The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-08-31

itlDaNCc. lnClutntdlly lneN pfOVet
the hazardous position of the shOrt
side Of the market. There are com
paratively few stocks for sale; partly
because investors and the public rec
Iognize that recuperation is the ordel
Of the day, and partly because the big
operators are opposing any important
Reaction at this time. AS long as i'm
proyement in industrial and mercan
title affairs continues it will be diff
cut to check the present hopeful TEN
per which prevails in financial circles
Wall street always looks far ahead
and Is now actively disseminating all
the Improvement that is likely to take
place before next January, 1t may be
Notwithstanding that probability; but
if so, it is only miying in accordance
with precedent,
BY far the most important element
in the stock market Just now is the
worldwide ease in money. This ease
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
ent gIutted condition of the money
market is chiefly attributable to the
accumulation of funds which always
follow panic, regardless of the pro
ducton of gold Business activity has
been at a minimum, and funds came
out OF boarding as confidence revived.
These two movements caused piling
up Of idle funds in the banks which
now hold extraordinary reserves in
spite of the fact that the crop move
ment has begun, and that usually cur
rency is flowing freely to the west and
count for the record breaking accumu
alton of gold in the American and Eu-
'opean banks more than the enormous
Of the Rand district
What is the effect of such an aceum.
ilation fidle funds? The owners
INST inevitably seek better employ
nent than afforded by current low
'ates on call and time money. Since
orGdence, though rising, is not fully
restored and caution is necessary in
making investments credits expands
,lowly. Only the best borrowers and
1o best proposals are welcome at the
IA T. nj orimirG'ion is still neces
ary: III result being that large hold
re + iale money arc obliged to invest !
p to b ttsr class of securities. Mon
~ can be much more profitably EN-
loved in these lines than in ordinary |
ending; good investments thus be !
ONE scarce and the big SPECTATOR |
With an abundance of sheap money at |
lis command is afforded an unusual !
This explains the pres |
mt stubhomness Of the market 10 |
'iold to artificial pressure, also the
trong undertone shown in the face of |!
news. Cheap money is |
lot only a powerful but under the cir /
it is the most natural slim /
liant to business that could be ex-
ected. With the prospect of low |
atcs of interest for several months |
o come there is little chance for any |
reaction in either financial |
r mercantile circles, certainly not I'M
il money rates advance or reaction - |
reduced from causccs not yet appar /
mt
The course of foreign exchange will |
e watched with unusual interest this
uumn. Lately there has been a bet
or supply of cotton and grin bills. Eu
ope being a large buyer OF corn aud
heat Trade conditions favor small /
IMPORTS and libertI exports, or a large
KEGS of the latter i'm our favor; there
ore il is a matter Of interesting con
scturC as to how Europe will settle
ef Indebtedness TO us. II is probable
hat our obligations abroad. which
'cre so heavy in 1907, have been
lreely settled, and it is unlikely that
W will permit our credit abroad to /
lie mp to any extent when interest /
atos there are as low II not lower /
han here. Moreover. Europe is not |
Inclined to send back American secur /
lies when il is recognized that we are |
N the upgrade. There seems to he no
formative then. but for us to take |
old ir payment for our products. lit |
L. a. We are in need of the precious /
METAL In fact. il would be beneficial |
f we could return the balance oil
ur tatings of last year. and If these |
re to remain and be augmented the I
fect cannot be otherfise than stimu /
atinr to the American markets
Toward the close Of the week hui /
ish tendencise again asserted them /
elves The failure OF bearish opera |
ions and the forced covering Of shorts /
.acfed bv the ease Of money and the /
Use C confidence referred to above |
ave a fresh impetus to the upward /
movement. aud induced renewed buy /
ne OF stock Support came from the 4
aue quarters which have been on the I
ouz zife OF the marset for weeks I
.ast and there were no particular ~
eucee ~ important inside selling. not /
the probability that the /
aqFerz have plenty of stocks To sell /
"a tho rise Now that opposition 10 1
o. a1vauce has been practically eN i
.arsfed. IL remains 10 be seen what &