The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-11-26


\ come. Both call and time money hav
n been ruling at very high rates and n,
4 material improvement is expected I'm
4 I'll January next. Bank reserves
usually run down during the last ST,
weeks of the year and it remains t.
4 be seen whether this movement viii
be repeated as usual The high rate,
. for money last week attracted consid
cradle sums from the interior, so thai
this week reserves should show some
improvement, unless demands iron
other sources have offset this influ>
from the west. An easier state of af
fairs prevails in the foreign markets
and there is less talk of a further ad
vance in the Bank of England rate.
a better feeling having followed the
action OF the Bank of France since
a portion of its gold went to London
where the pressure was keene't
American credit in London has not
suffered by recent events; and. while
there has been some curtailment of
our obligations, there has also been
little difficulty in renewing the bulk
IOf maturing loans. Still the tension in
! the worlds money market is almost
universal and periods of stringency
may be expected here before rates
tend permanently downward.
Conditions in the stock market are
favorable for moderate fluctuations in
tither direction. Whatever the natural
conditions may be, it should not be
| forgotten that stocks are still largely
concentrated in very strong hands.
large mOneyed interest accumulated
heavy lines of stocks during 1903 for
| the purpose of checking the down.
ward movement. The bulk of these
| stocks have been steadily held and
| in many cases show tremendous
profits, their holders have not, how
ever, thus far realized to any great
extent the favorable conditions of
business and the unusual prosperity
attending railroads having induced
them to hold on with unusual tenacity
in spite of conditions in the money
market and the fact that prices were
already unusually high. It is not prob
able that these gentlemen are un.
aware of the fact that in the long run |
natural influences will have their |
sway For the time being. however. !
as The chief holders Of securities they |
retain control of the situation and |
may do SO as long as nothing hap
pens to disturb present equilibrium, |
or as long as no important interest |
succeeds in unloading 1t is quite true
that there has been a quiet distribu.
ton of stocks Of more or less import. |
ance, but it has been obvious that any
unusual effort to sell precipitated an
undesirable decline and quickly turn
ed the current. A retrospect of the
market since last August will show
how comparatively narrow have been
the fluctuations and their see saw
character. Until these big holders
succeed in distributing a good share
OF their surplus, we are not likely 10
see any radical change in the market.
and so far as their power is con.
cerned ii may be used in the direc-
lion of higher prices, although ma.
-ural tendencies are in the other Iii.
'ection
In general business circles a great
leal of caution is exhibited The de-
nand for nearly all kinds of mer-
'handise is active and supplies of the
ame are generally much reduced
Values remain high with no prospect
If recession. II is this high plane of
'alues. however, that is forcing con.
ervatsm in mercantile dealings: for
he prudent merchant does not care ,
o be caught with large stocks of
GODS on hand bought at inflated p
rices. Another element of caution in ,
usiness is the constant addition to {
expenses. Raw materials and finished Il
materials are higher; labor is scarce 4
nd higher wages impose an addition. =
! tax and risk in business ventures. G
he action of railroads in advancing
rages to employes-howeve pleasant
may have been to both sides-ar.
ests attention and causes more or
ass serious questioning Our rail-
pads are now under obligations for
Npensive improvements. and with
ne costs of operation steadily in
reasing, these new expenses will in y
vitality make a serious inroad upon
et earnings. At the same time they :,
re likely to be confronted with de. p
ands for lower freight charges, =
nee shippers thus far have had no =
lare in railroad prosperity in spite .
their having been its chief con :,
ibutor. Railroad managers have :.
pblcms before them. the acutencss :,
which will be quickly felt when ~
action begins 8
Congress opcns very shortly and r.
resident Roosevclt's message will r,
awaited with exceptional Interest. r.
though its general tenor is already 4
iicipatTd. The administration is ex- I.
cted TO continue its aggressive !;
'licy towards The large corporations T
lich have been disobeyiDg the law. s.
ID a long drawn out legal battle al
VI be- the outcome The next session bt
congress promises to be one Of &C. ca
70 discussion but little real action.
lba, currency reform. subsidies. si
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