The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-10-15

rates have declined, SIX months time
money heing quoted at 5&N6 per
cent-the lowest rate since the crop
movement began This relief is, If
course, due to gold imports. Treasury
disbursements, and a probability that
The efflux to the interior has reached
its height. From now on easier local
conditions should prevail and bank re.
serves should rise until the end of the
year, provided no disturbances occur
during the interval and the shifting
back Of American loans in London
fdoes not proceed too rapidly
The Bank of England rate was al.
yanced from to per cent, and the
Bank Of Germany from 5to per cent.
These are extraordinarily sudden and
high advances by these two institu-
tons. They have but one meaning;
that is, notice to Ne,g York that those
| markets are closed to us for the fnan-
cial relief upon which we have closed
|relief upon which we have hitherto
/ depended. Fortunately, we are now
| beyond the necessity Of assistance
from that quarter, having secured over
| $40 100000 of gold this autumn. so
that the precaution is somewhat tardy
and Intellectual. Nevertheless. the ac.
ton Of these two conservative and
very influential institutions is signif-
cant and cannot be wholly ignored
for interest rates have advanced in
all European centers II is plain we
viii get no more gold from Europe ex-
'cept under extreme pressure. and that !
"a further extension Of American cred |
it in those markets could only be made |
with difficulty, In this Connection it is |
worthy to note that many American |
finance bills mature during the next
few days and it will be interesting to I
observe how these obligations are 10
to met. 1t is understood that a con.
siderable amount of American seen
rites have recently been returned to /
this market, presumably collateral put
up against foreign loans which have
been liquidated or retransierred rack \
10 New York. 1t is to be hoped that
amounts of thes loans
have been liqudated The supply of
export commercial bills has been lib
eral, although recently somewhat cur,
tailed by the advance in cotton. The
New York money market is in no
to make any further import
ant expansion in loans: and. if pm.
dcncc prevailed, contraction would
hp no arInp II b, Ion, Ia,
reserves and to ensure re-
coYery from the present over extern
sion of credit which prevails in all
parts OF the United States.
Tho condition OF the money mar. ,
ket and the high level of prices would !
make the present inopportune for an
active bull market were It not the
irresistible manipulation OF a few pow ,
erful operators. Prices at times have ,
shown great strength, particularly =
lnder lead of the Steel issues. which ,
IRE making extraordinary profits: and :
which are expected to benefit largely f,
BY the recent ore deal. So long as
general outside conditions remain so
ayorable and money reasonably easy.
t seems impossible to restrain specu- a
atiye operations, 1t is known that =
many Of our largest holders are In =
ayor Of higher prices so as to effect r
mere complete distribution OF stocks. -
nd this fact Is readily taken advant- Il
sc of by bold operators who follow a
uch leadership and who naturally =
}oE more to profits which can be II
1ade in the immediate future than to II,
he consequences of excessive inna-
ion which must be endured later on. Il
If course. The higher the market Is
orCed the more certain will be the =
hances Of reaction and speculative ~
ppoumity; but the tremendous re- n
onrccs OF present leaders are an elc- ~
lcnt in the situation which cannot be n
vcrlookcd. Our big spectators are "
very strong position and being /,
'adcd with urplns stocks must strain n
very means to secure The advantages 81
most exceptional business stu l.
ton; as also must those who have II
cen carrying new issues hitherto I'M. +,
marketable. "a,
The October Government crop re- o.,
5rt was highly satisfactory, indicat-
ls record-breaking crop of corn
mounting TO 2.7S0. 000.o90. or nearly
100000 in exec. $ Of last year. The
heat crop shows a reduction OF II
bout 20,G90.o00 from earlier est- ST
ates. but the yield is still expected II
, reach nearly 74O 100000, or only "
bout S.0o0.090 bushels less than the ri
Ugh record crop Of 1901. Some dam a
&c has been done 10 the cotton crop il
y The recent Southern storm. vet the e
-omise is for a fun yield. SO there Is 81
7thing 10 interfere with continueT %
for this rason What the d
ext season NAV bring forth will bee "a
after Of extreme importance After
lch . long succession OF good hat-
ssiF. o. seems almost too much - s.
spcct another year or such good for :.
me Situated as we are upon a high :,
nnaclc. any crop failure in 1907 e
ould be a matter Of more than usual Ia
Importance That, however. is +. ques- =,
on too far ahead for present consid- hi
alton. During The next few weeks ii