The Cairo bulletin., 1906-02-05
into WEAK HANDS.
From the Strong Are High.Priced
Speculative Stocks Are
Passing.
Special TO The Bulletin.

from Washington OF adverse railroad
legislation. Subsequently these fears
were found 10 be somewhat exagger
ated; but the selling movement was
started and liquidation ensued. which
could not be checked until several of
The active stocks had shown severe
declines Amalgamated Copper 1914
Anaconda 2 Reading 1SJa, Tennessee
Coal 4 Iron IL. Smelling S;s, Chicago
& Northwestern 98i Colorado Fuel &
Iron ITS, Northern Pacific 93s, Brook
Ign Rapid Transit sd, Canadian Pa.
ciic e. Louisville e Nashville 6, Metro.
poltan Street Railway 6, Union Pacific
3, St Paul6 and New York Central
43s. Other active shares also had con.
siderable declines. Thit downward
tendency was further accelerated by
what appeared to be increased London
selling On Wednesday however. the
decline was suddenly checked by an
unexpected burst of activity and
in the copper stocks, which
was traced 10 persistent rumors Of
closer relations between the Amalga-
mated. United Copper and the Ameri-
can Smelling Company, which practi'
cally dominate the copper situation
in The United States, in which case It
viii end one Of the bitterest and most
romantic industrial wars in our history.
The strength resulting from these ru-
mOrs shows the eXent to which the
market Is influenced by merger re-
ports; and, as other important deals
ire stll in prospect The market must
continue TO be more or less influenced
hereby These deals being usually IN
Ter the control of powerful financial
interests. It follows that The lat,or
viii use heir utmost endeayor to pre-
vent any serious reaction in the mar
let that might interfere with their
,lans Another supporting influence
. the fact that important news issues
,f both stocks and bonds are in pro
,ess of negotiation, and simply wait
ne favorable opportunity for an
This means that large
,anking houses will cooperate in pre-
'onting any violent reaction until these
iew securities find a resting place II
s quite possible that investors have !
,een purposely waiting for these new |
opportunities. since ordinary invest |
nents have been much neglected and |
re altogether too high to attract the |
areful buyer. The close Cf the month |
Witnessed the offering of several i'm
ortant issues and others may be OK
ected TO shortly follow while condi-
ions favor The process of selling
tocks by large holders continues with
ut interruption, and high-priced spec
latiye issues are steadily passing
rom strong into weaker hands. The
eneral public, however does not ap
ear to be very deeply engaged in
nese speculative operations, yet
lrge class Of very wealthy and some.
hat inexperienced plungers have en-
cred the market, and it is they who
re relieving BIZ holders of their sur
lus stocks and sustaining the presen; |
nusual activity on the Stock En-
langc Some Of these gcntlement eX-
rather severe losses during
ne month of January, and il is to be
oped that such experiences will dis
Durage the eXtrayagant speculation
hitch has been the rnief menace OF
le market of late The general bust.
css situation continues emincntly sat
factory, which is eXemplified by the
plendid statement of the United !,
tales Steel Corporation for the past
uartcr. showing profits for the year
D0j of 100000 400 AMI untitled orders
f 7G05.0SG tons. Many or The other
ldustrials are also showing hand ,ome |
and were it not that many
+ these institutions are so grossly
yorcapitaized they would be entitled
, more Of rise than they have had.
Perhaps The most unsatisfactory elc-
rent in the situation is the monetary |
utloOk. Easier conditions prevail than
{ the beginning OF me year. but the
utlook is still confusing. The expan-
ion Of $4,000 geo in loans last week
as anything but satisfactory. and in
lew of extensive liquidation was some
hat OF a surprise. The reserves are
till too low. considering demands %
'hich the banks are exposed, and
inds are delayed in returning from
be interior by the activity OF trade in
arious sections and by the slowncss |
-iih which farmers are marketing
leir products The large credits OBJ
iined abroad at the time Of the last
l-uetary squeeze are now maturing
nd will have 10 be either renewed or
therwise provided for Were 81 NOT
lr Russia's impaired financial condi-
on and the rumors that Russia con 1
amplates a new heavy loan of s400.
60.090 Thee obligations might he eX-
ended; but with affairs as they are St
GEMS likely hat many of these loans
I'D have 10 BE refran -ferred to Nov
erik, and no doubt this partly explains !