The Cairo bulletin., 1907-01-14

rise on the stock exchange inaugt
rated last week was Of short duration
! 1t was soon discovered that investor
were not investing at the presen
level; also that the few big hOlder
who have dominated the market TO
months past were quietly feeding on
stocks on top Of the advance. Con
tinued high rates for money likewise
deferred stock market operations:
while still another element of discour
asement was the disclosures brought
on in recent railroad investigations
besides the Street was taken by sur
PRISE by the announcement on Thurs.
day that the Pennsylvania Railroad
company would issue 100000, 900 ad.
dllional bonds and stock to provide
for intended Improvements, this com.
| ing so soon after the late President
Cassat''s death who a sohrt time pre-
! vious thereto gave assurances that
his road had completed negotiations
for all the money needed TO provide
for the Improvements contemplated
/ TIL, combination Of adverse cir
ctmstances quickly subdued all bull
iah aspirations and gave the market
a somewhat mixed and unsettled ap.
pearance.
There has been some Improvement
in the monetary situation this week,
but rates for both call ana time loans
are abnoemally high. Bank reserves
are at the lowest level for many
years at this period. This the sea-
son when they should be rising. and
the question is how can reserves be
replenished under present conditions
Not much dependence can be placed
upon an immediate return Of funds
from tn interior Owing to high in
terest rates here considerable amountt
of crop money was sent back before |
the close Of 1906, fully $4,000 900 be- |
fore January. This fact aud he cur ,
rent large demands for money in the
interior are likely TO loosen or delay /
future receipts from that source. For
tunately the secretary Of the treasury
has extended the time for the return
of treasury deposits from January 20
and February ], to February Is, re-
apcctiyely This action will afford
some slight relief Another good fea-
tHre is our foreign trade balance
continues exceedingly satisfactory
showing a large surplus of exports
over imports. This would warrant ex-
pectations OF gold imports next spring
were it not for the conservative atti-
tude of the Bank of England. which
seems to have Tesolutely decided to
protect and build up It's own reserves
against future contingencies. This pol :
icy will make it more difficult for MS
70 procure gold from abroad; al ,
hough in case Of emergency we shall
10 doubt secure it. since Paris is dis
1osed 70 assist London, thus enabling
ne latter to part with gold in event
II the demand from New York becom-
ng insistent. The safety of the money 4
situation requires hat interest rates a
ange al 6 per cent at least. This G
will keep money mere and tend To l
ttract it from elsewhere. while a low u
ate would send if away A low II
money rate would advance sterlingl
Xchanee 10 the gold exporting point, =
esides causing considerable money! "
Janed on Wall street by out-of-tOwn
lstitutions 10 be called home The
e,t source Of relief to the money
larket in the immediate future will IS
g through government dsburse. "a
rents which are always large in the ST
arly months Of the new year, The al
honey needs Of the big railroads dur Il
lg this year are likely to keep inter- d
81 rates up for some time 10 come 81
The money market continues to be W
ne key to The stock market. Our sup st
~ Of currency has been depleted BIZ
'ade activity and high prices; ana
ur supply of capital is also being ok.
austed by the great mass of new un- q
ertakings. as well as by the Losses G,
the San Francisco fire and other ii
isasters which wasted immense
inns of capital The credit situation
still under much strain, and a. our
lonetary resources have been thor
ushly exploited through the means
Ist referred TO, there is but one rem f..
iy, and that is the one repeatedly "
aferred 70 in these adylces-that of r.,
and liquidation This ~.
rObably can only b accomplished at
he expense of falling prices-a con- "-
ngency that. unwelcome though it. =,
2. must be recognized and accepted. ~,
hi does not mean that We are To :.
ave an immediate and precipi,ate
N. So long as our railroad and in E.,
1strial properties continue upon
lch a profitable basis. market de- =
ines are sure to find great resist
ice and every pronounced decline is
city certain to be followed by sub -
anual recoveTies. The outlook. -
erefore, is for an irregular and pos .
bly, feverish market. For the first y
me in many months there are signs .
a reviying short interest. and some
the market leaders are already be =
aved 10 be short of their special =
yorites. This Of course. would .
Owe an -efnnseHt-r,f strength in case ~
sharp declines. For months the =