The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-11-19

!
rally took place in the stock market
| this week, owing to easier monetary
conditions and to the revival OF rn'
! m0rs concerning the Hartman and
: Hill group OF stocks, some OF the
stocks directly interested having
scored a conspicuous advance during
the last few days 1t Is quite likely
| that the advances in ST. Paul, Union
Pacific, Southern Pacific Northern
Pacific and Great Northern have good
! foundations. These negotiations have
been going on for a protracted length
Of time, and II Is probable that the
pricipals have been simply waiting for
an appropriate time for manipulation.
/ This was probably furnished by the
somewhat improved conditions in the
money market While time rates con
/ tiuUe very high, stringency has been
| less acute, due chiefly to changed ron,
ditions abroad. The Bank of England s
| res arye is now in fair way or IN
creasing from this time on The
United States and France have both
been factors in the situation, the for
mer through the secretary of the
treasury withdrawing his facilities for
importing gold thus removing his
country as a competitor with the
Bank of England for South African
gold The Bank of France did its part
/ by extending assistance to Egypt and
saving the Bank of England accord
| ingly. This was a more legitimate ac-
ton than to have loaned funds 10 the
Bank of England, as il was generally
expected might be done. Then the
prospect of currency reform is re-
assuring A plan is likely TO be pre-
scented to congress that will com
mend itself and the committee pre-
pairing same have strong hopes OF its
being enacted by congress. This bet
| ter outlook for currency reform has
had a wholesome effect on the money
market.
1t has also transpired that the trans
! fer of American loans from London to
New York has been less active than
expected also that some of these
American loans have been extended
without difficulty Further. our obllga-
tions abroad have been considerably
reduced by the large exports OF do
Imestic products; especially cotton. the
total for which in October amounted
| to S65. 000, 900, an increase of $lS,00o,-
| 900 over the same month last year. IL
would be hazardous, however, TO as
sumo that the period for stringent
money is over. Time rates are still
| quoted at 71a to per cent for 90
| to 90 days. and per centfor4 TO 8
| months Our bank reserves remain
very low; and in spite of recent stock
market liquidation which has been
considerable, no important contrac-
ton of loans has resulted. In another
| six weeks we shall be at the end OF
the year, when We are usually eX-
posed to more or less spasmodic
movements in money rates. After the
new year. currency required for crop
moving purposes should begin to re-
turn more freely. This influx may be
deferred by the activity in business in
the west Furthermore. many of our
big railroad corporations, which are
greatly in need of funds for carrying
out Improvements or extensions, will
soon be in the mark IT for considerable
sums. This means a continued demand
for money and a further increase in
the new supply of railroad securities
which has already been heavily aug
mented during the current year.
Our railroad corporations continue
TO enjoy extraordinary prosperity
This they are already sharing with
their employees by granting increases
in wages. the effect of which. OF
course. will be stimulating to general
trade What with increased dividends
and increased wages, the railroads
have raised their obligations TO al
point where il is useless for stock.
holders to anticipate any further In.
crease in profits. The zenith in that
respect has been about reached. and
this fact should be kept well in mind.
uAtnfIr Hbllt iOGuH4 AoAHi bhf ~
likely TO be embarrassed by these aug
mented expenses. Henceforth. the
most potent bull arguments on the
stock exchange will he furnished
through profitable deals. or easier
rates for money. Speculation in min
ing stocks is expanding at a rate
which attracts wide attention. but so
far it has had little effect on the
financial situation. for the reason that
low priced stocks require much less
money TO handle them and the specu-
latiOn in this line. in spite of its &C
tivity. has not yet reached threaten
ing proportions. The speculative spirit
however. l. thoroughly aroused and
having spent much of its force on the
railroads is turning its attention iol
other fields.
General trade continues very active.
Perhaps the most striking feature in
all departments is the comparative
scarcity of goods, crude or finished
In the iron trade there is no abate-
ment of recent activity. Railroads.