The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-03-11

Il shrinkage of ranging from Is 10 -
points reaction in The active shares
This enormous shrinkage in Stock
Exchange valuations has been accom-
nplished gradually and without an,
apparent serious consequences. o
even symptoms OF disaster On Wed
lnesday he market received severe
shaking down such as in some condi
Itions would have suggested panic In
fact it is a question us to whether
we have NOT been through Il pcrioc
Of panic adjustment, stretched oyel
several months instead OF being con
C ntratcd into 4 few days. That the
market stood the violent break Oh
| Wednesday WithCut disaster or IN.
mors thereof was demonstration of
soundncss that was hardly expected
| In view OF the tremendous dccln
which has already taken place ami
| of he manner in which that test was
! met il is proper 10 ask, Are we not
| app oaching turning point in the
marh L? Apparently we are The
fact that We are now on a much lower
| level Than six months ago diminishes
fear of panic. | is evident that the
big holders sold stocks freely in the
latter part Of 1906 and commenced to
buy some of them back on Thursdays
sharp cline The market. there,
fore is consequently in much s<fer
technical position than for many
months The aeyege liquidation Should
very shortly be reflected in an i'm
provement in monetary conditions II
is true local bank res rves are at
very low ebb, and the national bank
statements published at the end q
January showed that the West ha,
been lending its surplus funds freely
in New York AS tha time approaches
for the April settlements, the co@rse
Of he local money market will be
watched with much interest. Should
the interior freely withdraw balances
held in this city, we may see sharp
spasms in local rates. Yet recent
liquidation in stocks ought s8on to
bring considerable relief and be Re
4 ctcd in better bank statements
After the April requirements have
)een provided for, we look for in
3rovement in this respect. and by
midsummer--if not in the spring the
money mark should be materially
easier and in a more comfortable pos
Zion.
The possibilities of gold imports ar2
encouraging. II is quite evident that
we arc a dominant influence in the
Ho'ld's moyem hts Of gold. Should
we need that precious metal we will
3e able 10 command it and will no
doubt Xercse the power when neces- |
saly. Our international bankers seem
TO respect the feelings of for
eign bankers for the reason that they |
10 not wish o stiy mp any further ami. |
mostly against American fnancc-a |
policy that is wis, in view of the
TACT that We may still be obliged to |
seek aid from abroad in the market |
ing Of our securities. If our railroad !
managers are correct in their calcu- |
.ations there is still a large supply |
IF these forthcoming for tn purpose !
)f carrying out imperative railroad |
and il is desirable that |
ne market for these should be cult |
,ated and not spoiled by oytr-insis--
mt demands for gold and credit
tbroad The market was. of course.
excited on Thursday by
he report hat two prominent uper-
ltors had secured control of Reading.
As yet the outcome of the movement
IS not disclosed Evidently there is !
4 spirit of rivalry between our great
'ailroad leaders. which. unless kept
Within reasonable restraint. may east.
y create occasional disturbances in
he rOcE market We have previous.
Y seen the effect Of such rvalries up.
IN market yaIu S. and il is to be
Iopsd we are 10 see no repetition of
he experiences which happened !
CIV years ago when comp titiOn was
% rife Between many of The same
men. .E -
Apart from these movements. he
abroad situation is not satisfactory |
irlss earnings II is tr.e are large
mt the number and extent OF declinesi
n net earnings are increasing 10 a /
significant extent. II these continue
{ is quit certain that some of the
ecent advances in dividends will not
,e permanently maintained. and r..
ucti0ns will FOLLOW General trade
ondaions coutinue Satisfactory. Busa
less j. on FAC ac tesle. although as
n. the case7-of railroads thtre Is an I
ncrea sing complaint of diminished
rUfts. Al present, however thers
S no prospect ir sight 6f dimUution
a business. except such as Is likely ,
o come from railroad retreachm NJ /
he latter is a forcEone conclusion.
several OF fbe railroads have anil
bounced their intention Of keeping ,
own on lays for now improyem MS
& as low figure as possible. and /
omo railroads have already cancelled f,
riders for locomotives. cars. etc. til +.
his policy continues. it. is likely 10
.atc q eri-tIne eject upon n iron
Ei =irel Industries. Whether tihls I.
rim extend ro-Gfhcr depsrtm Of 4,
a3u ~ Gr H.. remains 10 other de. n
aunerfs 8f inLCctry OF not mains