed to sharp man pulatons
owing to the actual scarcity of funds.
Business continues active and a high
level Of prices for commodities as wen
as securities tends to aggrayate The
since larger sums are re-
CURED To perform given service. IN
terror currency movements are some
what conflicting. Funds have been
returning after crop-mov'ng require
mcnts. bur on the other hand, large
shipments have been made TO the in
terror for mercantile and other pur-
poses. In the ives, h.Sa rates for
money and great act witty are repor ed.
larg sums being locked up in import
ant deals and real C ate operations.
The local election had little effect
upon the stock market In any event
lis influence must have been confined
10 the municipal service corporations
Or. those which might possibly be
Brought within sight of municipal
and their importance is
limited. So far as New York is con
cerned there is no Immediate prospect
IF thi contingency The municipal
movement has undoubtedly
been tremendously ST mulatcd by cor
abuses and Shortcomings, but
The results Of the election in no wise