The Cairo bulletin., 1910-01-31

, mands upon the money market, France
is financially strong and optimistic so
| that disaster Of this sort win only
exert a passing effect London is be.
coming more hopeful and further
Production in the bank rate is not i'm.
probable. Europe is just now excer.
i tionally free of international friction
The sitaGtion abroad, therefore. IA
generally satisfactory from the iinan
cial point OF view.
Confusion at Home.
At home the situation is somewhat
confused by temporary drawbacks
The agitation against the present high
cost OF living, which has spread like
wildfre from the Atlantic TO the Pa
cifc, has an important significance,
inasmuch as the dicontent which it
implies unless checked may easily he
the occasion for great deal of rad
zeal and injurious legislation. Already
Investigations are being initiated that
will furnish fresh material for the
agitator, and Unless some means are
found to satisfy this discomfort is may
easily become a much more disturbing
factor than has yet appeared II an
political animus, 1t may accomplish
much good by provoking discus sion
and showing what are the real rea,
sons for present high prices. As al
ready stated in these adyice8, high
prices are due to many and very com
pick causes, and little relief can lie
expected from legislation. 1t ia large
ly an economic movement. and one
that with time and patience will wor@
out its own solution far better than
through any legislative meddling.
Investors Attracted.
While. there are reasons for unsettle
ment as noted above, the fact should
not be forgotten that the better class
of stocks have now reached a point
tenton Of investors. With decline
of 10 to so points in many of the best
issues, ii is evident that their invest.
ment qualities are much better than
three months ago. Stoc.s are now
being quietly picked up by shrewd
buyers for permanent holding. and
should the decline go much further It
will be found that the floating supply
of securities has been materially di-
minished. Stocks have gone from
weak into stronger hands in consid
cradle volume. ami the possibility o.
the bears meeting with further sue.
cess on the decline is constantly dr.
minishing. Fundamentally, conditions
are sound, and the prospects are that
before midsummer tine market will
reach considerably higher level than
the present one. While the present
tone of uneasiness continue s it is no,
impossible that still lower prices may
be reached, but the better class of
stocks can be considered as pur.
chase upon all pronounced breaks for
the market is near bedrock figures
and any important decline is sure to
bring ont strong buying.
Bond Situation
The bond situation is not satisfac
tory owing to lack OF buyers. but this
may be partly due to the fact that at
present leyey stocks are more attrac
tive. A number of new issues ara
still he'd back awaiting more favor
able financial conditions. and nothing
Is likely to assist more in this resect
than the recent severe decline. Secre
tary MacVeaghs bond tax proposal is
not likely to command general ap.
proyal. 1t is at best an expedient and
not a cure. Short term obligations
Until currency reform is possible and
no harm will follow the government
paving better rates for money just az
other borrowers have been obliged to
do.
HENRY CLEINS.