The Cairo bulletin., 1906-12-17

manipulation by some Of the leaders
High interest rates are just now yer,
profitable to banking institutions al
shown by the increased or extra diyi
dends announced by banks and trs
companies
The possibility Of gold imports I.
again being discussed. The Bank Of
England, our first source of supply
has strengthened its position durina
the last few weeks and Is expected
to receive at least 100000. 900 OF gold
In the month of December. Brazil and
Argentine may require fully one-hali
of this, leaving the bank at least $5
100000 better off than a month ago
Other demands upon the Bank of Eng
land are supposed. to be held In abey.
ance for the time being 50 that the
possibility of procuring help from that
quarter Is somewhat better than It at
i one time APPEARED. American finance
II bills are again being placed in London
for he purpose or relieving the ten,
sion in New York. Efforts. howeve"
to shift the pressure upon other cen.
tiers are not entirely satisfactory. They
distribute, but do not lessen the load
now placed upon the cerdit situation.
i which is being constantly aggravated
! by new demands. AS repeatedly in
/ timated in these advices Their is only
one proper cure for present condi
tons and that is liquidation such as
hlxy inn . In
tket continue to take this course. the
effect will fall most heavily upon some
of the cliques and pools which have
been carrying securities for long
period. Fortunately the public Is not
| in the market to any great extent.
| Prices of many of the active stocks
are now so high that investors, will
not touch them and spectators can.
not because carrying charges are too
high, while the risk is considerable
in operations forether the rise or the
fall. Stock market movements have
practically com to a deadlock so far a.
concerns speculation in the better
class Of securities. The bulk of these
are in the hands of strong holders,
who will not sell while business con.
ditions continue as they are.
The weakest point in the marke
therefore, is in the situation of old
pools and syndicates which are still
carrying considerable sums of securi- |
ties on borrowed money. Upon these |
the strain Of a stringest money maket |
will chiefly fall. As said above. there
/ no prospect for material relief in |
the monetary situation for some time
to come. At the first signs of i'm
proyement after January first, we
shall probably see a number Of new
calls for capital especially from our
big railroad corporations. which have
Improvements that must
be completed in order tohandle exist.
ing traffic The output of new securi.
ties is going on at a tremendous pace
and shows no signs of cessation.
Stocks continue TO act in a peculiar
fashion. The announcement of good |,
news is almost invariably a signal for
selling and declines. Only those en-.
1 ,
teals have any opportunity for pro.
liable turns The Hill melon. for in.
stance. was followed by sharp drop I
20. too, have nearly all other an
louncements Of increased dividends
IND increased prosperity Shrewd in ,
'estors are skeptica of the contin.
lance of such good conditions and areI
more disposed to- sell on favorable de- ,
'elopments, believing that the present
ituation has been more than fully
iscounted. Very shortly, the usual
January investment demand will bel !,
ne. In previous years this has often
hown itself by advance purchases IN :.
december, the last week or two Of the 4,
ear often developing considerable
irength on that account. II will be y
lteresting TO observe if the custom .
ry demand appears, and how much
the large January disbursements
i'll be reinyested in Wall Street. Tn. =
IS we are mistaken, the proportion
i'll be smaller than usual; for as said
Dove, good stocks are too high for =.
vestors. and the carrying of them Is =,
o costly for spectators. Just now
yestors are placing their money in
her directions; notably in first
ass real estate. or substantial indus
ial enterprises. A reasonable recess
IN in Stock Exchange values would.
'weyer, quickly bring this class Of
Iyers back into the market, so there -
little cause for concern in that re.
ect.
Outside conditions continue favor.
lie and the outlook for the coming
ar is satisfactory. The chief rouble -
the financial world is the exhaus- 80
~ Of loanable funds: first. by an .,
er expansion Of credit: and second. ~
the high prices which quickly use ;"
funds and diminish the loaning
wer of our lending institutions. II
res a larger amount Of money than .
-merly TO carry stocks and com
'dities: hence. in spite of the larger =
pply Of currency and gold, our
'netary resources are inadequate
elastic currency. Is highly desir-
lie. but not a cure for present con cii
ions.
There is no reason for lack Of con
In