The Cairo bulletin., 1908-12-28

New York, Dec. "a, 90S.--Firmel
cali money, declining bank reserves
contraction in loans and resumption
of gold exports naturally caused re
action in the stock market Added 10
this was the quieting effect of APP
preaching holidays The money mar
ket is again the dominating factor
and any further intensticaton of
the above conditions would of course
act adversely on stocks. Time money
is plentiful at 81 "a per cent, and
seems likely to so continue for some
time ahead Mercantile require
mcnts should increase as trade i'm.
proves, and large demands upon the
money market seem probable from
new security issues, but the future
Of time money for the next six
months is generally regarded with
complacency. In call money TEN
porary stringency is not impossible
as high rates often occur during the
closing week of the year previous to
January disbursements. BY the mid
die of next month, however, call
money should be normal once more.
The big shrinkage in bank reserves,
due largely to government with.
drawals, inspires precautionary
feeling, especially as we should be
facing deficit in reserves had not
loans undergone a sharp contraction
of over $39,000000 in the last two
weeks. Our surplus reserve has
receded fully $50,000,000 during the
last three of four months; so thar
there has been a heavy controction
Of lending ability on part of the
banks, which must have materially
restrained speculative activities, and
declines. There is still a noticeable
and commendable spirit of con-
seryatism among bankers. when
while not discouraging healthy speca.
ation turns a deaf ear to all ques-
tionable enterprises and "get,rich.
quick schemes 1t is many years
since banking was conducted on such
sound and conservative lines as at
and the results will unques-
.ionably be beneficial.
Gold exports were not important !
tut they invite attention to two facts I
irst the continued extraordinary ac,
CT gold by the Bank OF
trance, and, second, the unsatisrac
or state Of our foreign trade. Our
'XpCrts Of merchandise in November
we're only $1Gl 100000, a decrease OF
t@00o000 compared with last year.
While our imports fell to s1O4 600 OGc,
If $hd00,000 less than last year Both
Exports and imports were the small.
st in any November for several
ears, rejecting not only dullness al
lCme, but also abroad. The excess
II merchandise exports for the
month was only $57Oo0,000, which
vas much less than usual and which
n connection with the selling OIL
american securities would suggest
uther gold shipments were it not
or January remittances and fairly
beral takings Of our new bond is
uos. In eleven months of the fiscal
ear our exports have fallen S152-
10000. while our imports showed
he tremendous shrinkage of 1926
Oo 600 leaving an excess of expor,s
DR. that period of 1853 000O 00, com.
AIRED with $685., 100000 a year ago.
uch We're the effects Of the manic
pom our foreign trade. Our sales
broad were curtailed much less
nan our purchases. a tendency when
course served to strengthen our
financially
A good demand for bonds is one
the most satisfactory features. In
astors seem inclined 10 discriminate
gGinst stocks. because of their bign
vel and because there are numer.I
D. good bonds to be had at about
per cent level. Stocks have had
fair decline since the rise follow.
g the election. but not sufficient 10
mpt the conservative investor who
more anxious to keep his capital
tact than to secure large dividend
turns. This cautiousness on thel
IT OF the investor is conspicuous
ld is one Of the after effects of the
mic. There is plenty Of capitsI
good investments. but no
ier-confidence in seeking its en-
oyment January disbursements
e estimated at about $3.50. 400 0oa
practically the same as last wear. /
)mc decline was shown I'm dividends1 |
be disbursed. but this as Offset 7
increased interest payments. due
liehy TO new bonl issues by the
ilroads. The railroad situation Is I
-adually improving Earnings are |
70 make favorable com !
PRISONS with the panic period OF :
st year, and in spite Of idle cars
any Of which no doubt should be I'm
10 s pcraheap the volume Of traffic 5
almost co to that % 1870. sol I
ith better rates anil economical .
leratiCn the railroad outlook for ,
.0s b. cutie satisfactory. This fact :
BE- 10 doubt much n 10 with the
nfdence which the market leaders,
lh display concerning their sreriaI /,
7-- Traders have REGARDED the re- q
or decline with some satisfaction 1.
% tends 90 encourage ACTIVITY "a
b. technical situation has uuqulz 4.
nably been improved By recent 2e.|