The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-01-16

l.
THE INDUSTRIAL sITuATlo
Special
New York, Jan. 12.-The stock mar
ket is working between TWO conflict
ing conditions; viz: a strong techni-
cal situation, but somewhat unset
tied outlook as to natural conditions
The strength OF the situation lies in
the fact that securities are in strong
hands, that weak accounts have bee1
eliminatd, that speculation is within
very moderate proportions, thai
prices OF stocks and bonds are CON
siderably below the high level and
that they yield much better returns to
the investor than formerly. Another
important factor in the stock market
is the expected ease OF money Tor
some time to come, arising from the
return of funds from the interior and
from lessened demand for business
purposes. 1t must also be taken into
consideration that the big banking in
terests OF the country are enlisted on
the side OF higher prices. Their fune
ton is to finance the great transport
tation and industrial organizations OF
the country; and ii so happens that
our railroads are in pressing need
OF large supplies Of new capital This
means that many millions OF new So
curities will have to be placed during
the current year; hence one of the
strongest reasons. for keeping the
stock market in condition ready for
the absorption of these forthcoming
issues,
Bank Situation
Such are some OF the facts whica
explain the present resistance Of the
market TO unsettling influences. On
the other side OF the account there is
an unsatisfactory bank situation in
certain portions OF the country, re-
sulting from the enormous expansion
of loans and the atter-s continued
excess over deposits. II should be
said that there is some improvement
in the matter of loans owing to the
recent conservative attitude of west
ern bankers; but there is still cor
siderable strain in certain portions OF
the interior, arising from excessive
land speculation, irEiga ION schemes
and the Increased boro' ings Of air.
meis for buying cattle and carrying
crops. The western situation as a
whole is unQuestionably improving.
albeit there are stlll points of weak
ness which will probably have to be
eliminated The local bank failures,
being confined to weak and unimport-
ant concerns, were without particular
significance and had little effect upon
the New York market
The Trust Cases
The most serious interference with
activity on the Stock Exchange Is the
uncertainty attending the Oil and To
bacco cases and the railroad rae
question. No general resumption or
activity can be expected until these
important problems have been finally
adjusted If the decisions prove un-
favorable the market may not show
any serious reaction, for IN each Gaze
the parties concerned are undoubted
ly prepared to adjust themselves as
far as possible to the worst. In any
event it is recognized that the produc-
ton Of tobacco will go on practically
as before; changes in organization
not being likely to cause any cessa-
ton CT demand or any serious dimuni-
ton of profits. There is moreover
some belief that the railroads will Sc
cure moderate CONCESSIONS in CERTAIN
Instances No doubt the railroads are
making their case as strong as pes
sible for they have entered a period
Of business reaction, facing heavy IN
nreases in operating expenses, and inn
perative demands for increased facili-
ties. The rate question is compli
Gated one, because in some sections
Of the country. rates are unquestioa
| ably low and some roads are much
better able to keep up under existing
conditions than others. The load
comes heaviest upon such companies
as are still laboring under the exces-
sive fixed charges imposed by the un
| scrupulous financing o. previous gen
erations. Dealing justice to the rail
| roads Is problem that calls for tbs
highest order of talent; and it should
not be forgotten thar II $100,000.00t
or more are to be taken from ship
| pers to compensate railroads it is still
! a proper question for the government
| to ask, what will be the effect Of sucs
Ian increase upon shippers and con
sumers, who finally pay the bills.
Investments.
! The investment demand for stocks
has thus far been moderate and con
! fined chiefly to Individual buyers