The Cairo bulletin., 1910-12-19
Special
New York, Dec. II.

Approach Of the holidays naturally
has a quieting effect upon business.
The financial outlook, however.
though not entirely free OF shadows,
has It's encouraging features. Chief
OF these IL the ease In money. What
with contraction of credit, retrench-
ment in expenditures. dizziness of
trade and lessenea speculative activ-
lily, the supply of loanable funds Is
steadily accommodating, and unless
business recovery develops after tine
NEW year, there will be +glut Of idle
|mcDey. This, however, Is the usual
|swing of affairs following any period
of extraordinary activity. It In also
one Of the most natural and efficient
cures Tor business depression. As
long as general conditions remain
southland there is no reason TO con-
slider then. otherwise-inoney will
gradually come back into circulation,
flowing through the arteries OF COM
|merce and performing its useful and
beneficent function in restoring bust
ness activity. Low rates Of interest
indicate insufficient employment for
money. Funds, however, will not
long remain idle on low returns. If
mot required in actual business mo-
|ney will soon seek investment in nigh
grade securities. As the latter were
this first to feel the depressing effects
Of nigh interest rates, they will also
be the first to feel the stimulus Of
low interest rates Already the bond
mrket ais beginning to show the eff
fects of cheap money. There is a
good investment demand for better
class bonds. which today are selling
down ut a very attractive level. Be-
fore long many OF these issues will!
be bringing much better figures, and
lwii in all probability have been per-
manently retired into strong boxes. A
number of new issues are pending,
AMI the majority Of those recently
offered have been readily absorbed.
Railroads Need Capital.
Our railroads are still much in
need OF new capital for the compile
ton of pending improvements, and
bond issues or short-term notes will
! probably be the most ready means OF
raising required capital. AS to
stocks, there are no indications Of
any important new issues. Many
tae high-gIade issues are selling upon
a per cert basis, and these, too, are
likely to receive more serious at en-
ton from investors, December and
January are always periods Of heavy
disbursements on dividends and in
terest account, aggregating this year,
liz is estimated, over $20D,000,000. A
goodly portion of this sun generally
finds its way to Wall street-sfor In
| vestfent purposes, and in view Of the
greater inducements than usual, there
should be no falling off In the de-
mand from this quarter This Is the
basis OF the so-called January rise
| which occasionally mateHalizes in
December. We have already had a
stronger market for several days,
which has probably been the con-
mcncement of discounting this move
ment. What the effect of these cor
ditions will be upon speculation re-
mains to he seen. Easy money usu-
ally stimulates speculative activity,
but leading bankers are known to be
still in very conservative frame oil
mind, and disposed to restrain undlie
speculative operations. The policy OF
slow and forced liquidation which mas
been carried out for the last six
months, has been undoubtedly bene