The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1908-08-31
PLENTY OF EASY
MONEY In SIGHT
Seeking Investment in First
Class Securities.
National Condition Only Holds Check
ON Use of the Idle Cash IN
Bank.
SOME BULLisH TENDENCIES

New York, Aug. 3i.-lAst weeks
excessive plunging operations fortu-
nately created only temporary dis
turbance Incidentally they proved
the hazardous position of the short
side of the market. There are COM
paratively few stocks for sale; partly
because investors and the public
recognize that rocuperation is the
order OF the day. and partly because
the big operators are opposing any
important reaction at this time. As
long as improvement in Industrial and
mercantile affairs continues II viii be
dificu.t to check the present hopeful
temper which prevails In hnancial
circles Wall street always .ooks far
ahead. and is now actively discount
ing all the Improvement that Is likely
to take place before next January.
II may be oyerdisoounting that prob
ability; but II so. II is only moving In
accordance With precedent
~ far the most important cement
In the stock market just now is the
worldwide ease In money. This care
Is not so much a consequence OF IN
crease In the gold supply as some
would have Us believe, although that
factor cannot be ignored. The pres
,nt g.utted condition OF the money
market Is chiefly attributable to the
accumulation ~ funds which always
follows panic. regardless of the pro-
duction OF god. Business activity
has been at a minimum. and funds
came ont Of boarding as confidence
revived Thole two movements caused
a piling up OF id'e funds In the
banks. which now hold extraord nary
reserves In spite OF the fact that the
crop movement has begun. and that
usually currency is flowing freely u
the vest and south at this season.
They also account for the record
breaking accumulation Of gold In the
American and European hanks more
than the enormous production of the
Rand district
4 stimulus.
What Is the eject OF such an ac-
emulation Of ld'c funds? The own
ers must Inevitably seek better en-
ploy ment than afforded by current
low rates on cal and time money.
Since confidence though rising. Is not
fully restored and caution Is ncces-
sary IN making investments. credit
expands slowly. On,y the best bor-
rowers and the best proposals are
welcome at the bank Discrimina-
ton Is etill necessary; the result
being that large holders OF id,e
money are obliged 10 invest in the
better class OF securities Money can
DE much more prohtably employed
IN these lines than in ordinary lend
Ing: good investments thus become
scaroe. and the big Spectator with
an abundance OF cheap money at his
command is afforded an unusual op-
poFtunity This explains the present
stuObornness of the market to yield
10 artificial pressure. a,sO the strong
undertone shown In the face OF I'M
favorable news. Cheap money Is not
only a powerful but under the cir
cumstancos Il Is the most natural
stimulant TO business that could be
expected. With the prospect Of iow
rates OF interest for several months
TO come there Is little chance for any
important reaction in either financial
or mercantile circles. certainly not
until money rates advance or reaction
is produced from causes not yet APP
parent
The course OF foreign exchange
VIII be watched with unusual In
terest this autumn. Lately the has
been better supply OF cotton and
grain bills Europe being large
buyer of cotton aud wheat. Trade