The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-09-17
HENRY CLEWS e. co.

by SOu imports, the engagements
\ thus far this week amounting to abou
Z $50 100000 Good authorities estimate
that we shall be able to draw at leas
$50 00000 from London this year il
not more. II Is also possible that we
[ may secure assistance from Paris Il
!. needed where funds are steadily accu
2 mulating owing to the inertia arising
: from political and socalistc agitation
Gold imports have of course been has
tened by advances of government
funds to national banks importing
: gold. The governments action also
in depositing funds with interior banks
: tended 10 relieve the strain in the
: money market. Until this last stel
was taken the treasury. thanks to our
clumsy currency methods. had locked
up about $43 100000 more than n year
lago, all of which might have been in
the banks lubricating the channels OF
business bur for the ignorance and in
action of congress Secretary Shaw
has done his best to counteract the
effects of an illogical currency sys-
TEN, but as long as that system re-
mains in its present form our money
market must continue in times of
stringency exposed TO the Judgment of
a single individual, whose action may
not always be as courageous and wise
as that Of the present very astute
secretary. Mr. Shaw, however, can
not very we'll prevent the money he
releases indirectly assisting specula-
ton. Money like any other commo-
Idity always goes tothe highest bid
der; this being a natural tendency that
Ino government official can arrest
Last week our bank reserves touch
ed the lowest point in many years. II
should also mark the lowest point for
the current season BY means of gold
| imports, treasury advances govern
! ment deposits and contraction in
Tomas, bank reserves must show much
| improvement Recent stringency had
been long foreseen, and many borrow
ers protected themselves accordingly.
Moreover stock market requirements
have been considerably provided for
abroad, which does much towards ey
| planning recent indifferences of this
market to local stringency, and which
| will also leave our home banks more
| free to deal with legitimate home re-
iquirements Through such means Of
relief The pressure upon the local
money market has been considerably
Iabated; and. unless speculation should
break out naggravated form or rates
be unduly manipulated, the worst OF
the money squeeze for the present
should be over Firm or even ire
'gular rates may be expected; for this |
seasons demands are certain to be |
extraordinary and the inelasticity If |
our currency system makes this the |
most erratic money market in the |
world.
AS for stock market prospects, there
certainly seems little chance for inn
portant reaction while our railroads
continue to do such an enormous and /
profitable traffic. Their activity sim
ply demonstrates the activity Of those
who use them Two more remark
able annual reports-those of Atchison
and Northwest-haye just been made
public, showing largely increased div
idend paying power, even after extra
ordinary payments for Improvements {
had been made out of current earn (
ings. A very brief study of the re-
suits now being obtained on our great
railroad systems will explain the ex- F.
IRENE optimism that still prevails I'M
broken in high circles. The "Chron-
icle' publishes statement of rail
road earnings for the six months end {
ing June 80. covering 10000 miles Of .
road. which is only about $1,000 short
Of the country's total mileage The {
gross earnings during that period were I
S923.000,0 900, an increase of sos. 900. q
300 over the same six months in 1905. s
The largest gain in any previous cor \
six months was in 1903. {
when the increase in gross was about S
100000, 600. II is in net earnings how z
over, that the gains are most aston
shing; the total net for the first six /
months of this year being S272. 100000 la
against 1926 100000 in the same per t
cd of 1905. Here was an increase Il
IF Si6,000,000 or 20 per cent This is y
simply marvellous. The next largest q
yain in net was s2G, zoo. 900 in 1901. n
These figures show what an important o
Dart The railroads are playing in our n
RATIONAL prosperity. They are today Q
pending more money for materials y
nd labor than ever in their history: Fl
he extraordinary activity in iron be- 81
NJ chiefly due 10 railroad purchases. a.
he demand for transportation is still z
eyOnd the supply; our railroads gen et
rally are overtaxed. and large sums Il
must continue to be invested for i'm p
movements. extensions and new mile I,
ge. As yet. there are not the least s.
igns of OVERRIDING in railroad con- :,
tIuction. N
An interesting element in the rail 81
Dad situation is the partial selling u
y Pennsylvania Of its holdings IN z
7 IL