The Cairo bulletin., 1906-05-21
VERY SATISFACTORY
Continue General conditions---Money
Market Permits No Excessive
Speculation.

| parted better FEELING IN the stock
market. Very considerable recovery
has already taken place from the low
level reached after the San Francisco
catastrophe, and al times indications
pointed to a still further recovery. the
short interest has, however, been con
sidcfably reduced, ana profit-taking Is
/ more or less in order after so substan-
tial recovery The Immediate future,
! therefore, promises no continuous
movement in either direction, or moth.
| ing more Than reasonably goad trad
| ing market. operations still being
largely OF professional character.
Lower rates ar quoted for time
money with freer offerings, which
makes a more satisfactory money sit
uation. 1t is quite evident that there
will be money enough for all leeii-
maze requirements until the autumn
demands assert themselves. New York
has persistently been shifting its bur-
den upon the foreign markets. When
San Francisco needed money The de-
mand was Immediately transferred 10
Europe, and quite number of our
syndicate operations have recently
been aided with foreign money. Even
stocks peculatively held have been
carried quite freely IN the Loldon
market on better terms than could be
had here. Europe has been taking our
securities with rather more freedom
than of late particularly bonds and
shoit term obligations. Il considerable
portion OF the latest Pennsylvania
loan having thul been disposed Of
American credit abroad is fortunately
in good shape and should We need fur.
ther accommodation we will have no
difficulty in obtaining them provided
we pay the rate. II is said that Paris
would readily lie; us have another $40.
100000 or $4o000,090 if needed, the
disposition of the foreign markets 10
offer us assistance being, of course.
the result of more peaceful condi-
ton abroad and our own strong gen
eral condition. Our bank reserves i'm.
fortunately are much reduced while
the great expansion in Tomas continues
undiminished. 1t was hoped that lqui-
dation in The stock market would have
strengthened the local banks. and the
only explanation of failure is that ma
turing loans on the other side have
been re-transferred to New York
There are many millions Of these for.
eign loans, estimated by some as high
az, $500, 000. 600. which will have to he
met during the next few months: ana
II is the settlement of these which Is
most likely to delay the rebuilding OF
the reserves of the associated banks.
Moreover, San Franciscos demands
are not entirely satisfied, and these
may temporarily delay returning ease.
Our gold importations during tn 2
last month have been unusually heavy
the largest during the last
decade-and further shipments may
be In settlement of the San Francisco
losses by foreign insurance companies.
The foreign exchange market and our
trafc must eXeu an i'm
portant influence. Bafore vcyy long fu-
turc cotton and grain bills will be
available in the exchange market.
Our foreign trade Is growing at an al
most record-breakig pace. The i'm
ports of domestic products in Aptil
were SlO7 d00, 600. or $4,000. 0l0 larger
Than year ago. In fact they have only
been exceeded three times. Our eX-
ports in April were 9Tli.500.0Ol. or
SIG 900. 900 in excess of last year. This
leaves the trade balance for the month
S37 .Od0,00l in our favor. compared
with $4,000, 600 a year ago. For the
ten months of the fiscal year the ok
cess of exports over imports has been
S4G7, 100000. or $12S,000. 400 more than
a year ago. Our gold imports in April
were $l5000.000. compared with S2.-
50o.o00 a year ago: and for the Ten
months Of the fiscal year ending April
gold import have been sj9,000.000 orI
81 0.000000 in excess Of the same time
last year. These returns demonstrate
t-ifAh NV nv tteAlOhsl movements AT
entirely In our favor--a factor of SUI
prema importance at a time when our
domestic money market not only has
before il all the demands which II can
possibly meet, but would be obliged TO
seek assistance from abroad in case
Of further expansion. Much temporary
relief has been given to the situation
by Secretary Shaw's expedient of max
ing gold imports Immediately available |
Back of this assistance. however. re-
mains the fact that the money market |
is in a condition that will not permit |
of any excessive speculative move
ments. On the stock exchanga we have
had rather severe liquidation. which. |
so long as 1t has been endured with |
out disaster. has been distinctly bene
fetal The technical situation Of the |
stock market is much better than for
many months. and a moderate harden !
ing in values would be no surprise |
bur would NEE with reasonable JUST |
fcation.