The Cairo bulletin., 1906-04-09
CONVEY A WARNING
AbnormaIy High Rates For Call
Money Significant of Extraor-
binary Conditions.
Special Weekly Letter.

Special Weekly Letter
New York, April Sin spite Of an
adverse money market and the coal
strike the stock market has shown
surprising resisting qualities Manip-
ulati0n was credited with portion of
the advance which took place in the
early part Of the week, but the truth is,
underlying conditions are so satisfac-
tory that following the previous de.
cline there was little diciculty in fore.
market, however is still a controlling
factor Abnormally high rates have
ruled for call money and the period
Of Stringency incident to April 1st
lasted longer than usual. Such condi
tons usually convey warning. There
! is still a very active demand for money
from various sOuces. Legitimate de-
mand3 for mercantile purposes are
very heavy owing TO tardy activity and
! high prices; while large sums are
real estate speculation is also absorb
| ing considerable sums. Available sup
plies Of money are apparently exhaust
| ed, for we have been turning floating
capital into fixed forms with 100 great
| rapidity, and this in spite Of the large
increase in our currency supply AS q
consequence of extreme stringency
! there was decline of sterling eX-
change rates and moderate engage
ments of gold from abroad were an
nounced The condition Of the for
| e!gu markets, however, is not entire.
! " favorable to gold imports, While
prosperity abroad increases the sup
ply of advance capital still very import
ant demands upon the European
money markets are impending A Rus.
sian loan Of about $250000,000 viii
shortly be announced. Both the Ger
man and the French Governments are
also likely to soon come into the
market as extensive borrowers while
the British government and also the
London County Council contemplate
Iputting out important loans at no dis
liant date It is estimated that the new
demands from these several sources
will approximate about 100000 900
At the same time the new capital is
sues in England in March and April
were unusually large as a result Of
trade and industrial activity. AS for
the Russian loan, il remains to be
seen how that will go. Russia has
succeeded temporarily at least, in sup
pressing rebellion, but her finances are
badly strained and the loan represents
urgent need. Much interest, therefore. |
is attached to the price which this
loan will bring. Paris Is expected to !
be the chief subscriber, with Germany
a moderate second. London may pos
sibly subscribe TO limited extent, |
but New York will decline even if in |
yited to participate With all these |
demands on the foreign money mar
kets conditions must be less favorable |
to our importing gold in case Of neces |
city than at one time anticipated |
Nevertheless, the most urgent borrow |
err when in good standing is the one |
who usually secures the first accommo- |
dalton; and in case of need some of !
these other negotiations might be post
poned for the benefit Of New York |
A degree OF relief has been obtained |
here by the larger takings abroad OF |
American securities, these diminishing |
our foreign Indebtedness and at the |
same time strengthening our credit |
abroad In some of the foreign mar.
kets there seems to be a freer dspo- |
sitino TO take American bonds-a fca.
ture of some encouragement since the |
local market is congested with new is |
sues which have not yet found a rest
ing place.
As already stated, underlying condi- |
tons OF the stock market are very sat |
isfaclory Owing 10 the open winter |
and uninterrupted activity railroad |
earnings are gratifyingly large. Van
derbilt properties, Erie, Union Pacific, |
AtchisCn and other important railroad |
systems are all showing splendid in |
creases. In the month of anuary III |
roads reported a gain of 20 per cent; |
in the month Of February IS roads |
gained p per cent The totals for !
the month OF March are. of course. |
not yet available. but they too are
expected to show handsome increases. !
The returns Of mn yaof our large in
dustrial corporations are also crafty |
ing, showing a continued industrial &C |
tivity throughout the country which
those in position TO judge anticipate
will continue for ONE time 10 come.
or course. much will depend upon the
crop outlook. that being the pivotal
center for future calculations; but
with 50 many new enterprises under
way or contemplated there is little !