The Cairo bulletin., 1906-09-04

ket to higher level for the purpos
OF distributing stocks. Even Mr.. Bry
ans address and his remarks abou
government ownership Of railroad
were Ignored. Some difficulty, how
ever, is being experienced in financ
ing an active bull market at such higl
prices, and this con only be gradual,
accomplished by skillful manipula
ton. A few stocks at a time are lift
ed in order TO prevent an excess Of
activity, or speculation, which woult
precipitate disaster. OF course the
strongest argument for higher prices
Is that of increased dividends. IT Is
reasoned, and very consistently, that
| increased dividends tend to adjust the
differences between values and the
money market. Many stocks which
had been paying only or per cent
were unquestionably too high. But
increases in dividends from 5 to per
cent, or even still higher rates, justi-
fly many of the advances which have
been made, and modify the disparity
between the returns upon stocks and
the returns on money. This dispar-
ity had been the most serious element
of weakness in the stock market stu
alton, and the most likely influence to
cause a break through the selling of
investment holdings. A number of in
creased dividends have already been
M q 70
increased disbursements must have
the tWo-fold effect of supporting cal
ues in spite OF high money rates, and
of accommodating funds which sooner
or later will be reinvested Septem-
Der dividends are estimated at nearly
5000 600 although this month is not
usually a heavy month in that respect
OF this total the industrial companies
contributed $22,O00,000 or more than
double the amount so distributed twol
years ago. September is a SMALL
month for railroad disbursements but
these figures show the drift of the |
times 1t is quite probable that the
railroads will make relatively as good |
a showing Of profits as the industrials |
Tor our great railroad systems con
niue reporting unusual gains in earn
ngs, which are certain to continue
or several months to come in view of
arge crops and active trade. The
'airoads all over this country are
loW actively engaged in giecing out
heir roads and adding branches, as
we'll as making necessary repairs,
which makes railroad building and
'epairing on a large scale. All this
'equires an immense amount of sup
llies in the aggregate to be convey
ID to them. All Of these supplies have
o go over each others roads and con.
ribute immensely to their present
arnings This part of the business,
owever, is not permanent.
Monetary conditions are not salts
actory. Very likely the New York
anks are considerably below the le-
al reserve. since last weeks state
lent was made on declining averages
nd the banks this week lost consider
bic through crop and sub-treasury
Movements 1t is exceedingly diff.
nit, however. to obtain a correct idea
{ the banking resources of this COM
lunty under present systems The {
lcthod of reporting the condition of
he Clearing House banks by aver |
gees is highly deceptive. Besides.
be trust companies are now an i'm ,
ortant element in the banking situ. 4
ton, and these only publish state {
Ieins of condition at prolonged inter I
ais. Again, our bank relations with
urope are becoming more and more
itimate, and i'm event Of insufficient
'commodations in New York our big
'nkcrs now borrow as rcadlvl
broad MS they do at home. thus rem
'riuc it still more difficult 10 obtain
ny satisfactory idea of loans aud {
serves as affecting New York Lo- {
Il bankers have been placing consid-
able confidence in Europe and in
'cretary Shaw for assistance 20
'ert any severe local stringency.
'cretary Shaw has large resources at
s command and will probably do all [
thin his power to afford legitimate {
sistance for cropmoving. but will Q
doubtedly be very careful TO avoid
q charge Of assisting speculative :
Dvemonts in this city. Whatever q
sistance however. he may give TO
stern and southern crop and bust
ss demands will to that extent di- !,
nish the strain upon New York ! :,
rther relief will be undoubtedly OBJ :.
ned by gold imports. London. Paris :
d Berlin are all disposed 10 discour-
Q American demands as far az pos
lie but in spite of such resistance =,
~ promises TO come this way in :
lsidcrable sums. Negotiations are II
ing carried on abroad in q quiet a
.hion. and II seems probable that "a
; bulk Of new supplies going to- Lon r
b viii be diverted to- this side Quite n
ircak occurred 10 foreign exchange r.,
e ~ the large offerings of finance N
is. plainly indicating our large bor in
wings in that market Commercial h,
Is must alss be in increasing sup e.,
b: and such facts as these. coupled
n high interest rates-Iocal rates 81
time money ruling at 10 I per 10