The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-06-04
MONEY CONDITIONS
Have Entirely Dominated the Stock
Market During the Past Six
Months.
Special BY Mail.


poses, such as new enterprises, trade
activity, stock and real estate specu
lation and finally the San Francisco
fire, have all tended to the practical
exhaustion OF monetary supplies. For
tnnately we have been able I'd make
danger from this strain upon our
credit system has been happily avert
ed. Some of these demands have been
satisfied temporarily at least, and the
| prospects are that during the next two
months easitr conditions will prevail.
AT this juncture, however, come the
demands OF the railroads, which have
been postponed as long as possible.
These have been unusually heavy in
the past, and promise to be very large
in the future. Our railroad system is
still behind the countrys' requirements
the expenditures of the last four or
five years having been insufficient to
meet national growth. Most of these
OUTLAWS have been devoted to modern
i2ing cur railroads and providing better
terminal facilities. oNw, with the de
yelOpment of the great West, comes
the imperative call for new mileage,
as well as completion OF improvements
Many important new projects are al
ready under way and othens are pend
ing. II is stated that fully $4,000 miles
or new road have been projected in the
South, and if the same ratio is OBJ
served in Western states-which is
more than likely-it is easy to see that
the next two or three years will wit
ness an unusual period of new railroad
construction. This will. of course. be
beneficial to the country at large and
promises continued prosperity for the
iron and steel industry. But what will
be its effect on the stock market?
Prices of seucrities are already so
high that satisfactory investments are
difficult to find. The bond marke is
still congested by a lot of unstable
issues held by bankers in the hope of
lodging them in investors st.ong
boxes. Ordinarily an increase in the
supply of securities is apt to weaken
the market, especially when values
are high. This situation leaves the |
of new railroad issues a |
somewhat difficult problem. The needs |
Of the railroads are imperative for the |
is growing and these great |
projects once started cannot ne held |
up without involving serious loss. Ow
ing to high rates for money and a
limited demand for new securities the |
ailroads have once more been forced |
% the unwelcome expedient Of short |
ERIN notes in the expectation that |
when monetary conditions become
more satisfactory they may be chang
ed into fixed obligations. With such
possibilities. therefore, the outlook is
lot favorable to very low rates for
money and the efforts necessary to
nance these new ventures may be an
important factor in the markea for
'ome time TO come. They will natur-
lily lead our great bankers TO efforts
or preserving a healthy tone in both |
he security and The money markets.
he situation. although conflicting and
not being unfavorable to
uch operations. Much will depend on
his seasons harvest. Bountful crops
Il present prices will insure another
year of general prosperity. Winter
wheat promises a bumper yield and
,rop reports generally are satisfac.
DRY. The cotton acreage this year will
show an increase of about 9h per cent
Dr 2.7o0,000 acres. What the effect of
Door crops would mean it is difficult |
. predict for the reason that our far
ners are in such improved financial
that single poor season
would not involve the serious conse-
Itiences of five or ten years ago. Since
hen our farming classes in both the /
'outh and West have not only gotten
lnt Of debt but generally have money :
n the bank. This is a very different
ituation from the time when the ma
Drity of our farms were heavily
nOrigaged. Consequently poor crops.
rhile they would undoubtedly check |,
would not be such a calam
- a. III iOi hiti ttbltHH Dul at DttEt4li
here is no reason for any but hopeful
Jews.
Business conditions continue gener-
lily satisfac DRY. There is more or less
omplaint of high prices, and some
ece sion in values on commodities a.
'ell as securities would no doubt BE-
But until supply overtakes
emand and credit has been strained
. the utmost-neither of which con-
ngency l. yet in sight-it seems use
sss 10 expect any important reaction.
rom the West all accounts are favor {
bic and optimistic. There prosperity
ontinues al a high tide. The South.
DO. is hopeful and is making rapid
rOgress. Some uneasiness is mani Z
ssted over the political outlook this
lll, and also at the continued expo
res Of graf in corporations, In the
alter agitation. however, there is NJ