The Cairo bulletin., 1910-05-02
Special.
New York, April 30, 1919.

| New York, April 80, 1919
| A feeling of excessive pessimi m
| has come over Wall street. For the
time being at least, favorable condi'
| tons are ignored, and the financial
public appears to be dwelling upon
| influences of more or less unfavof
able character Chief among these Is
| the investment situation. This can
not be called satisfactory. During the
| first three months of the year about
$G00,000,000 of new securities have
been authorized, a very considerable
portion of which consist of bonds
The demond for the latter, as is well
known. has fallen flat, the reason be-
ing that investors insist upon having
better returns than the majority Of
bonds afford 1t should be remember
ed that a very large class OF invest
ors who are dependent upon fixed II
comes hayebeen put to positive hard
ships by the high cost of living. This
class have frequently been obliged to
discard bonds and buy the better
class of dividand-paying stocks, es-
pecially as many Of the latter have
been increasing their, returns 10
stockholders This insistence on the
part sof tie investor for d better re-
turn is an important factor in the
present situation.
Further Complication.
Conditions are further complicated
by evidence that the buying power Of
the investing public has been at Least
temporarily exhausted; either by the
excessive issue of new securities or
by reduction in savings. Time Is re-
Quired for correction of such a sit
uation as this. It is known also that
further large ecurity issues are inn
in the form of lower prices or higher
rates of interest or privileges Of some
sort will have to be made to secure q
market The knowledge of this con-
tingency also effects security markets
adversely. Dividend increases have
apparently become les. popular, and
seem to be a signal for selling and
lower pprices as witness New York
Central, United States Steel and
other stocks which declined stead
ily after dividend Increases, and have
tecu criticised in some quarters
.Sicce.
Monetary Situation,
The monetary situation eycites
some concern, more perhaps than
necessary New York bank reYrves
are low consequently preparations
for May Endorsements, the renewal
of gold exports. a lessened interior
movement, Treasury absorption AMI
cotton financing forced temporary ad-
vance in call and time money. The
possibility Of Europe making still
ply exerted an unfavorable sentimen-
tai effect at time when market opin-
ion was already super sensitive. 1t
had been hoped that the decline in
commodities would stimulate exportIs
and it is believed that Europe vii
readily take our new issues If terms
are made satisfactory But the fact
that London is holding off for better
terms inevitably affects this market
adversely. As to the future of the
local money market. there is no cause
for concern. Funds have been 70
turning from the west with more free
dom, and this movement will shortly
be renewed. 1t is true the west has
made large advances to land and
other speculative schemes upon
which It would he impossible to rcal-
ize quickly; but the best advices
from western bankers are that this
movement has not run to such a
dangerous point as is sometimes be.
lieved There is every reason to be
leve that the western banks arc
able TO take care of the
situation. An undercurrent OF uu,
easincss Is developing regarding tha
political situation. 1t is quite certain
that we are in for period of fresh
tariff agitation during the coming