The Cairo bulletin., 1906-11-26

|NiiN poti tuIl anu lllit lnOlltN HdN'
been ruling at very high rates and M
material improvement is expected I'M
y I'll January next. Bank reserve!
usually run down during the last 81,
weeks of the year. and ii remains tC
\ be seen whether this movement viii
Y be repeated as usual. The high rates
for money last week attracted consid
cradle sums from the interior, so that
this week reserves should show some
Improvement unless demands from
other sources have offset this influx
: from the west An easier state of af
fairs prevails in the foreign markets
and there is less talk Of a further ad.
vance in the Bank of England rate
a better feeling having followed the
action OF the Bank Of France since
a portion of its gold went to London
where the pressure was keenest
American credit in London has NOT
suffered by recent events; and. while
there has been some curtaiment of
our obligations, there has also been
little difficulty in renewing the bulk
va iuE lO1llNt 0tllI TIE IpISlDH IN
the worlds money market is almost
universal, and periods of stringency
may be expected here before rates
tend permanently downward
Conditions in the stock market are
favorable for moderate fluctuations in
Iither direction. Whatever the natural
conditions may be, ii should not be
forgotten that stocks are still largely
concentrated In very strong hands.
large moneyed interest accumulated
heavy lines of stocks during 1903 for
the purpose of checking the down
ward movement The bulk of these
stocks have been steadily held and
| in many cases show tremendous
| profits: their holders have not, how
ever, thus far realized to any great
extent; the favorable conditions of
business and the unusual prosperity
attending railroads having induced
them to hold on with unusual tenacity
in spite of conditions in the money
market and the fact that prices were
already unusually high. II is not prob
able that these gentlemen are un.
aware of the fact that in the long run
natural influences will have their
sway. For the time being. however, |
as the chief holders of securities they
retain control Of the situation and
may do SO as long as nothing hap
pens to disturb present equilibrium, |
or as long as no important interest |
succeeds in unloading. II is quite true
that there has been a quiet distribu. |
ton OF stocks Of more or less import |
ance. but it has been obvious that any
unusual effort to sell preciptated an
undesirable decline and quickly turn |
ed the current A retrospect of the |
market since last August will show |
now comparatively narrow have been |
the fluctuations and their see saw
character. Until these big holders
succeed in distributing a good share
of their surplus, we are not likely to
see any radical change in the market,
and SO far as their power is con
cerned, it may be used in the direc-
tion of higher prices, although ma
hNi al LNiidthfitH arc III tit otHtI III
rection.
In general business circles a great
deal of caution is exhibited. The de-
mand for nearly all kinds of mer
is active and supplies of the
same are generally much reduced
Values remain high with no prospect
Of recession. 1t is this high plane of
values, however, that is forcing con.
in mercantile dealings for
The prudent merchant does not care
% be caught with large stocks of
goods on hand bought at inflated
prices. Another element of caution in
business is the constant addition to
expenses. Raw materials and finished
are higher; labor is scarce
and higher wages impose an addition.
II tax and risk in business ventures. ,
The action of railroads in advancing
wages to emplOyes--however pleasant
{ may have been to both sides-ar-
ests attention and causes more or
ess serious questioning Our rail-
Dads are now under obligations for
expensive Improvements. and with
he costs of operation steadily In
reasing, these new expenses will in.
yiiably make a serious inroad upon
et earnings. AT the same time they
re likely to be confronted with de- :
hands for lower freight charges. ,
ince shippers thus far have had no .
hare in railroad prosperity in spite !
f their having been its chief con 4,
ributOr. Railroad managers have I
roblems before them. the acuteness /,
{ which will be quickly felt when !,
aaction begins. e
Congress opens very shortly and r
resident ROosevelt's message will r
e awaited with exceptional interest. r
Though its general tenor is already 4
anticipated. The administration is ex- 7
acted to continue its aggressive I ]
oiicy towards The large corporations 7
hich have been disobeying the law. / S
I'D a long drawn out legal battle a
III be the outcome The next session / b
I congress promises to he one Of ac- q
We discussion but little real action.
uba, currency reform. subsidies, s.