The Cairo bulletin., 1907-01-03
FISH LOOKS FOR A
FINANCIAL CRISIS
Despite GOOD CROPS AND GOLD
OUTPUT MONEY is SCARCE
THE WORLD OVER.
BIG DEMAND FOR CASH
Caused BY caiamities, Wars and New
Venture s--Public Keeping Hand
Off of Wall Street-Condi.
tions Not Normal.

New York. Jan. 2,-Stuyyesant Fish
in replying 10 the question Are we
approaching n great. industrial and
political crisis?" says:
In point of time a great indu trial
crisis is due and there are many In
dicatlons of its being imminent.
put OF gold, moneyshrdletaoshrdluhr
Despite the unprecedented output
OF gold, money is dear the world over
and dear because of high prices and
activity in trade. Nor are other
causes for dear money wanting. Great
Britain has not fully made up Its
los SEES in the boer war; Japan and
Russia. particularly the latter have
scarcely begun to recover from the
effects OF their recent war Indeed,
It would look as If Russia had fully
financed the cost thereof and may
be on the verge of civil war.
Many caamities in 1906.
"tn the last year there have been
tremendous losses of capital in the
destruction of San Francisco and in
the less awful calamity at Valparaiso
and al its close we have famine In
China. Looked at the world over the
volume of the crops of 1906 was not
above an average despite the phenom'
email yield in the United States. Prices
of commodities are above the normal
is dearer than ever before. and the
tendency is toward higher wages and
shorter hours. conditions which are
economically wasteful as regards pro-
duct, whatever their effect may be
on the laboring classes.
Turning now to our country New
York, especially that part of IL. known
as Wall street has absorbed -anKissss
more than its share of the
loanable funds While our western
and southern banks-indeed, all banks
which are out Of town to New York
ARE lending more freely than usual
at this season. that which they lend
is instantly and persistently absorb
ed by Wall street.
Stock Exchange Plaything.
"The New York Stock Exchange
las ceased 10 be a free mraket. where
luyers and sellers fix prices through
he ebb and flow OF demand and sup
lly and has become the plaything of
/ few managers of cliques and pools
o such an extent that for months past
.very anouncement of increased diyi.
lends Of stock distributions and OF
lights has been met by a fall In
prices.
The investing public are and re-
main out OF he market. not because
VI ventures in lndustrials. in electric
a lways or in suburban real estate
he speculation in each of which was
checked months ago-nOr yet because
f the more recently picked bubble I'm
mining shares, hut simply because OF
he distrgst which even those possess
I'd of ample means have Of the meth
DDS Of corporate finance now in vogue
In New York. That Europe shares
this distrust OF those methods is
shown by its outcry against the mis-.
use of American finance bills.
Situation in london Critical.
Tho situation in London. the only
free gold market in Europe.
is by no means certain even II il NAV
not be called citicaL a 6 per cent
bank note has never before prevailed
for long a time. and IL continues to
prevail chiefly. If not solely. through
fear in London Of what America may
do.
VIII le il may contribute to our ne.
tional vanity as a world power and
az a financial center 20 feel that Lon
den fears us. that does not increase
in our own future. We are
still a debtor nation. Europe holds
vastly more OF our securities than
we hold Of all foreign securities.
In so far as orr political parties
Republican and Democratic-are CON
cerned. no crisis ran arise before the
presidential contest OF 1905 But 70
In the meanwhile We were 70 have an
Industrial crisis. accompa a-.ed by gen
eral staenatior and discomfort. the
unemployed and discon.ented would
Judging from past experience flock 10
the banner Of Mr. Bryan or possibly
Mr. Hearst
Il take =. however. that your In
qu.ry as 20 a political crisis relates
to other matters. and ir that sense a
political crisis is due and think
coming on
Predicts Good IN End.
Indeed. il seems 20 me that We
already are embarked on a long need
I'd moral financial reformation. which
like the religious reformation Of the
middle ages. will through much crue.-
CONCLUDED on Third Page)