The Cairo bulletin., 1906-04-16
NO GREAT REFORM
Until the Nation Comes Face to Face
With Serious Financial Cri-
sis, Says Cews.
Special by Mail.

New York. April 15.-On Wednes-
day the announcement was made that
over $6,O00000 Of gold had been en-,
gagged In London for this market, the
result being an immediate drop in
prOvement in security values. This de-
yslOpment in connection with he fact
that funds will soon be returning
from the interior more freely impaired
La more confident feeling regarding
monetary prospects. The latter out
look, however is stll one requiring
close attention In spite Of the large
increase in our currency supply we
have been turning floating capital into
fixed forms 100 rapidly The nations
hausted Large sums are locked up in
speculation, particularly in real es-
tate; and legitimate demands continue
very heavy owing 10 the immense
volume Of business and the high
prices of commodities OF course, only
a small portion of the business of the
country i. done through an actual
transfer Of probably not more
than 10 per cent-the balance OF the
nations transactions being effected
through a mere transfer Of credits by
checks. Nevertheless, our currency
supplies have been pretty thoroughly
exhausted. and bank reserves are al q
remarkably low ebh There are three
ways of replenishing the latter First
by the return movement from the in
terror; second by gold import- and
third. by liquidation The latter is the
most mweleomc and yct the ineyi,-
able it The other Two ways fail TN
fortunately, recent stringency arising
from perfectly natural causes was
aggravated by the incasiicity of our
currency system, 50 efforts again APP
pear to be under way directing the
attention Of congress To the careless
neglect which thi. problem has re-
ceiyed for many years past, In all
probability We shall gel no serious
reform until The nation comes face 10
face with a serious financial crisis.
Our neighbor. Canada, which in many
respects T., working under similar con
ditiUnS as ourselves, makes no com
plant of monetary stringency, for
Canada possesses a model banking
system and an elastic currency; con
seQuently her business men go on
their prosperous way unfettered by
monetary cons dcrations, while we
blunder along refusing to learn except
by bitter experience. Apparently the|
has been passed, and easier conditions
may now he anticipated until the de-
mands of the next harvest begin to
make themselves felt. How much fur
Their relief We may be able 10 secure
from Europe is somewhat plOblemati-
cal, The European money markets
would no doubt he willing to expand
Their American credits. or to let MS
have reasonable supply of gold; but
the settlement of the Moroccan prob
lem, having removed all probabilities
of International friction. at once re-
suited In unusual demands upon for
cien banking resources which We're |
fully expected. The new Russian loan
is now anticipated al the end OF the |
present month, and it /, umored that |
an amount of between $310000.000 |
and $i00.00o000 will be placed ON the |
market al about : with . per cent |
rate of interest. These terms indicate !
great need on the part of Russia, but |
they are inviting enough lo attract q |
large Offering. Germany has already |
placed a $4,000 000 loan. while i'm |
portant new issues are also antici- |
pated In London. II Il be remembered |
that business on the continent and in
Great Britain Is more active than
usual aud thar a large amount of
other new security i=-ucs are expected |
30 will seem that The demands upon
the foreign money markets for the
balance of The year are sure Io be
heavy, and must therefore interfere
win ihe freedom Of gold shipments
.o thc United States.
Apart from the monetary situation
the home outlook Is Satisfactory. No /
interruption mas yet occurred in The
large volume of huSiness in progrc... |
and none is in sight. The great coal !
strike. which has seriously threatened |
disaster it is hoped will be adjusted |
before very long In consequence |
various industries dependent thereon |
have taken q fresh start Numerous |
orders for iron and steel. held back |
on account Of the coal strike. nave
been placed: and that important in
dustry is once more enjoying The high |
.ide of activity The March output Of
pig iron was record breaker. and I
/. now rnnninr ~ Tho rate |