The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-02-26
SIGNS OF FATIGUE
Exhibited in Speculative Spirit On the
Stock Exchange, Says
CleWs.


ering operations of an increasing shor
J interest but the general drift of tn,
market remains downwards The rea
, sons are the same as already ad
yanced, namely, the oyerdiscontinuins
OF all bullish influences. the great in
crease in new securities or ADVANCING
! tendency of money. The multiplication
7 OF new securities Is going on at a rapiC
pace and further large amounts are
: probably forthcoming This process. il
long continued will produce more OF
less congestion in the financial mar
kets. Then our local monetary outlook
, Is still unsatisfactory Bank reserves
are low, and not being strengthened
by the usual influx of funds from the
interior, because business activity in
that regions interferes. Large sums
are still locked up in speculative ven
lures, and stringency here has forced
the making of large loans abroad.
| There is no cure for the present stua-
ton except further liquidation, and
any attempt to carry on the upward
movement under existing conditions
will inevitably lead TO difficulty.
Another influence upon the stock
market which has not yet received the
consideration to which it is entitled
Is the spread of the fever for iuvesti-
CATION. Both state and national legis-
latures are becoming actively inter
ested In this movement instigated, of
course by corporate abuses which
have incensed public opinion and re-
suited in the present fever for investi-
CATION committees. Quite a number of
captains or industry and finance are
III consequence placing thems elves be-
yond reach of the process server. the
result being to check speculative
operations and create feeling of
timidity among inside operators. II is
unnecessary to say that the political
effect of these Investigations will be
more or less disturbing: since they
provide material for more or less SEN
sational disclosures, stimulate the
anti-monopoly sentiment and ma
terially strengthen the tendency to-
ward socialistic theories. These symp-
toms have not yet exerted their effect |
in Wall street, being for the present |
entirely oyer-balanced by the con.
tinuance of business activity. Later
on they may receive more serious
consideration.
The Armstrong insurance report is
&C. tainiy not a bull argument onI
STOCKS. u means that hereafter these
powerful Institutions cannot be de.
pended upon in support of stock or
bond syndicates; and the limitations
which are likely To be placed upon
their Investments will also have some
effect upon values, strengthening is.
sues which are favored and weaken. l.
ing those Disseminated against OF the
later class several hundred millions
will have TO be sold during the next !
five years; so that these recommended.
lions if carried out will cause very !
shifting of investments.
Now that the mania for publicity is
Il It's height il is quite appropriate to
the question of utilizing pub
lie accountants more freely Beyond
question many of the corporate abuses
Of the day are the result of undue
secrecy in management Many Of our ,
big corporations whose securities are
scattered among the public are liter.
Ally nothing but blind pools. Stock.
holders know little or nothing about
heir financial condition or their bust.
less progress; regular statements Of
,arnings and profits are withheld. and
lOthing is made public except vague I
statements Of liabilities and assets.
which are chiefly Of interest for what
hey conceal. A few of our railroads
nave already assumed a commendable :
policy i'm this respect. their stock
holders receiving elaborate annual re-
'orts which the average investor can
Understand. Candor and honesty are In
written on every page Such com. {
,anies secure and deserve public con. ]
idence. This is not the case. however \
With many of our industrials. These
90 ought to submit regular annual
statements which can be comprehend q
ID by the average mind. and such
statements should b. certified TO BY
)ublic accountants of recognized char
IcIer and ability. The latter is a grow
ng profession. and one deserving of
III encouragement In England il &C
'upies a high standing and Is much
more frequently rcsorted TO than here
Ne need "A large force Of skilled in
of this character. con
rolled by men Of unimpeachable in
egrity. Corporations would thus
void the Objectionable legislative
who are usually more in lie
crested in politics than in sound bust s
ess. A body Of protcs sional account
nts should be established upon
chooi of ethics as high and strong
3 those Of the lawyer and physician; Z
Onesty and sacrsdness Of trust being g
he very foundations Of the prOfes- y
ion. 4 little agitation 10y few in y