The Cairo bulletin., 1906-07-16
THE INDIFFERENCE
Shown In the Stock Market, Says
Henry CIews in His Weekly Let
ter-Points on Business.
Special BY Letter.

iHuiIeFeHce OF the STOCK market 10
good news is unusual. Favorable crop
reports. increased dividends and i'm
| proVement In the monetary situation
are all incidents which appear to slim.
ulate selling rather than buying Of
securities. OF really discouraging
news there is little, but the bullish
interest in the market is apathetic
and a discouraged feeling prevails
IN speculative circles, though not suf-
ncently strong to stimulate any ag-
gressive bear campaign. The fact
that stocks have declined 10 to GO
points and that a great deal of drastic
liquidation has already taken place
seems TO be forgotten. Apparently
there is an outpouring of stocks from
somewhere, and the qeuston is, from
where? II would be equally interest
ing 10 know where these securities are
going. One theory is that large inter
ess with exceptional facilities for in
formation forsee a bushes reaction
| in spite Of the present activity. and
are anticipating its effects. The more
probable theory, however, is our lead
ling banking interests recognize that
| high rates for money mean lower
prices for stocks, and that, coupled
with the large increase in new issues
iof various sorts, readjustment be-
| ween money rates and stock eX-
change values is now in progress.
This reimbursement has been going on
for fully six months and the market
provedsituation greatly relieved and
improved thereby. Speculative ac-
counts are being extensively liqui-
dated. The bond market is still over
loaded with unstable isues and new
supplies are still forthcoming. In
short, there is no sign yet of any
abatement of the demands upon the
money market. Many new enterprises
are under way which will make fur
Their demands upon our monetary re-
sources: hense, the firm rates for
time money. There has been no i'm
portant contraction in loans, the re-
port of the Comptroller of the Cur
reney for July Is showing loans and
discounts of the national banks to be
$,20G 100000, compared with $3.50
900, 900 in May, 1905. This is an in
crease of over $3000OO00O in thirteen
months. sIW
The crop situation is eminently sat
isfactory. A wheat crop of over 1922
000,000 bushels, as indicated by the |
1oSt Covnrn nnout rapOrt iO naari, IN |
100000 bushels greater than the pros. |
poets of year ago. A corn crop of q
700.000000 is the present promise, |
which is almost a record crop and So |
600 Oo0 bushels above last years indi- !
cations. A good cotton crop is also
promised, the average estimate being |
ll,000,000 bales. Should we have n
large wheat crop, that means much |
for the farmer inasmuch |
as 1t is large money producer. A big
corn crop means much not only for
the farmer and the railroads. but also
for the many directions into which il
enters for consumption, such as pork,
beef, whiskey, storch, glucose etc A
large cotton crop will be beneficial. in
as much as the larger portion of II
goes for export. and at present good
prices will yield a large amount Of
sterling exchange with which to settle
lur foreign Indebtedness.
The general business situation con-
inues promising. A more conserva-
i've tone prevails amongst the lead
ng business men than a year ago, and
his should be regarded as a favorable
Our iron and steel
rades, of course, show no abatement
N activity, which promises to con
inue for another six or twelve
months. The weakest element in the
business outlook is the excessive spec '
llation in real estate. Signs of over
loing there are beginning to multiply, S
md il is becoming increasingly diff l.
MT TO place real estate mortgages. |
lartly because lenders are becoming S
Iistructful of the situation and partly |
because financial institutions making !
specially of this business have taken I
bout all the mortgages which they {
are 10 handle. our life insurance cont
anies having invested freely in this Z
ERECTION in preference TO high-priced
onds. Restraint is evidently needed
pom reckless real estate operations, -
nd check will probably first come !
rom banking souces. .
Some clearing of the monetary sit q
alton has been afforded by Secretary T.
haw. His withdrawal of the $4,000 a
90 recently advanced to the banks u
, facilitate gold imports was wise
nd timely, inasmuch as it strength N
ns the resources at his command and n
laces him in a position to lend assist ii
nee in the autumn should occasion
squire. The foreign situation is but n
tile changed. Al though bankers i'm il
arts are more or less concerned n
bout developments in Russia. there n
still an abundance of funds at Paris f.
eeking investment. Partisan finan- n
ers. however, have important Gov q
'nment and municipal loans impend- in
e. consequently more or less disap- r.