The Cairo bulletin., 1907-10-14

New York. Oct. 12.-Special.- Con
lfidence has received another rud,
shock through the amazing exposures
resulting from the Metropolitan Sc
lcurities investigation. 1t is now owe
two years since public disclosures o
breach Of trust In high financial cir
Giles began, followed by the collapse
of the copper manipulation, and final
lily these later scandals connected will
the local traction situation. Hence nc
wonder confidence Is seriously dis
lturbed! And who Is responsible:
Messrs. Roosevelt and Hughes, who
have been the instruments of expos
lure--or the individuals who conceived
and conducted these operations and
ABUSED the trusts placed in their
charge? OF course, the guilty protest
against financial housekeeping. OF
Icourse, they endeavor to ward off Of
fetal Investigations on the plea that
they disturb confidence. But respon-
placed distinctly where it belongs :
upon the perpetrators of misdeeds and
not upon those who are the means of
turning on the light and preventing
who have trified contemptuously with
public interest and displayed a blind
disregard of stockholders rights are
the real culprits. 1t becomes daily
hof mi DJ
tons are honestly managed, the pub
lie and stockholders viii get their
dues, values will become more stable,
and American credit which is now ut
such a low ebb in all the great finan-
cial centers of the world will be re-
stored to its rightful status. Through
out all these disclosures there is one
glaem of encouragement; and that IS
that public opinion is aroused and
will insist upon clean, as well as CAP
able management. Eventually, these
will result in the raising
Of the standard Of corporate manage
ment, but meanwhile the public Is
dazed by these scandalous revelations
and wonders what next financial mi
guilty viii be brought to light.
Stock market values were also UNI
settled by other influences. Monetary
are still very unsatisfac-
tory. The demands for moving the
crops and for general business are
very large; the situation being ma
terially aggravated by the high prices
for nearly all commodities.
The situation is rendered more acute
by the fact that we canont depend
ipon Europe for financial aid to any
hing like the degree which we have
lone for the last three or four years. |
)ul credit abroad has not only been |
impaired by well known conditions, |
,ut we are less able to command that |
assistance than usual Usually at this |
season there is an ample supply Of |
which can either be depended upon |
o bring gold this way il needed, or
o extend our credit abroad Exports |
If both wheat and cotton, however |
)rices. 1t is probably true that event |
rally Europe will be compelled TO |
AXE our wheat and cotton on a high |
,asis, but the fact that foreign buy |
rs at present are holding off is more
IF less detrimental to the local finan |
.ial situation. The Bank of England
eserve declined this week to 46lb per ,
.ent, and the Bank of France is also /
umored to be figuring on drawing
sold from this side. Were our bank |
eseryes in a position to stand any
strain, the situation would /
,e more assuring, but surplus reserves !
re very low and their restoration will I
'e difficult until crop funds begin to
eturn from the interior, which at the
arliest win not be before Novem-
'er first 1t is possible that Secretary |
'ortelyou win be able to give the
market further assistance In case of
and his prudent course
f relieving pressure at points of
.ecessity without unduly exhausting
lis sources of relief. is one that gives
ope that further aid will be forth
oming is needed.
The situation abroad is still unsat
sfactory. On the Continent especially
here seems to have been a very SIM
lar OVERRIDING to that which has been
experienced i'm the United States.
'apital is practically as scarce over
here as here; the principal difference
eing that the situation is not agra
ated by the discreditable operations
shich have unfortunately occurred on
his side. Local bankers are exceed-
ngly conservative. showing a dispo-
ition to curtail credit and to be much
1ore exacting as to collateral
There is just one other element
-hich tends to delay the restoration
+ confidence. and that is the growing /
that the present year has
fitnessed a turning point in business
nd that we are to face at least a mod
rate business and industrial reaction.
Vail Street has held TO this opinion
ar uc,,aa time uacf ht1t tho courfoffon /