The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-09-16

and bonds by the city of New Yorl
was distinct success the subscriI
lions were more than five-fold tn
amount offered. But from the viey
lpoint of the bond and investment maj
ket the result was not so reassurine
The securities offered are tax-exempt
and when the tax is considered the,
rank as a per cent security TO
which 102-about the average pric,
lobtained--is certainly not favorable
basis for distribution when ii Is con
sidered they have behind them tht
credit of the metropolis of the ma
ton. The sale indicates that we are
clearly on a new investment basis
and this in turn means that other
high grade bonds must come nearer
to this basis. The result of the sale
NATURALLY failed to stimulate the quo
ltations Of Stock Exchange securities
| There had been quite substantial ac
ltiyity, especially by professionals in
purchasing in anticipation of a large
iover-subscription and experienced
operators began selling both in the
form of profit taking on these an
| ticipatory purchases and on short ac.
count even before the proposals We're
| opened, on the ground that last week )
advance had fully discounted a sue
cessful offering and that any unsatis-
factory features of the sale would
be very promptly reflected. The
course Of the market fully justified
the soundness of the argument
The week has seen somewhat OF a
change in the money situation. Rent
al rates for time funds are rather
easier, while call accommodation IS
still further restricted Coincident
with the offering of securities by the
municipal government the final in
stalment of s35,000000 was paid over
on Tuesday by the underwriting syn
dictate that financed the S75,000,000
convertible bond issue of the Union
Pacific Railroad company; this caused
La temporary furry in call rates to
|GM per cent, but there was somewhat
Of reaction from this figure later in
the week. Rates, however, did not
reach the low range that has recently
been so general, and as we are at tho
beginning and not at the end Of the
cropmoving period il is hardly prob
able that any return to the low figures
will occur this year. A feature of the
week has been the drawing in of call
loans by some Of the large interests;
who We're prominent In bidding forI
the city bonds and the distribution OF
the same among the larger commits.
sion houses for fixed terms, chiefly
for six months at 6 percent. though
in some instances the term merely
covered the turn OF the year. Their
is of course, the Interpretation to be
given this action that these large in
terests are themselves better satisfied
to lend their money at good advant.
age than to invest i'm securities even
at the present low range OF quota |
tons. The copper situation has been |
q further source of depression, prices |
of the metal being still further re-
duced, while the tendency of banking |
interests to refuse accommodation 10 /
carry additions to the large stocks !
the copper companies have on hand |
has brought affairs i'm this direction /
to crisis and forced upon the lead. \
ing copper producers the desirability |
Of restricting production to prevent |
he accumulation of their products
becoming unmanageable Added TO
has to great extent been the ,lomin-
ating influence in Amalgamated Cop
Ders policy leaves the situation in a
much more unsettled condition than
i he were at the helm. In the case
Of copper we have what may be term
ID the first distinct signs of over
production at inflated prices and of
he dependence of all the great pro
lucts upon the money market for
facilities to finance them
until they can enter consumption.
Under ordinary conditions ii can only
De a question of time when other pro-
luets must give way before an en-
oreed contraction of the demand
With capital tied up as it is today in
absolutely fixed form. general build
ng and construction must necessar-
ly gradually decline: mortgages. for
Instance, cannot be obtained on such
! basis as to permit building opera
ions to be conducted at the tremend-
nus pace established during the last
ew years. the raiIroads-the greatest
actors in the iron and steel tra.le-=-
.snnot obtain funds ezsspficispt +
'orable ;tesans so that 3eey can .par.
hasc rails in quantities above whst
ire absolutely necessary or purchske
material for bridges AMI
terminals; and the same spirit of
must naturally spread to
II mechanical industries. This is a
eature that it is well to consider
n connection with the position Of the
Industrial section Of the stock market
: will be recalled that railroad secur-
ties have experienced a much great .
n decline that industriais from the
Ugh range Of quotations that culmin-
ted last autumn. and lenders are for
his reason rather iHclined 10 discrfni- !
nate to .. greater degree than usual
r-afs.cf 81 -s....,-4s-..- d.