The Cairo bulletin., 1908-12-21

AT emptS TO iii prices 10 a still high
er level and spectacular manipula
ton u low priced specifics fail t,
stimulate public interest. The oil,
theory that the public will climb afte
stocks when they have had big ad
vance no longer works Just why
the public will not come along in III
usual philanthropc fashion and re
lieve the big leaders of their super
fluous stocks, It does not tell: bu:
there is only one inference, and that
is the public knows better, In thes
days the outside operator is a much
core wary individual than ne used to
be. Experience has proved costly
but thorough teacher, and the ind
vidual now depneds much less upon
tips and gossip and more upon his
own judgment and the guidance of his
| broker than formerly He may of
course err at times; but this is q
healthy tendency and one that will in
the long run be more profitable than
blindly following the leadership of
those whe simply desire to- east upon
him their surplus burdens.
Money Market Situation.
This Wariness Of the public, which
is really an important element in the
situation, is not the only reason To-?
present unsteadiness Security prices
are undoubtedly too high when meas,
ured by customary standards. As re
peatedly stated in these adyices
cheap money has been the most pow
erful single influence in the remark.
able recovery of 1908. When cali
money remained fRM2 per cent ami
less, dividend paving stocks appear.
ed particularly cheap. The accuru-
lation of idle money following PAM.
has always been a powerful stimulant
for recovery and this year cheap
money had more lifting power than
in previous panics because Of it's larg
er supply and the fast that the panic
had less serious effects than usuai
IN industrial and mercantile pursuits.
= il be conceded that cheap money
W. the main cause OF the rise, 1t fol
OE5 hat the maintenance of that rise
argely depends upon the continuance
+ cheap money 1t is just here that
he stock market shows its weakest
point All indications suggest SLOW
but sure hardening of money rates
The stiHening which usually accom-
pauies preparations for January @is
bursements is of course only tempbr
airy and should disappear by the mid |
die of next month. But there are 9th |
er and more permanent Influences a
work which mean higher interest
rates. CHIEF among these will be |
the new demands for capital. IN thu |
first eleven months of this year the |
new security issues We're estimated at |
about 81 800 100000, aaginst $1,000. |
100000 the same time last year. OF |
this total two-thirds roughly speak. |
ing. were railroad issues During the |
leNt few months still larger applca |
lions may be expected, because tn,
necessities OF the railroads are fan |
rom satisfied, and il must be remem
Dered that financial opera ions wer,
very seriously deferred by the panic
Large Money Demand Expected
Now that confidence is being restur |
,d, such negotiations will of course b
'esumed This means both materia D
Increase in the supply OF securities
md higher rates of interest, condi-
ions which it is needless 10 point ont
are not favorable 10 stll higher
lriccs The future of the money mar.
,eU however, will be affected by addt.
ional considerations. A larger mer.
antile demand for funds is sure 10
Icyelop next year with the improve
nent iu business. dgd this deman,
must inevitably be met. Again. thu |
eseryes OF he Associated Banks are |
howiue almost sensational declines
nay bee expected 10 continue because
n the absence OF a sufficient supply
# grain and cotton bills we must send
.old 10 fll the deficiency. We canno
Xpect 70 ship securities to any grea
Xtent al these prices. since Europe |
las been selling Americans and blunt
y telling us We are on TOO high
ilaue. Hence. with increasing de
hands for money. disappearing bank |
deserves ami prospective gold ey
,orts fl follows that money ratee
must work gradually higher.
Future Bright.
on the side of higher prices ",
lave the resources ami the abilities
# The strongest leaders the Street |
las ever seen. They still have plenty
# stocks Tor sale. and are scehiuE
clief through bringing iH the public
bout tbr oniF advantage oH their
idle is rhe prosperous outlook for rail
Dads Don 1868 The future iu this re-
poet is undeniably bright al the
pads have puf important economies
nto eject and with The advance Ia
ates already or abuuf to be enforce
hes are sure of liberal gains ia. net
arnmgs whether the volume Of trat
c goes back to 1901 records or not
bis policy Of course insures the
maintenance Of dividends ami is the I
~.srsr.r al s-.r.-a..s-r TT.