The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-10-22

of England rate came like a bombshell
in the market The bank rate Is now
6 per cent, the highest rate since the
Barring failure sixteen years age. This
, step was, Of course necessitated by
tho impoverished condition Of the
Bank Of England reserve, and the
prospect of fresh demands upon It's
stock Of gold from Egypt and the
United States. The decline in foreign
: exchange in his market on Thursday
wac plain intimation Of our inten-
ton to draw more gold from the other
: side and the advance in the bank
rate was undoubtedly IN sheer self
defense The consequences of this
= action can hardly be predicted at this
writing. lis effect upon stock specu-
lation must be unfayorable, and prices
must fall more or less in consequence.
We have, for the time being at least,
used up all available supplies Of
money and our credit system is great
Ily extended; NOT perhaps to the limit
OF soundness, yet quite up to the mar
gin of safety. 1t means that there is
: an end coming to reckless specula-
ton, and chat nothing butt iquidation
Of greater or less severity can restore
equilibrium.
we nave had our high rate money
troubles th's tall; row England and
! Germany are apparently having theirs.
The Bank Of England's supply OF gold
is lower than at any fine for he mast
thirteen years and Is at least $4,000 4
10o less than it was ten years ago,
Notwithstanding that during that time
England has received from South
Africa and Australia vast amounts.
The United States and Franco mean
time have materially increased their
gold holdings, Germany's war chest
! is supposed to hold a very large sum
OF gold as reserve in case OF war
| This, however, takes it entirely out
Of range for any other use, Russia
| has vas sum Of boarded gold, which
| is not surprising owing 10 the DISTRICT
| that has long prevailed in that coun
fry and the Russian treasury must al
$50 have a large amount of gold as
back log to provide for emergencies.
Still, considering the big output of
gold fer the last several years, which
| Is constantly on the increase owing
to the new machinery and methods to
extract il, there is an immense guam
fifty OF the worlds gold to be account
ed for II is true that with the extray-
aeanco Of the age in which we live.
tho arts in various nations are con
Stunning great amount; yet the disap-
lpearance Of a good deal is a mys-
Itert.
The stock market has worn a tired |
appearance. Occasional spasma OF |
Hatrength were infused into a few of |
the specialties; but these appeared |
to be Of a purely temporary character |
and it is quite evident that stocks are |
being quietly fed oft by the large |
holders on every favorable opportun- |
itN The most serious impediments 10 |
bullish operations are the political
and monetary problems The latter
did show some Improvement, but the
prohibition of further imports by The
advance in interest rates abroad will
mean the shifting back of many of
these loans TO this side as they ma
ture. Until the middle of January. at
least, some very skiIlml plotting viii
have 10 be done by hose who control
the New York money market, If we
are to avoid further serious strin-
gency. Contraction and not expan-
sion should be the order of the day.
Crop demands seem to be at their
height. and funds seem disposed TO
return slowly from the interior. espec.
tally in view of The general activity in
business. This week special demands
were made by Canada, owing to bank
difficulties ia that section. The
amount required was not large. vet II
was quite sufficient to perceptibIv
harden tho rates for call money. Time
money is somewhat easier. and this is
the best feature in the entire financial
situation. The political campaiep is
low al its height and both sides are
awaiting the final outcome. Very i'm.
lortant issues Of an economic nature
ire at stake. and The results Of tho
tDuprDe ipua1 gIgCtt.-r .,.f1f H. .. .