The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-07-17

likely to reach high.water mark
and with wheat well above the aver
age, IL is certainly too early to take
a pessimistic view either OF the VOL.
ume OF the crops or the prospects
for improved trade and industry
that win follow continued agricul-
tural prosperity
Aside from the Disappointing
character Of the agricultural re-
port, operators have been Influenced
somewhat by sudden decline in
New York bank reserves This de-
cline is probably temporary and Is
unquestionably connected. either III.
rectly or indirectly, with the pay.
ments for the Panama bonds and
also with the large somi-annual
dividend and interest disbursements.
Money will undoubtedly return &c
the banks as soon as the July divi-
dend and interest payments in due
course regain circulation The srd
den decrease in reserves, however
is certainly OF a cautionary charac
ter, and is suggestive Of what might
nave occurred had the demand roI
money come at period OF activity
on the Stock Exchange or Of even S
normal movement in trade and In
dustry Money rates themselye,
have not been appreciaby affected
which indicates the thorough grasI
that our banking institutions hay,
on the general banking situation 1t
is desirable to bear in mind that th,
bank reserves that have been sc
spectacularly drawn upon do not BY
any means represent our market
full monetary strength Europe IS
greatly indebted to us as the result
of the sales of American securities
abroad and the large excess Of oul
exports of products and merchan
dse over our imports Should there
be any substantial advance in in
terest, rates it would naturally re
suit in the importation OF gold OF
an important scale If the plan
however has been to finance the
half-yearly payments without resort
ug to imports of the precious meta
in order that the money market
may not become unduly congesioc
by too abundant supplies as soon a
the present strain is removed tn,
next pont to watch is, Of course
the financing OF the crops But
seems fair to assume that if the Iul,
could be finances
without drawing on our foreign bal
ances, then the crop demand viii
be financed in a simila
manner There is no present indi
cation Of a sudden advance in trade
activity sufficient to become con
trolling factor in the immediate
money situation Trade undoubted
" is improving, but the movement il
gradual, and it is not likely to as.
sumo full proportions until tn
years crop requirements have boeI
fully met and the funds released
Money conditions, therefore, are
not apt to encourage LIQUIDATION o
securities for the sole purpose Of So
curing funds for mercantile and in
lustrial purposes
The week has not been without IT,
favorable features There has il
the first place been a distinct i'm
Droyement in specifications and con
tracts that have caused a better
dealing in the steel trade. The
monthly report by the United States
Steel Corporation indicated an in
crease in untitled tonnage during
June of 247S71 tons, while III,
ilOilNlIAS us hl 20 VI VIC NlpFFNi I "
ducers. Association reflected a re
duction of S,501,72S pounds in the
stocks of that metal in this country
An improvement of 16 per cent Is
3hown in building activity in New
York during June as represented by
the permits issued officially for new
and repairs The de-
claration of the usual semi-annuai
dividend by the Baltimore & Ohio
after some delay, removes a source
Of some recent uncertainty,
While the immediate outlook,
suggests caution in the
selection of securities, the long
range view is not discouraging for
investors.