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

Special
New York, May 16.-The stool
market continues to show strons
undertone. The situation is evidentl.
completely dominated by group o
strong capitalists who have an un
limited supply of cheap money "a
their command. 1t is perfectly plaI
also that these parties are determined
to lift up the market to still higher
i level, presumably for two purposes
first the distribution of securities ac
cumulated at a much lower level an(
second, the financing of new or ma
turing issues during the remainder o.
the year. In the four months since
! January LIST about $3.50 900, 900 new
II securities have ben issued, which was
only S50,000,0oo less than the same
period last year, while between $3.50,
100000 and $30O00O,OO0 additinoal OBJ
legations will have to be financed be
fore the close of the current year.
/ Whether this means another attack
Of financial indigestion or not during
the crcp-moving period depends large
! ~ on the course of business affairs.
Quick Profits Not Expected.
i Certainly the country is not ac-
| cumulating a new supply of capital
out OF earnings as rapidly as usual,
When trade is depressed, as now,
profits cannot be expected to accumu-
late with the customary freedom The
amount of capital available for in.
vestment purposes must depend chief
| ly upon the credit balance in bank,
rather than the cash III circulation,
which always becomes abundant
when trade is dull and prices low, It
is quite safe to say that few individ-
uals have as large surplus in bank
today as a year ago Here and there
an accumulation may be found, owing
to general stagnation and lack of
confidence; but 1t is difficult to see
where buyers are to come from who
Will absorb so large an amount of
new securities unless Europe comes
to our assistance While this is
question of the more distant future
self when the time arrives, it is one
that should be kept in mind; even if
it fortunately should fail to have
any effect upon current movements.
1t is easy to appreciate. therefore,
that one of the principal motives of
our leading fnaneiers In their pres
ent support of the market is TO
create conditions as favorable as pos
sible to the placing of these forth
coming issues.
Complaints On Shrinkage.
The business sitaution continues
very unsatisfactory On every side
complaints are heard of the shrink
age in volume of trade. and facts are
multiplying which prove the cause
for complaint. 1t is all very we'll and
even very proper to cultivate cheer
full spirit in the face of adversely.
Certainly that will be vastly more
helpful than lingering weakly upon
the discouraging side of affairs. But
facts canot be ignored; business is
exceedingly dull, and anywhere from
20 to 80 per cent less than year ago.
Buyers cannot be induced to pur-
chase merchandise, because they find
consumption shrinking and prices
falling. Under such circumstances
they feel they are certainly nit justi-
fed in carrying any larger stocks
than absolutely necessary. When
prices come down to a more tempt
ing level: when it is demonstrated.
that production is being curtailed
much more than consumption, and
when demand begins to revive and
confidence RECEIVERS, then we mayI
find solid reason, and not mere
imagination on which to fix renewed
faith in the future If our good
friends of the Prosperity league will
give the unemployed a job, and prove
to buyers own satisfaction that bot
tom has been REACHED, and that
henceforth demand will improve they
will do vastly more toward bringing
about recuperation than all the sun
shine" talk imaginable.
Business System Fiuctuatng.
vi tOhi lilt Iitilul dtllLuuC IN
business, or what has always been
styled confidence" Is an important
factor in business; and without ii
progress is impossible. But, after ALL
prosperity will only return as the
fruit of hard work, good sense and
patience until conditions have worked
out their own cure. You cannot hyp-
notize prosperity. nor bring it about
by a process of mental healing" 1t
must be recognized that our business
system is a fiuctuating enc; that pro-
gress goes in waves: that prosperity
is always followed by adversely; that
contraction follows expansion. and
that high prices must be succeeded by
low prices Such is history for ages,
and such is the economic course of
business affairs Surgery and medi-
cine are just as necessary in the
| economic world as in the physical
We have already endured some
rather severe surgical operations, and
have taken some very bitter medicine
during the last few months: all of
which. i'm due time. will work out
beneficial results. The worst has
been passed, and better times are