The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-08-27
HENRY CLEWS' LETTER.
Special by Mail.


powerful financial interests to tax
every advantage of these circun
stances possible Without going int
the already familiar details abou
good crops, satisfactory business pros
poets, the great activity in industry
etc, the present situation is probabl
the most remarkable in the history o
Wall street. Not in the memory o
the Oldest operator has there been
time when the financial skies wer
clouds. The plans of our large opel
ators, therefore, need cause no sur
Iprise; they are the natural sequences
of the times. While their method
may have involved them in an out
burst of criticism, their objests arr
the same as those pursued by all othe
men in gainful employment The,
have large amounts OF stocks to sell
and the probabilities of of finding ;
/ profitable market are beyond theil
most hopeful dreams. There is moth
| ing unusual, therefore, in their pull
! ing together for this purpose jus
now their principal argument Is tina
of increased dividends, such talk be
ing stimulated by the large earnings
of both railroads and industrials
When this line of argument is exhaust
ed, others, such as new deals, etc, will
follows. Success in the present bull
| D,oVarOppt danapdc cntipoI,t y,non tho
extent to which the public joins. Hith
evto the latter has been exceedingly
apathetic partly because very skepti
cal at the prese tnhigh prices and
partly because they have frequently
found better employment for money
elsewhere.
The intoxicating effect of the Union
and Southern Pacific dividends was
highly contagious. Such advances and
activity as occurred in these stocks
were simply irresistible. and market
leaders were quick to take the lesson
and apply similar tactics to other
shares. Apparently the big men have
the market under full control Their
purpose appears to be to give prices
a substantial rise and then allow them
to recede moderately, avoiding any
disturbance of confidence and stimula.
ting buying by various encouraging
rumors. Thus far they have been un-
eXpectedly successful. very consider
able amounts of stocks having already
passed from stronger into weaker
hands. Whether the public has been
wise or not in entering the market at
the top and taking stocks which old
and experienced holders did not want
is a question now beyond debate. The
public is already in the market, and
the universal feeling in the Street is
that those in control intend TO carry
the market still higher in order to
facilitate continued distribution The
higher the level the greater the dan
ger of reaction, of course; but in the
present extravagant mood OF optimism
such facts are not regarded.
The chief obstacle to the present
vigorous bull market is the monetary
situation. Local bank reserves are
very low and in no shape for carrying
on a big continuous bull campaign at
this level of prices. Some relief may
be obtained by the release of Govern
ment funds, but Secretary Shaw is not
likely TO be in any particular hurry TO
invite public criticism by promoting
the speculative movement in New
York. The only genuine assistance
which the New York moey market can
find will be in gold imports. Unfortu
nately. however. none of the great Eu-
ropean financial centers are i'm posi-.
ton to part with any important
amount of the precious metal In
the middle of August the Bank of Eug
land held e37.000.0 900 gold. or only
c 500,000 more than a year ago: the
Bank of France held over e11G.O0O.-
)0D. or e200O,000 less than year
ago, the Bank of Germany held over
G54.000000 In the middle of August.
Or eS 100000 more than last year.
Taking the ten principal European
banks together. the total amount of
gold held by them on the date in ques-
ion was c403. 1000 900. which was
scarcely equal to their holdings Of a |
year ago, and this In face Of much in
,reased demands from various |
ources. There has been some talk \
IF gold imports from London Ex-
lerts calculate that London can spare |
bout e15.000.000. but Argentina
Egypt. India. and other colonies are
nsistent upon their demands at Lon
Ion. so that at the outside not more |
han e3.000 600 or e4.000.000 Of this
amount is expected TO come TO New
fark In case of emergency this sum |
night be increased somewhat for the
.imple reason that New York is bet
er able and more willing tn pay the
higher rate than gnv other bidder.
nd. consequently. more likely to Sc
ure the gold If wanted. The best
nance of increasing our gold supply 1
s in drawing new production fr1m
africa. Australia. the Kloniike, and
Iur own mines In this manner we
nay considerably add 10 our ock OF
old. In all probability We snail soon
10 shipping large quantities ut cotton
nd grain. Our manufactHtinc exports
~. !