The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-07-03

therefore, stimulate the demand for
corn as feed But the harvest out
look, considered as a whole, certainly
suggests another link in the long, TN,
broken chain OF years Of agricultural
prosperity, This means, in turn, a
tremendous purchasing power for the
products OF industry which cannot
fail 10 show itself in general mercan-
sila activity when the improved move
nent onae really begins, Stocks Of
merchandise in course of distlibu-
tion ana in the hands OF manufactlw
ars are unusually light and must be
promptly replaced The demand from
consumers has during the last few
months been restricted to day-to-day
requirements and mas been supplied
OFT of stocks in process Of distribu-
lion, both retail and wholesale mer.
chants in their own purchases from
first hands merely rejecting the
United demands for actual consumr-
ion. Thus our manufacturers VII
be lace to face In short time not
only with supplying the accumulated
lemand of consumers, but also with
supplying in the ordinary channels
If distribution products TO bring sun
lies in these channels up to normal
distributing proportions,
An evidence of the continued abun
lance of money--a feature that has
,een the primary cause OF the steady
advance that has taken place in the
market evel--ls the fact that &C
J camulations Of und to pay the large
! aamLannual dividends and interest
| disbursements have been made this
year with an appreciable harden
ing in rental rates for money. The
July disbursements at New York are
estimated at about $235,000,90O, some
important part of which will unques-
tionably seek reinyestment in the
stock market. But beyond this the
ability Of the banks to finance these
large transactions without strain fur
nshes good ground for belief that the
crop requirements this year Will also
I've quite as readily financed Trade
and industry are both gradually inn
proving Their Improvement, how
ever, viii not be so sudden as to
cause congestion in banking circles
Turing the crop-moving season. Ac-
3ordng to the present outlook, their
demands for working capital will not
assume sufficient volume to cause
| LIQUIDATION of securities that have
,een accumulated by the banks In or
Ter 10 release funds. It's very prob
able that the crops will have been
.ully nanced before mercantile de
hands in their turn reach even nor
nal proportions. And should this
easoning not prove entirely accurate
, We still have large balances availa
bic abroad ready to show themselves
| the form Of gold imports as soor
IS money rates justly the. movement
| 4 the previous metal from Londor
this center. New York banks an(
| rust companies today are holding sc
| urities exceeding their holdings of {
ear ago by $10S,5G3,00O There is nj
| Incentive for these institutions Il
iquidate these holdings, for the,
could not utilize the proceeds to bet
Ter advantage. The steel trade is i'm
proving, the industry now operating
At about 70 per cent of capacity
which is an increase of % per cen
rom last January In the dry good
| rade there is also evidence OF reaC
ION from the recent depression.
As already noted, the prospect
continued favorable for rapid and wild
iueDn0tions. These will be base
more Immediately upon crop report
| (since we have fully arrived at th
period when crops are the chief dal
o.day influence), but they will ais
Ne based upon the probable continl
'nce Of Governmental antagonisn {
combinations and on other develoI
ments at Washington including tart
egislation which has recently show
; -isns Of increased uncertainty.
), HENRY CLEWS.