The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-12-23

al conditions which have taken plac
during the closing year, We have dc
Iscended with unpleasant violenc
from an abnormally high level to Al
exceedingly low level, and the SUE
ceeding process Of REIMBURSEMENT |
painful but imperative. The NOR
promptly 1t is recognized and TIL
more promptly arrangements ar
made to go ahead on the new basis
the quicker will be the real recovery
While there are still many unsettlinl
elements in the situation, it is salts
factory to observe some compensa
lions which may be too easily los
sight of in the prevailing gloom. 1
must not be forgotten that our farm
ers are in strong financial condition
| the happy result of a series Of yer,
profitable haryests. This season is
sure to be good one for all engaged
In agricultural pursuits No sucl
situation existed in previous panics
when our farmers suffered to de
gree which is now impossible. This
| may be class prosperity and, there
fore, less desirable than universal
prosperity but the financial strength
Of our agirculturalists is going to
prove no mean bulwark against the
attacks of depression. Our farms pro.
duced $1,000, 100000 of our wealth this
year. which cannot be obliterated by
any stock market panic.
Another consideration that should
not be overlooked, and to which due
weight has not been given, is that our
mercantile and industrial conditions
are generally sound and free of the
oversupply which characterized the
panic of 1893 Thus far there are few
signs of overproduction in the textile
field, the third largest division of ma
tional industry. The cotton mills of
the country are in an especially
sound condition financially; and to
avoid the consequences of overproduc-
ton are generally foil owing a policy
of curtailment. In this direction at
least there are no signs of weakness
and our mills are in excellent shape
for meeting reaction. The same can
be said regarding the food industry,
which ranks first in Importance. 1t
ia almost impossible to find any mar
ket in this division of business over
supplied. In fact of all Of the mer-
camille markets there is little or no
complaint of overproduction, the only
weakness being in occasional cases
of unwise expansion and over-exten-
sion of credit. In such instances the
present condition of the money mar
ket may cause some embarrassment;
especially should diminished con.
sumption and lower prices, which are
inevitable, make any serious inroads
upon profits. We emerge from the
panic, therefore, with the mercantile
and industrial situation generally
sound, and with the signs of reaction
chiefly limited to interests which have
been excessively stimulated by ex-
traordinary expenditures of the rail
roads and unusual real estate ac-
tivity. Thus 1t is gradually being
demonstrated that our difficulties are
largely financial; that to a very great
extent this has been a Wall street
panic, and that there are reasons for
believing that it's effects will not be
as widespread as that of its predeces'
cessors in 1898 or 1908.
Such industrial OVERRIDING as is APP
parent has been chiefly confined to in
terests corrected with or dependent
upon the products of the mine. Great
has occurred in the gen.
eral industrial plant of the country
although apparently not yet in excess
of the demands of rapidly growing
The greatest degrees of
OVERRIDING outside of Wall street has
PROFESSIONALLY been in copper min
ing. The enormous expenditures of
the railroads for improvements and
the rebuilding in many of our cities
caused an extraordinary
expansion In certain industries: and
the cessation of these enterprises
partial OF complete--will necessarily
be severely felt in those branches of
industry and within the ranks of
labor thus employed.
More or less inertia still prevails
IT, the financial district: because the
house cleaning process is evidently
not yet complete. confidence RECEIVERS
slowly after so violent disturbance.
end the purchasing power of invest
ing classes has been greatly diminish
ed. The discouraging Influences in
Wall street have. however been so
discounted that 1t is pru-
dent to begin to look upon the more
hopeful side. There is no doubt but
that prices are still abnormally low
and must in due season reach a
higher level. Corrective Influences
have been at work so long that i'm
proving conditions must soon result:
and. saving the temporary stringency
experienced in January, the
money market ought TO gradually be
cnme easier and more plethoric with
the approach of spring. The last
bank call proved that the brunt of
the panic fell upon the New York
banks. which depleted their reserves
and expanded taeir loans 10 the limit
in order 10 give help. while the In
terror banks often drew their funds
from New York banks and piled up