The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-01-15
IS GREAT
Between Natural and Artificial In
fluences Grows Stronger
Each Week.

.
New York, Jan, 1.-THE strain be
tween natural and artificial Influences
in the stock market grows stronger
each Week. Artificial conditions are
all ranged on the side of still higher
prices and predictions are frequent
that such are to be expected. These
predictions, however. are usually in
ptred by self-int2rest on the part Of
| large holders who still have stocks
! TO sell or are engaged in important
negotiations which would be facli-
tafed by a rising market. They are
usually based, moreover, on conditions
which have been amply discounted.
SUCH q large earnings of the railroads
and especially OF the industrias.
which, through high prices and a
large volume Of business, are unques-
tionably making very unusual profits
/ On the other hand natural conditions
Wnich for some time have been kept
Iout OF View are working with in.
/ creased force towards reaction. Chief
Of thee influences is the money mar
| ket. Il is quite evident that monetary
Gpplies the world over are Aone TOO
LARGE for present extraordinary re-
qu ements, and this in spite of the
great increase in the gold supply ana
other forms Of currency. Firmer rates
than ncual have prevailed in all inter-
national money markets. bur at New
for', the advances have been ex-
IRENE for two reasons. First the in.
elasticity Of our currency system,
which prevents ether expansion or
ccnllactiGn, according to require
ments; and second the highly arti-
fetal manipulation3 Of those who con
troll the local money market Extor- |
Tomato rates have been enforced upon
speculatiye borrowers, which would |
not have been possible but for the !
tac' that our available supplies of
money are practical exhausted.
The question now is. what are the
prospects for building mp our bank
reserves? unfortunately they are not
very brilliant at he moment The
period Is approaching when funds
which were used for crop-moving pur.
poses should return to the east. In a
degree these funds are now being re-
turned. but not very freely, to New
ork For Instance. a very consider.
able amount Of money being held
III chicago, tied M as result Of re-
cent bank failures In the ordinary
course OF affairs these funds should
now be IN New York Again. the ac-
.Vlty OF general business throughout
ae west and even in the south tends
lpl only to delay the return move
he az Of currency but to a permanent
ieaontioA OF those funds IN the inter.
or, In consequence. II is very unlikely
hat New York will receive the usual
mount Of relief during February ana
laich that is generally experienced: |
md probably before the first Of April
ne loca money market will witness
eneWed spasms of stringency. Cor. ,
faeticn in loans may hus become i'm.
10 maintain. if not to
lten2then reserves. We have been
Ole 10 secure borrowings abroad.
nd in ease OF emergency such loans
ould not doubt, be materially ex.
anded. Just at this juncture, however -
ne export season for merchandise be. =
ms to wane. ana the prospects for
old exports are correspondingly in.
reased In all probability we shall =
cry sso1 be exporting the precious Q
FETAL and, while this need cause no
farm. 1t is anything but an argument
iaYor Of easier money The best
)rm Of relief would. Of course be Il
ONE measure of currency reform. C
UGH as suggested in my address. TO J.
ne Minneapolis Bankers association T
Minneapolis in June At that time
suggested a plan for elastic cur
'ncy ba ed upon bank as sets. which A
As already proved the best system u
" our needs in existence. Unfortu. III
ateiy however, congress is in no
God to consider currency legislation.
nd no action on tha question D. loi
hoped for until the country has
armed by bitter experience the dis
'irou- consequences that must fol-
~ ftHAilf|l -.44At w NtlA ffAtrriilA Niha
'iea'iiic and antiquatcl method.
As just said The money market is
he chief obstacle To- any further inn
'ovement in values. and there f. =.
rong probability that ere long il will 0'
: the chief factor in bringing about
reaction. Some regulator is needed u
n he present unwholes0me specula-
We fever. and high rates fer money
q unqu siionably one of the best T.
'rrectiYcs When investment securi- lC.
ss arc selling on a : and I per cent. { J.
isis they cannot long remain az that r
andard in The face of persistent >
6 per cent money rates If money
les are high stocks must decline
a sponding ieyel-sueh being =.
e Of the immuiable laws Of finance -
lich has never been persistently y,
8latsd without serious consequences w
ld. since there arr no prospects OF u
aterially lower interest rates for
ire time 10 come II follows that