The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-06-03

Special to The Bulletin.
New York, June lit has been
week of considerable fluctuations II
the stock market business being som.
what interrupted by the Intervention
OF Decoration Day. President Roose
velts address at Indianapolis was de
cidedly reassuring, and fully confirm
led the repeated statements in these
|adyices that he stood for no harmful
federal interf renee with the railroad )
but simply desired that standard OF
| fairness and honesty in management
which would disarm hostile criticism
and in the end benefit investors quite
as much as shippers. If the presi
| don't succeeds in putting an end to
railroad abuses, as it Is 10 be hoped
| he will the result win be highly bene
| fetal not only to the country at large
but also in financial and political cir
J cles. His frank statements should
stop for all time the injurious mis-
representations fhis attitude which
have been SO persistently circulated
apparently for the futile purpose of
/, forcing him to yield or compromise.
! Current news was hardly of a IA
vorable character outside Of the pres
dents address; but in view of tho
| fact that active railroad shares have
undergone decline of nearly 10
points during the month of May, a re
dictionary feeling Of more or | SIS
strength developed towards the mid.
die of the week. especially when the
contents of the presidents address
became known. The growth of bear
ish feeling had encouraged the devel-
opment OF short interest. and buy
ing to cover materially aided the ad-
vance.
There are two factors of consider
able Importance which may or may
not have been fully discounted. Tho
first of these is the continued out
pouring of short-t5rm notes and the
prospects hat more will follow. These
persistent demands of the railroads
for new capital come at most in
convenient time Capital Is really
scarce the world over, the available
supply having been practically exhaust
ed by the prodigious activity in bust
ness and the creation Of new enter
prises during the last few VI ars
There Is no method of creating fresh
supply except by waiting and saving
precisely as the individual must DO
when he has exhausted his bank ac-
count. Our chief source Of new cap
ital is profits of business at home. We |
borrow relatively much less from
abroad than formerly, ad the foreign |
markets are less disposed 10 lend than |
usual for the reason that they find |
active employment themselves fol
capital, Unfortunately, the new sup. |
ply Of capital promises to grow with |
less rapiriiy than in the last few |
years, because of The diminished pro-
fits In business which high costs OF
production and materials are causing
There are many p rfectly Legitimate
lpment today which are absolutely
owing to the impossible
ty of securing financial backing be-
cause the railroads are absorbing all
he new capital that is obtainable
These shortterm notes issued by the
exert a doubly depressing
If CT on the stock market. In the
irst place, they tend 10 keep up the
ates of interest and thereby depress
lot only the bond market, but also
many of the first-class railroad com
non shares. The latter, 1t is argued
must meet the effects of probable
BUSINESS reaction and the presidential
lection within the next two years
there will be any reduction
n the common stock dividends or not
S a result of these influences remains
0 be seen. A second consideration is
hat many chrewd investors regard
he short.term notes-with their high
ates of interest and the certainty OF
being redemmed at given
ime-as more stable inves ments for
be next two years than the average
abroad stock which must face the un-
ertainties referred to. These infiu.
nces have undoubtedly exerted per
depressing effect upon rail
Dad shares in general
Another elem, nj of depression has
cen the cold aud backward season
making the crop outlook more unfa-
orable than usual at this period Of
he season. There is no doubt that
luch of the reported damage 20
heat has been exaggerated. The sea
On is very late and some injury has
esuted from favorable conditions.
ut good weather in June and July
light easily bring the wheat crop up
} the average. At present this coun-
y is not threatened with n VIII al
mime: and short crops on the other
de are quite likely to result in high
rices, which will be profitable to cur
Irmers and amply compensate them
IT any mod rate decline in yield. A
cry considerable surplus was carried