The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-05-06

New YORK, May Especial. Con
Ivalescence Is progressing, and in both
the money and security markets the
|undertone shows Improvement In
monetary affairs the change for the
better Is worldwide and is not CON
fined to New York. In consequence
/ We have no, only had easier rates for
money the last few weeks, but bonds
have been more active and in better
demand, although transactions were
lstill much less than year ago. The
announcement Of $26000,000 8 per
cent Atchison bond Issue was some.
| What Of q surprise and must exert a
/ temporarily depressing effect. Mo-
only was the rate Of interest so higa
as to materially affect conditions in
the bond market, but the fact that the
road had recently increased its divi-
dend from TO 9 per cent brought on
the management more or less criti-
cism. Hereafter an Increase in the
dividend rate by any railroad will be
| apt to be regarded as a forernnner
OF bond issue or a shortterm loan
| The Achson, however, is not the only
| road which has adopted the question
able policy of increasing its dividends
and then coming into the market for
new capital. AT best such policy
| IS undesirable; for some of the i'm
lprovements which railroads have I'M
dertaken could have been gradually
inTnViIaI nG n of IA GpL
and thus kept down capital and obi
cations which have been enormously
expanded during the last few years.
Apart from this feature the market
shows an improving tone Confidence
is Enthusiastically gradually returning,
and gradually also, but surely, the
money markets OF the world are right
ing themselves lnordinate specula-
ton in Europe and America has been
aubstanf tally check d; and the ex
cessive demands for new capital,
which were chiefly responsible for ex.
hauSting our monetary supplies, have
.abated because Of \ the universal rsr
sfrafnt placed upon such demands by
bankers at home and abroad. This
conservative policy by banking inter
ests has probably saved us from
dangerous reaction, and it should be
adhered to unfaltsringly until our
tlnaces. industries, and commerce
have been once more placed upon
sound basis. 1t is not to much to
say that we approach the second half
of the calendar year in a much safer
condition than we did the first half.
There is far less distrust now than
at the close of 1906 Then the high
level of security prices and the scar
city and extreme rates for money in
dnced general apprehension that n
financial npheayal Of some sort was
in prospect. There was also much I'M |
easiness concerning the political out |
look and the universal social discon |
tent. In all three of these directions |
there is a distinct change for ths be-
ter. The March Collapse distinctly |
cleared the financial atmosphere: |
while recent efforts towards reform !
are doing much in lessening the dan
Street has, of course. been more or
less disturbed at some of the extreme
ly radical Legislative proposals, but
time and discussion are proving that |
many of these apprehensions are I'M
because the only reform
which is likely To be successful is
that which runs on the lines of
square dsa,' beneGting all inter
ests alike.
business conditions continue sat
There is large demand
for all commodities. except luXuries
and no sign of important diminished
output or demand. The extreme con
servatism which began in banking
circles has extended itself TO the
heads of mercantile and Industrial
establishments. For one reason or
another there has been a halt in new
projects. Engagements, and all forms
IF expansion. This Is fortunate. in
as much as q gives time TO asccr-
ain whether our means of production
have or have not outrun consump-
i've requirements. IL viii also give
line TO demonstrate VIII Their the
present scale of consumption can be
or whether commodities
nus, recede to lower and more nor
nal level. Whatever views are taken
IF the present outlook, they are ex-
.remely varied: yet there is little or
no reason for extrem1 pessimism. All
hat is needed is patience and caution.
which should save us from further
disaster CmtiCn is especially needed
n the real estate field. where there
las been much OVERRIDING in the deyel-
,pment of new secti0ns-not only In
he vicinity Of New York-but all over
he country and particularly in some
ortions of the West.
Tn season is now approaching
when crop news will become an i'm
DOTtant factor in business calcula-
ions. The season is ten days TO fWo
weeks late and some injury is re-
,orted 10 both wheat and cotton. but
planting Of the crops win not be
completed for S versl weeks 10 come