The Cairo bulletin., 1907-07-22

ly due to exceptional strength il
Union Pacific which in turn was at
tributed to manipulation intended K
facilitate financing Of the Union Paci
fic loan The temperate tone OF the
Report OF the interstate CONNIE G.
commission on the Hartman investi
CATION also tended to restore con
lhdence inasmuch that it showed nc
disposition on the part Of the govern
lment to prosecute or be unduly severe
on MIR Hartman. The balance Of the
market sympathi2cd more or less with
| the in Union Pacific, and fair recov
1ery. has now succeeded previous low
prices The general situation was
| also improved by good crop reports
and by slightly easier rates in time
money From the agricultural dis
/ tricts reports are very encouraging,
and it is quite plain that we will have
| larger yields of corn, cotton and
wheat than expected month ago
| There Is nothing now to prevent aver
| age crops in general except their late
condition and early frosts; and since
there should be a good demand for all
agricultural products at profitable
prices, our farmers who are generally
considered the backbone of the coun-
TRY seem destined TO enjoy another
season Of prosperity. This fact has
no doubt had much to do with in
ducing better feeling abroad re-
specting American securities. II IS
not too much to say that London is
much less pessimistic regarding The
future Of our stock market than New
York.
The chief trouble with our own sit
Ination il s.ili in the money market.
The supply III floating capital has
practically been exhausted by the
tremendous over issue Of new socnri
ties estimated in the first six months
10 have been about $1,000, 100000, in
Guiding conversion and refunding
OF business is considered and The high
level Of values OH which business is
conducted II is easy to understand
the tremendous strain on credit and
upon our monetary resources. The
natural correction for such tension is
a period Of rest permitting the ac-
formulation from natiODal savings Of
fresh supply of floating capital.
II hag with the present demands of
large corporations the activity of gen
eral business and the approaching
crop demands It is evident that there
will be a pressing inquiry for money
during the remainder of the year. If
not well into 1908. Our bank reserves
seriously need replenishing during
the next six weeks in order to provide
for autumnal demands. In this con
rec ion il is encouraging to note that
we are in a position TO secure TEN
pofary accommodation abroad. We
are already borrowing more freely in
the London market, probably in an
ticipation of large foreign purchases
of our wheat and cotton; yet it is to,
be noted that London bankers are eX
ercising great discrimination in re-
gard 10 borrowers. The situation is
pae which certainly shows great inn
Corrective influences are
actively at work. and should not be
for only through their
rigid application has It beou possible
10 avoid serious crisis. The security
market has already had severe
shrukage. quite sufficient Il Is io he
hoped, to countcract all unfayOrable
figures. Beyond question many good
securities are selling below intrinsic
values. and are simply held down by
abnormal conditions In the money
market. As soon as the latter promise
TO disappear, we may look for grad
ual hardening in values. owing to the
quiet absorption of such securities by
shfewd investors who will quietly pick !
NJ the better class Of investments and |
them into strong boxes for |
keeping. II is quite evil |
sent. however. that there is no room |
for extensive speculative operations. /
because of the serious limitations of
The American money market. The |
rise in Union Pacific was almost en- |
irely manipulative ana was not par /
iicipated in by the general public, |
which is still practically out of the |
market
There is one division of business in !
which readiustment is still incom- !
pieie; in fact. has scarcely begun. /
Commodity prices are still very high. 4
.oo high. indeed. to permit nf any OK I
ensive plans extending into lhc a. /
lure. Copper is siill eeilinv IN the
hood II 2ec The sveraze I
cost # production IS placed at Zoe, I
ONE producers. Of course. are
turning GU copper at A very mtirh /
sver price than this. Consequently /
The margin Of profit is large and there
b. ample foom for recession. Other
metals have recently shown \ deciin- 4
ing tendency. There is no doubt that I
a moderate recession in the cost Of
sapie products would be highly bene-
fetal and aid IN restoring the general /
ituaiion 10 a sounder and more nor /
NAL basis. Nalues are now so high I
B. to materially threaten profits Gf /
and distributors. and /
10 check al operations extending into /
80 ffs--rra II a. $50 r 49,, /