The Cairo bulletin., 1906-01-01


spot in the whole situation, Credit
has in many cases been unduly extent
ed and some of our banking instiiu.
q ns are loaning TOO heavily on Qnas-
4 tanahle collateral, Bank loans IN New
York stand al about $1,000, 100000
which is practically double theig
amount ten years AGO The difficulty
lis Wall treet has oYerli.coanted the
| sitiaion ana it would not be surpis-
ms il some degree Of contraction Oh
rcadjustment we're enforced during
1896, the speculative sitsatinn On the
stock exchange being anything but
/ satisfactory
While These are facts which suggest
reaction ana consequent prudence
| there are elements in the situation
which do not yet supper, the theory
| That contraction has begun On The
contrary, there are many good reasons
for anticipating a continuation Of pres,
eut commercial ana industrial activity
| at least until the next harvest In the
| first place II must be remembered that
all reactions or panics have had their
! beginnings in overproduction MOI M
| til there has been an Cverpfoduction
/ Of securities. OF merchandise. OF Of tae
mass Of utilities which 90 to satisfy
human wants is there any reason stft
fear permanent reaction When over
! production becomes general then rea9.
! juslment must also become general.
| bnt whore are the symptoms Of gen
eral oyerproduction? We have uoJ
built too many railroads during the
past decade. nor issued ion many Sc
cHrites Good inye tnents are very
scarce Stock market conditions dem.
lonstrate nat Raiir al manager
know thai our railroads are oyertaxed,
that old sections of The country are
badly In need of enlarged facili les
and THAI new sections are greatly I'M
need Of additional mileage All indi
cations peint to a renewal of railroad
| building. particularly west of the Mis-
sissipp where present facilities afn
inadequate In his decade acre has
been none of the excessive railroa1
I building which procin.tated previous
crises Tie railroads therefore must
be eliminated as an element OF weak
ness when in fact they We're never
in stronger position
II We consider the iron trade, which
i: very properly accepted as our hest
signal barometer, we find That the
country is producing iron product
with marvellous freedom: and yet
there are no signs there OF overnro-
duction. On the contrary the nations
demand IS stil far ahead Of capacity
and the entire product of our mills 81
sold ahead for months ID come The
principal demand for metals has come
from the reconstruction of orr rail
roads aud Of cur cities. rendered i'm.
perative by the growth Of the popula-
tion ANA traffic; also by the progres
of invention and the necessary aa0B
ton Of modern business methods
which have played a highly important
part in car industrial activity These
rcconstructiye demands have been
largely satisfied, but their end is moi
yet in sight and much new work Is
booming ND. How long it will take to
complete this process of industrial re-
equipment II is impossible To say, but
the task when completed will leave
our railroads and industries in a vast-l
ly better condition to face reaction
than hey were before. Now uses Tor
iron are constantly arising: il is
diaplacing wood and slight |
reactions in prices would promptly |
new demand--to say nothing |
of export possibilities which are now |
open as a Safeguard aainst congestion !
q home Our chief Industry therefore
the iron trade-is not only in ex.
cellent condition bat its prospects !
continue assuring The same must
DE aid Of our mineral industries The |
coal trade Is enjoying greater pros
pcrity than al any time during its hi.
tory Even should II be necessary 60
make concessions TO the miners
which Is not profitable business. We
are producing gold and silver freely. |
the copper likewise. though specula-
zion aud manipulation of the latter )
one OF The disturbing and dangerous
features If the day. a break there is
more likely han in afy of our metal
De industries our building trades are
of course prosperous. So. too. are our
textile industries and in none of Ihcse
are there vel any signs OF
otcrpr ducion Demand BIS still ahead
of consumption aud suggests a further
expansion IN production. Labor every
where Is wei employed ANA at good
wages Trades unions through hard
experience. are gradually learning the
lesson Of rcasonableness ami discover
ing that force is frequently more in
furious TO themselves than to their
employers
International affairs have had little
effect upon our domestic conditions.
The victory cr Japan however. and
tlfc consequent opening OF eastern
mar5ets fo an comers Is full of nrom-
isc % American enterprise and indus
sry. Already some Of our manufac-
frrrrs are feeling the stimulus of new