The Cairo bulletin., 1911-01-23

and discouraging to excessive imports
Unde" ordinary conditions such a
movement would invite large gold ita-,
ports.
Investment Conditions.
The position is such, however, that
we have no need of adding TO our
supply of gold, and the excessive ease
of money will naturally tend to dis
courage importations. 1t so happens.
however. that Europe, aud especially
Great Britain, has an ample supply Of
capital to invest. English bankers
and security holders are favorably
disposed to American investments BE-
cause experience shows that no ota-
ers have been more successful in
combining profit and safety. Great
Britain is exceedingly prosperous and
will be obliged to seek investments
abroad in an unusual degree, ana ii
conditions here prove favorable We
may look for liberal influx Of Brit.
ish capital into the United States,
bonds receiving the preference. In
ternational bankers appreciate tae
value of such a situations but intend
ing foreign investors are restrained
by the unreasoning attacks upon CAPT
tai in this country, and are keenly
awaiting the outcome of the supreme
court decisions and the action OF the
interstate commerce commission TO-
wards the railroads. Should foreign
capital become satisfied that Justice
and fair dealing win prevail, tie ti"w
of capital in TINS direction would be
much facilitated. Needless to say that
nothing would aid business recovery
n. ore certainly at this time than a
purpose Of stimulating American en-
terprise and further developing . r
resources.
Stock Market improved.
The Improvement in the stock mar.
kat already anticipated in these adj
vices has made further progress
Transactions have been upon an i.I'
creasine scale AMI at generally al
vancing prices. accompanied by mod
crate reactions. The result has been
an improved trading market. Condi-
tions are still OF 4 favorable charaH,
ter. The most important element in
favor of higher prices is the ease IN
money and prospect of its confirm
anre for some time to come. The
banks are gaining through return III
funds from the interior. In view OF
the continued quietness in business,
the shIinkage in speculation and the
decline in conn odity values money
promises to become gut Another
very important factor is that the 10
mfnatiDg interests in Wall Street arc
in favor of higher prices. Securities
are concentrated In strong hands. ire
floating supply in the Street being
much smaller tnan usual liquidation
has eliminated weak spots, and all
known unfavorable conditions appear
to have been thoroughly discounted.
owerful banking interests in tie
Street are Interested in supporting
the market in order to aid the dist /
button of the various new issues
now seeking investors.
Still Some Hesitation.
1t is true that some hesitation eX
lists owing to uncertainty RESPECTING
the supreme court decisions and tht
action OF the interstate commerce
commission, but the worst to be ey
pected from these sources has alread!
been fully anticipated In all proba
bility the interstate commerce coro
mission will offer a compromise dc
Cisionf In the west where rates are
extremely high, some reductions ma!
be ordered. In the east where rate
are often relatively low 1t woulI nc
J be surprising il some advances We;
permitted in order to compensate lo
the advances recently made to labo
: The immediate outlook is for a NOR
: active AMI better market Condition
favor a moderate advance in secmit
values, but runaway market I
neither probable nor desirable. Shonl
: Europe, as is hoped prove goo
buger of American bonds and note
{ an important stimulus will be give
} to the general market The only r.
actions at present in sight are sue
s as may be invited by profit taking. A
. current prices there Is no lack of a
Y tractye investments.
5 HENRY CLEWS.