The Cairo bulletin., 1907-08-05

fancy prevails which is suggestive OF
strength. The greatest cause of dis
Encouragement was the statement that
new orders of the u. s. Steel corpora
ton had fallen off % per cent during
the past month This announcement
Twas received with perhaps more
seriousness than it deserved, mas
lmuch as it emphaized the fact that
the reaction which has been expert
enced in Wall street is slowly but
surely making itself felt in business
circles. The larger proportion of the
decline in steel orders was due to
clrtalment by the railroads made
necessary through the difficulty of
obtaining funds in the money market.
II has all along been held in these adj
vices that the practical exhaustion of
floating capital would enforce re-
trenehment In new enterprises, en-
largements and Improvements. Such
retrenchment is now being enforced,
and this policy will no doubt be con
tinued for some time to come. AS the
lailreads are the largest consumers
Of ircn and steel, any postponement
Of OUTLAWS on their part Is sure to be
quickly felt in the steel trade. When
monetary conditions improve the rail
roads viii be enabled to more freely
carry out existing plans, but during
the interval a period of slowing down
must be anticipated. There has also
been diminished activity in the build
ing trades in certain cities, and this
too exerts it's effect upon steel Other
products are also beginning to feel
this abatement in the demand. There
has been a smaller inquiry for cop
per; the price has dropped to zoe, and
a great many orders are held back
awaiting a decline to about 18c
figure that would still net very hand
some returns to the copper producers.
This weakening In the prices Of
commodities, which have really been
selling unduly high, is a welcome
sign. It means that the process of
wholesome reimbursement which began
seven months ago in the stock market
lis now beginning in commodities; the
latter being on such a high pinnacle
as to cause a general feeling of in
stability. A moderate decline in this
quarter to lower level, while it
might lessen profits, would only bring
them TO a more normal and safer
w mo
prises and orders now held in sus
pense on this account will be forht-
coming when commodities have also
come down to a safer and more nor
nal basis OF course this process of
REIMBURSEMENT is unpleasant, and to
some it will be very inconvenient;
but it must come, nevertheless, and
the quicker the situation Is fully
recognized the more fully will be the
transition. There is no gainsaying
the fact that while business continues
in a high state of activity, there is
still a considerable degree of distrust
induced by present abnormal condi-
tons; and ii Is really a healthy symp-
tom that the reaction has begun. es-
pecially as ii is making its appear
anee gradually and without violent or
unexpected developments. In nearly
all lines of business there is more or
less expectation that temporary reac-
tion is at hand; the only important
trade where demand is still ahead of
supply and indications are for an
other excellent season. OF course.
New York is less optimistic than the
west This is always true, because
New York is the first to feel down
ward movements. and being the finan-
cial center of the country, is naturally
the first to apprehend points of weak
ness and strength. The best feature
in the whole situation is the splendid
past three weeks Ideal weather has
existed in nearly all sections of the
corn belt, and while the crop will be
less than last years bumper yield the
prospects now are for a full average
yield, provided we are favored with |
good weather during August. The
crop is still late and in danger Of
early frost, but much depends upon
the next four weeks. The wheat crop
has also been benefited by favorable |
growing conditions. though the har-
vest has been delayed by rain; and !
cotton, too. has shown considerable |
improvement during the month.
As for the money market, condi- |
tons are still very unsatisfactory. |
Bank reserves have not been re-
plenished at the rate at which they |
should have been. and we are rapidly |
approac hing the period when arrange |
frents will have TO be made for finan-
cling the growing crops. With busi-
ness still very active and high prices |
increasing the demand for funds. with |
large amounts OF money still locked |
up in syndicates and great financial |
operations. prospects for the money |
market are anything but clear. High |
rates are practically sure to prevail. |
The question is. win we get through |
:he autumn without further liquida- |
tioi or financial Disturbance Ger
tainly there will be no general at
tempt to force a bull market until
o fer crof. fo,,,ondc hava baan uoffc-