The Cairo bulletin., 1906-02-26
SIGNS OF FATIGUE
Exhibited in Speculative Spirit On the
Stock Exchange, Says
CIeWs.

ering operations of an increasing shor
, interest but the general drift of tn
: market remains downwards. The rea
sons are the same as already ad
Vanced, namely the oyerdiscantinuin,
OF all bulIish influences the great in
crease in new securities or adyancn,
: tendency of money. The multiplication
7 OF new securities is going on at rapiC
pace and further large amounts ar,
probably forthcoming This process. 4
long continued will produce more OF
less congestion in the financial mar
kets. Then our local monetary outloo,
, Is still unsatisfactory. Bank reserves
are low, and not being strengthened
by the usual influx of funds from the
interior, because business activity in
that regions interferes Large sums
are still locked up in speculative ven.
lures, and stringency here has forced
the making of large loans abroad.
There is no cure for the present situa-
ton except further liquidation, and
any attempt to carry on the upward
movement under existing conditions
will inevitably lead 10 difficulty.
Another influence upon the stock
market which has not yet received the
consideration to which it is entitled.
| IS the spread of the fever for inyesti-
CATION. Both state and national egis-
latures are becoming actively inter
ested in this movement. instigated. of
course, by corporate abuses which
have incensed public opinion and re-
suited in the present fever for investi-
CATION committees Quite a number of
captains or industry and finance are
in consequence placing themse elves be-
yond reach of the process server the
result being to check speculative
operations and create a feeling of
timidity among inside operators. Ii is
unnecessary to say that the political
effect of these investigations, will be
more or less disturbing; since they
provide material for more or less sen.
sational disclosures, stimulate the
anti-monOpoly sentiment and ma
terially strengthen the tendency to.
ward socialistic theories. These symp
toms have not yet exerted their effect
in Wall street. being for the present
entirely over-balanced by the con.
tinuance of business activity. Later
on they may receive more serious
consideration.
The Armstrong insurance report Is |
cel tainiy not bull argument onI
stochs u means that hereafter these |
powerful institutions cannot be de-
pended upon in support of stock or
bond syndicates: and the limitations
which are likely to be placed upon
their Investments will also have some
effect upon values, strengthening is.
sues which are favored and weaken.
ing those Disseminated against. OF the
later class several hundred millions
will have to be sold during the next
live years so that these recommends
lions if carried out viii cause a very
shifting of investments.
Now that the mania for publicity is
It its height it is quite appropriate to
the question of utilizing pub
lie accountants more freely. Beyond
question many of the corporate abuses
Of the day are the result of undue
secrecy in management. Many of our
Dig corporations whose securities are
scattered among the public are liter.
Ally nothing but blind pools. Stock.
holders know little or nothing about
heir financial condition or their bust.
ness progress: regular statements of
'arnings and profits are withheld. and
lothing is made public except vague
statements of liabilities and assets.
which are chiefly of interest for what
hey conceal A few of our railroads
ave already assumed a commendable !
policy in this respect their stock
holders receiving elaborate annual re-
'orts which the average investor can
understand Candor and honesty are II
written on every page. Such COM {
,anies secure and deserve public con
idence This Is not the case. however.
With many Of our industrials. These.
90. ought to submit regular annual
statements which can be comprehend u
u by the average mind. and such /.
statements should BE- certified TO by
public accountants Of recognized char.
icter and ability. The latter is grow
ng profession. and one deserving Of
III announcement. In England it oc-
'upies a high standing and Is much
more frequently resorted 10 than here
Ne need large force 81 skilled in
estigators If this character. con
rolled by men Of unimpeachable in.
eErity. Corporations would thus
void the objectionable legislative
ommittees who arc usually more in lie
crested iu pOlitic- than in sound bust 6
es7 a body Of professional account
nis should be established upon a
chool of ethics a. high and strong
g those Of the lawyer and physician. Z
Onesty and sacradness Of trust being {
he very foundations Of the profes- J
ion. 4 little agitation by a few in :
ueniial stockholders committees