The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-08-13
Stocks = Bonds \ Cereals

as selling basis; for these gentle
men recognize more readily than 9th
ers that present conditions cannot
last indefinitely,
There has been some Improvement
in the monetary situation. Bank re-.
serves here are low, and, while the
West is in good condition financially
crop demands are quite likely TO take
% to 80 millions og New York money
during the next few weeks Prices of
wheat, cotton and corn are lower than
year ago, and there IN already a
large export movement in wheat in
progress. These conditions create a
good supply of sterling exchange, ana
materially facilitate handling Of the
crops. Western bankers are confident
of this being done without much diff
Guilty Our bank note circulation is
S57 600, 600 larger than year ago; the
Panama bond issue will allow of fur
Their important expansion and the
treasury now holds a surplus much
greater than a year ago. good por-
ton of which ii could deposit in the
banks from whence it came, It IS
known that Secretary Shaw would
about this eXpedient if necessary.
BY one means Of another therefore, it
looks as if the money market would
escape any Very severe or protracted
str,ngency during this autumn. Firm
rates will prevail, the time money
market proving that and temporary
high rates may occur; but there will
be sufficient funds available for all
Legitimate business requirements. Any
.eXtended stock speculation at present
level of prices will quickly run up
against a stiff money market.
Railroad prosperity continues phe-
nomenal, each day furnishes fresh evil
dence in the form of good reports,
During the six months ending June 80,
1906, earnings were reported for 1872.
900 miles, or So per cent Of the entire
country, aggregatng $94l,000,0 900.
This was an Increase of over "A per
cent the largest rate of gain since
1900. when the increase was slightly
business activity was the Clearing
House returns for the seven months
ending July 80 Their total for that
period was $91 ISL 100000, an increase
of II per cent This gain was excep-
tionally we'll distributed throughout
the whole country. showing that spec
ulation in the financial centres had
no important part in these figures.
For the future good trading mar
ket is promised Outside conditions
are splendid in every respect, and
large railroad traffic stimulates eXpec-
tations of better dividends to stock
holders Basic conditions therefore
are sound But these have all been
well discounted. Prices are high
they have just had a recovery of 10
points and over Manipulation Is
very apparent and operations in some
quarters plainly suggests inside real
i2ing under cover. Meanwhile, there
Is little outside buying and the in
vestment demand is slack. because in.
vestors find many attractive oppor-
tunities outside of the stock market.
On the other hand. the big capitalists
are carefully nursing the market, and
in the absence of unfavorable devei-
opments, godd stocks are likely to be
purchase on the decided breaks, or
sale upon pronounced rallies. An
other adverse feature Is the advance
in call money rates resulting from
Western crop demands, which are al
ways felt at this center in spite Of
contrary theories.
HENRY CLEWS.