The Cairo bulletin., 1907-04-01

! III small lot of securities has beer
but the market at large was conspicu
ously lacking In big pool buying
lpoWer. This is explained by the fact
F! that very heavy losses have been sus
tanned by such previous holders;
confidence in pool operation has
been badly shaken. besides the float
ling supply of capital has been prac
| tically exhausted by the immense
offerings of new securities. and large
tsnms of the latter are still hanging
over the market. During January
and February nearly $500, 900, 900 OF
short-term railroad notes We're Of
ferea. Then over $500, 100000 of new
stock of various railroads issued to
stockholders OF record AT par have
also had 10 be financed These in
clude about Sl00.o00,000 by ST. Paul,
over S9000O,000 by the Northern
Pacific s25,000,000 by Northwest,
$4,000, 900 by Great Northern. $40.
100000 by New York Central and
neraly $50, 100000 by the New York
and New Haven. Besides these
heavy amounts it is well known that
many blocks of new bonds held by
various syndicates have been held al
first hands for months seeking rest
ing place in investors strong boxes.
With such a load as this, roughly esti-
mated at 81 ,000.000,0O0 and the buy
ing powers SO badly crippled. it Is
hardly reasonable TO anticipate any
extragagant upturn in the market. al
though there is justification for rea
sonable advance in prices after such
an immense recession which has
taken place.
The situation has been certainly inn
proved by the recent npheayal, for
the financial atmosphere has been
partially clarified and we are now in
no danger Of a severe panic. as threat.
ened few weeks ago. We can
heneeforward safely look for at least
partial relief in the money market.
Secretary Cortelyou's policy is now
definitely known TO be that of coun-
tesacting to the full limits of his
power the absorption of funds by the
treasury. This is encouraging, and
his action in regard TO the govern
ment deposits and his intentions in
regard I othe purchase of As have.
done much towards a restoration of
in financial circles. The
unnatural relations between the gov
and the money market are a
matter of common knowledge, and so
long as these exist there is no course
left but that of counteracting bad
tendencies as far as possible, even by
artificial methods which are not en-
tirely free from objection Another
source of relief to the money market
should be the recent drastic liquida-
ion. Borrowings on an enormous
scale by great spectators will no
doubt. temporarily cease; while cur
rency should soon begin TO return
from the interior After the middle
)f April-ff not sooner-we may ex-
sect rising bank averages and ces-
satioh Of the extreme rates for money
which have been experienced during
.he last six months This does not
mean that very low rates are in pros
oect-on the contrary fairly firm
rates must be anticipated for some
lime to come because demands will
still be large. There is disposition
N banking circles 10 be much more
aXacting as 10 collateral. and es
lscially in the matter of lending aid |
o new schemes. For some time to
come the latter will have to be post |
Doned. unless of the most desirable |
and substantial character We are
evidently i'm for period of more mol /
erati9n. and the country may con-,
slider itself fortunate. indeed that the !
crash which has occurred has not
been worse. In all probability there |
will be some slackening trade. There |
viii be lessened demand for Injuries |
or jewelry. for automobiles and for
commodities. And there
will also be a postpOnement of new |
projects which ultimately will dimin- /
sh the demand for labor and raw
materials until these come down 20 a /
over level, or until the country has
a fresh supply of CAPT \
al and had time 60 recover from the
staggering effect of the March col.
apse. which will prove a memorable
ne in the history of American
nance
A good deal of exaggeration exists
Is TO the effect of Mr.. Rooseyelt's al
iiude towards the railroads. " all
nc truth were known. it is likely that
le is not half so radical as some Of /
as enemies would have us believe
fhe danger Of injurious federal legis /
alton has unquestiOnably been mu- b /
That something viii /
'ventmally be done to prevent a repe
ition of old abuses must be- accepted /
s inevitable: but any radical or |
eriously injurious national leRisla- /
ion against Ame. lean railroads is al /
most impossible Notwifhstandingl
ne misdeeds Of some Of their man !
gers. tie American railroads are in .
90 sound position and of too great /
.enefii and importance 10 the country 4
Il large 70 perm, the passing Of any
dangerous legislation. President