The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1909-01-18


of uncertainty and weakness has
! lust closed The usual January rise
| failed to materialize and those who
have been resisting natural tenden-
eios in the hope Of unloading surplus
| stocks have just met with their first
resiOus disappointment. There is NO
| doubt tbut that the gas decision
marked the turning point Of the mar
ket That proved a blow to the bull
interests from which theyh ave been
unable to recover; since compulsory
liquidation followed to an unexpected
degree and weak spots were dis
closed where least expected. The un-
dertone in consqr ence has undergone
a complete change, and for the first
time in many weeks. if not months,
there has been cessation of bullish
talk the prevalent gossip now being
of a bearish character
Causes of CHANCE.
This change in tone of the market
will be no surprise to readers of
these advices 1t has been persistent
ly shown that the advance in stocks
had been excessive and out Of all
proportion to the improvement in |
general business. II has been ar
gred with equal consistency that
prices must return to a more normal |
level in order to conform to outside |
The last hope of the bull |
leaders was that the January invest |
ors would come in and innocently re
ieve them of their excessive burden |
This they wisely refused to do then
eame, as already stated, the gas de
,ision, which proved the final and de
eisive turning point
Another unfavorable feature ha'
pcen the excessive output Of new
bond issues. far outrupning all pos
'iblc investment requirements at this
inc II is estimated that fully $40
100000 new issues have been offered
ince the end of 1908 and consider
ble sums are still pending. Our rail
Dads have by no means satisfied
heir most urgent needs and the pros
)e greatly increased if It proves
necessary to construct a tide level
anal, as now seems probable. More
.rer. the government is still running
icaviir behind which necessitatas a
iii. 1raWal OF its funds from public
81 catp,ies; While the demands for
luliciual purposes in all parts of the
G rJr} are rapidly increasing Cold
81 Orts have begun en- a liberal scale. /
bout S10Jlp00 having already gone, I
nj it is expected that the current I
lovement will at least reach S25.0o1,-
90 if not more. On February / $40 r
lo,0c0 viii be required for trust com /
anv reserves. /
Monetary Resources Ample. t
Owing, however, to the inactive
of business our monetary :
'a"urces are easily sufficient to meet / g
Il probable demands. especially as \
,e banks hold an ample surplus re- =
eve AMI the influx from the interior
'omisee to continue for some time to Il
lme. Gold shipments thus far have 4
2nc almost entirely to Paris. whose n
inkcrs have been making strenuous q
forts To pile Up the precious metal n
that point London also seems
lNiou~ To- strengthen fits gold supply.
hich probably explains the advance E
the bank rate TO per cent Mex 1
eek a portion of the long expected
usian lean VIII probably be an.
)nmced. II is not likely that this a
'cratiou viii cause any arrangement i
he foreign market. French bankers
ing noted Tor their skill in carrying
rough such negotiations without S
siurbInc". n may. however check
@ Partisan demand for gold which
b. been practically Unsuitable for !
uths past At any rate e. is
ticcablo that London las been un-I
sy over French manipulations. and O
viii boz interesting 10 watch the
icomo oi the efforts Of the Bank
England to secure gold IN the open n
arFet Fortunately We are well
ppliei iH this respect and can view
o. perfect equanimity the UroIalc II
s. OF s2s.00on0o or more to Europe.
j. always ior the benefit Of an con.
med thar gold should flow to where y
IT, most needed The mediate out
'k for orr own money market is as
ring because Of the facts just noted o.
Z as We approach the 1st Of AurIlv
hardening tendency may De- cN- lri
'te'I During the interval monryI
1uld bo plentiful az moderate rates
a'l good borrower. though bankers
sely continue to exercise a greatl Isl.
AT of discrimination a. to borrow.
collateral and the enterurises
King their support
Suspicious Railroad Schemes. af
The outlook for stocks Is not set!
-T Gathering; not merely because oil C.
decided change iu sentiment. but
+" because prices are etHI tro Ffgh an
attract the investor who g. ereal
inclined fo buv stocks now tran rs
'rr trg decline BEGAN or eOur-. ii.
fries EaH there riu Dr. moro III rf
b ing tn cover tte short inter Sd.
rIith is Increasing auf b urul -.
erii --pHrL This viii keen ticIs-.
iEff .l = state 60 healthy fHv -
ar u Eel.