The Cairo bulletin., 1906-04-30
FEEL THE DISASTER

Special Weekly Letter,

IA ''" w " Apiil S3.~- ne SfDcl
market begins to feel The San Fran
cisco disaster more keeny than al irs
- anticipated. Following the first shock
- there was a natural bracing together
ari Tor resisting IFS consequences, but AZ
y the appalling extent Of the calamity be.
came more generally known values H.
=. q Mighty inflated market gradually
l. began TO yield. II is now estimated
ny good authorities that the total de.
4 struction of property will approximate
. about 30000o000 Probably not more
than half this amount. or $3.50, 900. 600.
Z VIII be covered by insurance: and OF
the losses which viii have To be paid
by The insurance companies more than
haf Of that sum. about $4,000, 900 or
$S0.0o0.o0e, will fall upon American
companies, the balance being sustain.
ed by foreign concerns Added 10 the
actual destruction Of property viii be |
the INSTRUMENTATION and loss OF bust
ness Tor weeks and months 10 come. /
SO that il Is yet impossible to calcu
late the real damage to trade and in !
| dustly resulting from this catastrophe.
by no process of intellectual jug,
eIins can such a wholesale destruction
| Of property be turned into a bull ar
gument. The loss is actual and tire.
mendous, and must exert depressing
effect which however. widely dstrip-
Iuted will have 10 be endured So far
as Wall Street i5N concerned lis chief
influence will be felt in the money
market, which has been oyertaxed by
nHmerOua insistent demands High :
priced stocks and high rates for money
are uteterly Incompatible Since there y
IS lttIe for prospect Of. cheap money !
Tor some time TO come it is inevitable ?
mat REIMBURSEMENT must be effectedl
through liquidation and lower prices ~
Tor some time TO come il is inevitable /
that readJustment must be effected II
through liquidation and lower prices II
for securities. Many of our railroads
winch have important improvements
already under way are in urgent need 4
Of funds A few of the shrewder cor
have already provided for y
themselves III advance. but there are
'thers winch are not SO prepared and n
nnsl come into the money market up. II
N the best terms which they can Sc. II |
lfe In This connection The reap- Il |
earance Of short term railroad notes n |
q significant indication of monetary II |
This device has not been n |
astorted TO since 1903, when a SINH II
II stringency in the money marker
illsed decided reaction in stocks II
nr'her borrowings are 10 be expected II |
ON railroad corporations. SO that ac r.
,mpaned with regular trade de.
ands, which are heavy. and the nm. -
'ual real estate speculation. there
no chance for low money rates dur
g the coming summer or until after |
e crop movement has been financed -
'ospecls for continued gold imports
e not encouraging, although an add -
" 100000 has just been engaged
d the monetary situation has been
rther relieved by the efforts of Sec.
'ary shaw 10 aid the banks. In cose ~
emergency some help might be oh 1 4
NED from London or Paris. the great
'elgn banks being in better position
IN might have been expected consid
ng recent heavy demands. AS pre.
usly stated. the necessities arising
IN The San Francisco fire come at
unfortunate time for the local Com
ney market Insurance losses vii;
paid gradually and partly from the
plus funds already in bank II will
Impossible, however. for American
,al lossos nnIiraI,, p, ,o ,"e9e un' surr
7ir surplus funds have been invest
generally in high grade securities.
he of which viii of necessity be for .
or -, -, .'a'iS "H Chas
90, e,a,a;,,.- n''7"' "e j. II
ks before the decline than 10 Dor.
money al per cent for paying
.es- In rising market r would. OF Aeon
w pe'ler poileN 70 retain Sc uala
'ioS aho borroW cash for pay furni
lis
urlng the week there has been con
rable inside selling of stocks. es. A
ally of ST. Paul Consolidated Gas n
Union Pacific A few weeks ago
lmber OF prominent operators were
led together to support the marke.
II possible TO push the advance
higher. Such arrangements have eI
been broken. and a number or
ninent traders are operating on
short side: showing that cond.-
have forced a change of opinion cspIt;
ircles which were previously ex- surpll
ely optimistic. Outside conditions
inue satisfactory. Crop prospects
excellent thus far and in all lines
ldustry activity continues unaba- T. A.
Aside from The San Francisco fire Z. U.
ssive speculation in real estate is J. ID.
icaily the only dis urbing feature T. sp
nd the precincts Of Wall Street
=. A
n-s-- 4