The Cairo bulletin., 1906-05-14
HOPEFUL FEELING
Now Prevails in Financial Circles
Partly Attributed to Monetary
Conditions.


New York, May PA more hopeful
feeling now prevails in financial cir
cles This may be attributed partly Il
improved monetary conditions. ane
partly y the fact that all known unfa
. vorabie' circumstances appear to have
been discounted ythe decline which
eliminated a week ago and which re,
suited In depreciation estimated at
nearly $l000000,000 After such a
prolonged and radical decline. recov-
cry was perfectly natural A large
snort interest had been created. and
buying nthis account not only induc-
cd a rally but satisfied, temporarily
at least, the bear operators who had
MADE very considerable profits. The
fact, 100, that the market could with
stand sucn a series OF Socks as have
been encountered during the last few
weeks, some of them of a rather VIC
lent nature, gave confidence to the I'M
dertone Of the market
Liquidation has been very severe
and the technical situation consider.
ably improved thereby A year ago it
would have been impossible to have
made anybody believe that such de-
probation as has just been exper-
fenced could take place without pre.
clpltating serious trouble; if not actual |
panic. That the market has with.
stood these extraordinary shocks with |
OUT single failure Of Importance is |
testimony of general finan-
cha strength and soundness. MuchI
OF the rise his week has been due 10
short covering. Nevertheless, it is
proper TO recognize the improved
features in the situation For months
past the key TO the stock market has
been held by the money amrket. The
enormous expansion of loans, out of
all proportion TO the increase in bank
ng capital, and the extraordinary Gre
atoms of new capital either in the
'orm of stocks or bonds, placed a
strain upon the money market that
vas both threatening and at times |
farming. Fortunately heed has been h
'ald to these symptoms of OVERRIDING | |
nd the Stock Exchange has already /
experienced its share of liquidation or
adjustment. When relief was neces- 4
airy ii was obtained from abroad and
ne gold thus ordered was made i'm
iddiately available for credit pur-
oses through the prompt action of
ecretary Shaw. It is quite evident II
so that. II our needs demanded fur n
Ter assistance from this quarter, il
'uld be Obtained. The European si
tllon has much improved during the
st few weeks, The Moroccan affair /
rs settled for good the Russian re- n
'iutlon is progressing on more peace. II
] lines, and the French republic has
monstrated to the world its stabil- II
and its power TO govern by veor-
S suppression Of the threatened May 4
ly disturbances. Germany for the
esent at least is not a disturbing
9ment, for the reason that owing to
r recent policy she is isolated and /
S lost the friendship of Russia. |
ance and England Under such iso-
ism German ambitions are likely -
be restrained. thus, mating for
neral peace. All of this is important
the New York stock market. mas.
lch as in case of need we should he -
ire free to borrow i'm London or
ris than if different conditions pre-. ~
led
Another element OF strength in the
eek market was the cessation of the
II strike. For the miners this
we'd a most unfortunate affair. mas
ch as they lost about months w.
ses aegregating nearly $4,000 600
say rothing of the loss of prestige
Mr.. Mitchell and his immediate
overs. The public at large will ca
badly thank Mr. Mitchell for avert. su,
the struggle. which would have
olvcd widespread disaster and DOS
e defeat 10 his own men. as well
an increase Ct several millions in ~
cost of coal to consumers Chs
ongst his own followers. however ]
Mitchell is quite likely 10 lose r.
iidence; and his unfriendly rivals
hin the union will certainly use this
'at to his detriment as much as AZ
'ible. For the coal operators the .
lsion has been one or increased adj LUZ
iage not merely in holding i'm
TX aggressive union demands but
by enabling the companies 10 dis
of surplus stock at better
es than would have prevailed had
stock been threatened. The com
e. bad a surplus Of about 100000
tons on hand. much Of which they n
at at an increased profit
le Government winter wheat re
showing a condition Of ~ per
compared with 925 per cent at c.,t
same time last year. was an en- g..
aging feature This is also an i'm
emeat Of nearly ? points in the
ition over last month and. while
,rop does not promise to be extra n
lary one. indications suggest a Y.