The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-12-30


ton; and the great majority OF te,
tile mills are In an exceedingly stron
financial condition, result OF tn
unusual profits OF the last two o
three years. There has been consid
erfble oycrcxpanslon in the retail
branches of the dry goods trade, bu
the condition OF the later as a who'll
is sound. Values have been abnorm
ally high, owing to various reasons
aud some recession is to be anticipat
ed. Otherwise, there Is no reason fol
apprehension from this division of In
dustry, save what may come from
crrtailment Of credit and forced liqui
dation
in one other great division of in
Idustry, that of mining, there has been
a marked and to some extent serious
contraction. Last year our mineral
products We're valued at nearly So.
| o00,0o0.000. Copper felt the reaction
more severely than any other com
modify, largely because OF the over
speculation and overproduction which
eliminated in August.
| These three agriculture,
| food and clothing-wll of course
somewhat feel the effects OF any cur
| tailment in demand but being neces-
stiles to a less degree than some
others. The industries likely to most
severely feel the recent collapse will
be those engaged in construction
work, including iron, steel, copper
and all building materials. These in.
dustries have enjoyed abnormal pros.
perity during the past few years.
owing largely to the practical recon
strlction of our railroads and the re-
building Of our great cities. The
growth Of railroad traffic and popula-
tion is marvellous and must be at
trlbuted TO the wonderful develop
ment in our mineral and Industrial
resources, all of which have grown
With vastly greater speed, than agri-
culture. In the iron and steel in
dustry, which last year turned out
S2,250 100000 of products, there has
fortunately been no overproduction
owing to an early recognition of bad
conditions and prompt curtailment.
This division, however, is feeling
more keeniy than any other the eff
fects of the financial condition. Our
railroads have been enormous con
sumers of iron and other materials |
during the last few years, and their
to finance projected and |
necessary improvements seriously re-
stricts the demand for all construc-
tion materials. The collapse Of the |
real estate boom has had a similar
effect; the big modern structures now
in vogue being heavy consumers of /
many mineral products and large EN-
)loyers of labor at very high wages.
When easier monetary conditions ar
i've and costs OF production have
leen moderated, a resumption in dc.
nand from railroads can be safely an
icipated; but liquidation IN real es-
ate is still incomplete.
The course of commodity prices
las of late been decidedly downward.
according to Sauerbecks' London
ecord-the best world indicator-the
ndeX number of commodity prices !
las declined from S2.4 in May, 1907,
o 76.7 at the end of November. 1907. 4
his is a decline Of over points In !
tx months; the heaviest shrinkage
eing in construction materials, food ,
remaining higher than a
ear ago. The yearly commodities I
verage of 1906 was IL of 1905, 70; {
nd of 1904, 20; so that we have still [
ONE distance to go before prices APP |
roach their normal level. Our local {
ldex numbers also show correspond /
lg movements This downward tend. I
ncy of commodities promises to be {
rolonged into the coming year, be I
ause of lessened demand curtail t
rent of credit and commercial liqui-
alton. So far stringent money has !
adj more to do with depressing val j
es than lessened consumption. Very l
Don it will be different and a shrink I
X consumption resulting from COM c
ulsory economy and an increase OF 4
ie unemployed will be the main q
lurcc of weakness. g
Railroad managers have. some knot. I
Z problems TO solve during the com
IL year During the tan months end $
IL October 1870 roads reported gross q
innings of $213,000, 900, an increase d
nearly $17000000. or almost . per G
mt compared with that of the pre- g
ous year. This would be eminently o
ltisfactory did it not belong TO the [
ist The rate at which expenses are %
creasing is illustrated in the re II
rms for October, which showed a Il
ain OF $13.000.000 In gross, but C
'owth ofsl7.0oO,0OO in expenses. and r.
farly s40oO,000 loss in net. This III
'Ormousr Increase in expenses, which 81
; not confined to railroads, IS o. Ia
'urse due to the. rise in materials g
ii labor and is serious matter. es- +
,cially considering the probability OF n
me shrinkage in traffic Our rail- 2
ads have also been seriously ON n
.rrassed by other considerations. a
ch as limitations of the money mar p
t. and hostile and unwise state G.
gislaiion. Besides they found them Z.
Ives unable To finance many Of the 3.
maile imperative by -
owth of traffic. over $3.50 qHn p0g q