The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-05-18

lne IlfSl 10 regain lHelf Hudncla
health.
Some Encouraging Features.
! The outlook for the stock market
is not without some very encouragins
features. The monetary future, TO
instance is clear of all important
trouble for some months to come
Funds are superabundant. and likely
TO so remain owing to our imperfect
F, system for contraction OF the cur
rency. Rates of interest are low IN
consequence, and will probably re
main low until crop-moving begins III
August Such conditions are infla
tionary and, of course. stimulate gold
shipments; $20,000.000 having already
gone back since the panic. This
movement causes no uneasiness IN
monetary circles; in fact. we could
easily spare the $l00000.000 imported
| here during the panic without disturb.
| ance. Perhaps the most unpleasant
! feature in the money market Is the
rapidly growing government deficit
(which will compel large withdrawal
lof public funds in depository banks.
However, as already stated, the
money market has a clearer outlook
than usual for three months ahead
and this is the most stimulating fac
tor in the stock market operations.
The next bullish element is the crop
situation, We are practically sure Of
a big winter wheat crop, probably the
second best on record: for the har.
vest is only about two months distant,
and recent abundant rains have we'll
soaked the soil leaving the plant in
high condition and comparatively free
of danger from drouth. The condi-
tion of winter wheat is now so fine
that drop of 3 or points in June
and July would still give promise for
big crop.
Planting Conditions Satisfactory.
Conditions for planting spring
spring wheat and corn are also very
satisfactory, the soil being in excel
lent condition and favorable to a good
start, Cotton, too, is beginning well,
with the prospect of not reduction in
acreage. All indications thus far
have been on the side of a good har.
vest although occasionally tempera-
ture has been too low and precipita-
ton too great, The chief drawback
to the stock market is that free real.
iZation may take place unexpectedly
at any time, prices having undergone
a big advance. Railroad traffic Isl
exceedingly dull over $4,000 idle
care being reported at the close of
April, which was the largest total on
record. This means large decreases
in gross earnings; but the railroads
are making heavy cuts in expenses,
and postponing improvements, sol
that net results, while poor, are less
so than was at one tie expected.
There are Indications that me worst
has been seen in general business,
and that improvement will follow
good crops and satisfactory nomina-
lions. Among the good features In
business was the open reduction of
prices in the iron trade. Secret cuts
have been made for some time past
and the lower prices established will
probably result in stimulating orders.
Some improvement can also he no
ticed in the cototn goods trade in
of the reimbursement
which has taken place in that indus
try The stock market has thorough
ly discounted all bad elements and is
now anticipating these better fea-
lures. Operations in the stock mar
ket, however, may be conducted here
after with increasing caution on top
of present advanced prices. Owing
to the reasons first stated there has
been powerful manipulation; and
while the market is under strong and
capable management 1t is also spec
tally exposed to unexpected draw
backs, because of its artificial char
acter. AS long as stocks remain in
the present strong hands, however,
no serious reaction is to be expected,
but when they unload on weaker
shoulders then look out
HENRY CLEWS.