The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-01-14


rated last week was Of short duration
! II was soon discovered that investor
were not investing at the presen
level; also that the few big holder
, who have dominated the market fo
months past were quietly feeding on
stocks on top Of the advance Con
. tinned high rates for money likewise
deferred stock market operations
while still another element Of discour
agement 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 5000. 1000 900 ad,
ditiona bonds and stock TO provide
for intended improvements, this com.
ing 50 soon after the late President
Cassat'S death who a s0hrt time pre-
Flous thereto gave assurances that
MS road had completed negotiations
for all the money needed to provide
for The improvements contemplated
This combination of adverse cir
cunatanccs 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 cali and time loans
are abnosmally 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
Ireplenished under present conditions
Not much dependence can be placed
upon an immediate return OF funds
from til interior Owing to high in
terest rates here considerable amount
OF crop money wa. sent back before |
the close ct 1906, fully $4,000, 900 be. |
fore January. This fact and The 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 20I
anu , WI lAttl J., ~ L tbi Wd-S 10, IL
spectiroly. This action Will afford
some slight relief Another good fea-
ture 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 fesolutely decided 10
protect and build up It's own reserves
against future contingencies. This pol !
icy viii make il more difficult for MS
10 procure gold from abroad; al :,
though in case Of emergency we shall !
no doubt secure it, since Paris is dis
posed 70 assist London, thus enabling
he latter to part with gold in event
# the demand from New York becom-
ng in- stent The safety of the money 4
situation requires that interest rates a
ange at G per cent at least. This G
viii keep money mere and tend toI U
Ittfact it from elsewhere. while a low u
ate would send il away A low Il
money rate would advance sterling
Xchanee 10 the gold exporting point, =
,esides causing considerable money! "
Janed on Wall street by out-of- own
to be called home The
est source Of relief to the money!
larket in the immediate future viii IS
e through government disburse- ia
lents which are always large in the st
arly months Of the new year. The al
money needs OF the big railroads dur Il
ne this year are likely to keep inter di
81 rates up for some time to come 81
The money market continues to be W
he key 10 the stock market Our sup st
ly of currency has been depleted by
'ade activity and high prices: and
uf supply of capital is also being eX-
austed by the great mass of new I'M Ii
ertakings, as well as by the Losses C
( the san Francisco fire and other I'll
isasters which wasted immense
lms of capital. The credit situation
still under much strain, and a. our
lonetary resources have been thor
ushly exploited through the means
l>t referred TO- there is but one rem :,
dy, and that is the one repeatedly ~
aferred 20 in these adyices-that Of ="
)ntractiou and liquidation. This =.
robabIy can only b accomplished at
De expense Of falling prices-a con =.
ngency that unwelcome though it !
e, must be recognized and accepted. ~
his does not mean that We aIe to -
ave an immediate and precip ate
~. So long as our railroad and in l.
lstrial properties continue upon
leh a profitable basis. market de r
ines are sure to find great resist
ice and every pronounced decline is
'etty certain to be followed by sub
autial recoyeries The outlook. y.
erefore, is for an irregular and pos .
bly, feverish markea For the first .
me in many months there are signs o
a reviving short interest and some
the market leaders are already be =
lved 20 be short of their special =
yOrites. This. Of course, would d
owe AN element OF strength in case a.
-HuF.F 9En1fra- U~,r Z q