The Cairo bulletin., 1906-09-10
Stocks = Bonds y Cereals

NAV be less prevalent. AT any rate
n series of questions are ahead, pend.
ing the solution Of which they would
rather sell stocks. especially when
they afford such magnificent profits.
Present high prices alone are ample
inducements for selling by many who
have held stocks since the low level
of several years ago. One thing at
least II certain; that is, that the big
holders are gradually selling and that
stocks are steadily passing from
strong into weaker hands.
Apparently our market leaders are
depending upon Europe to finance
their operations. Thus far gold i'm
ports have been disappointing. Some
experts. however, calculate that Lon
don could spare about 25,000,000 this
season and Paris about $4,000 600.
There are other important demands
to be considered, such as the Russian
loan and the Brazil coffee yaloriza-
ton scheme; but American credit
abroad Is strong, and since we are
able TO offer the best terms 1t is
quite likely that we will be able 10
outbid other bidders for gold No
doubt ii is our strength in this respect
that gives our financiers such con
fidence in conducting a big bull mar
ket against conditions ordinarily
deemed adverse Additional help can
also be secured through an expansion
Of loans abroad, thus diminishing the
necessity of gold imports Still an
other expedient is the carrying of Am
ercan stocks in foreign markets Very
considerable relief is also expected
through Secretary Shaw's depositing
public funds in the banks Mr. Shaw
will not do this for tne purpose Of
aiding speculation, but any assistance
he may afford the interior banks,
which he is likely to do if found i'm
peratiye will necessarily lessen the
strain in New York.
Mr.. Bryan's remarks about Govern
ment ownership eXertei only tenn
porary effect. They are too visionary
and impractcable TO receive serious
attention from those who appreciate
the magnitude and complications Of
such a proposal Mr. Bryan does not
tell us haw he will finance the trans
fer of over 100000 miles of railroad
and nearly $4,000 900 of htocks
and bonds; nor how he would adjust
the differences arising from roads pay
ing good dividends and those paying
no dividends at all This is not the
first occasion on which Mr. Bryan has
shown his incapacity as financier.
The future of the market is increas
ingly uncertain 1t Is useless to deny
that the general situation is very ia
yorable. We seem as certain as pos
sible of another good business season
and consequent good earnings for the
railroads 1t must also be remember
ed that the market is manipulated by
operators of great skill and unprecc-
dented power The weak element in
the situation is that they are quietly
distributing stocks, and that monetary
conditions are increasingly adverse.
The uncertainty as to their success
and as to how long they will stay on
the bull side renders it advisable to
take profits on all good advances Re
actions are becoming more frequent,
and the advances more and more spas
modic and artificial 1t is significant
also that Europe has been a rather
free seller of American stocks some
thing which will tend TO render gold
imports more difficult in spite of our
large coming exports of cotton, corn
and other products,
HENRY CLTWS.