The Cairo bulletin., 1907-12-16

I
not yet entirely disappeared. but ~
ldeclinng It IS not known that clear
ling house certificates have been can
icelled TO any important extent, but the
prospects are that this policy will
lsoon be inauguratcd. The banks Of
! New York in their recent statement
lahowed themselves as a whole to be
in very good condition, considering
the tremendous burden which has
1 recently been imposed upon them
with scarcely an exception the clear
ling house banks have shown a very
clear recognition Of enlightened self
Interest by dipping into their reserves
land loninG freely IN time Of dis
Itress. Their policy has been in very
| Favorable contrast to that adopted at
lmany other cities where in some III
lstances banks openly boosted of carry
ing reserves from 30 To 50 per cent
when the New York banks were
lstraining every resource to help those
I'm trouble II Is unfortunate that so
Imany institutions glaringly failed iii
ltbeir conception Of responsibility AMI
lduty In times Of disaster; especially
Us by The pursuit Of such an ultra
Isellsh policy they aggravated rather
Ithan ameliorated difficulties which
must have reacted upon themselves or
fhcir associates. AT any rate, the
banks Of New York have passed
Through the crisis very satisfactorily
IThere may be some wedding out o.
Iunsound ar useless concerns but there
has been no signal disaster in this
panic among the New York banks. The
TRUST companies situation is the chief
source Of perpleXity now During the
IneXt two weeks the stringency ~
money may be continued in view Of
the preparations for January interest
disbursements and settlements Incl
dental to the close of the year.
good many maturities. will also have
10 be extended during the next few
weeks and this may 'pdd to the firm
lHess in money bit after the middle Of
January the tendency Should again be
towards easier conditions Funds
with drawn for crop moving purposes
will soon begin to return from tho
interior. while money withdrawn by
interior banks during the panic viii
also come back with considerable free
dom. The distribution Of January
dividend and interest payments will
ba helpful stimulating the investment
demand somewhat and enabling MANY
individuals TO lessen their indebted
ness. Last year these payments
amounted to about $iS0,000 900; this
year they VIII probably exceed that
figure owing to the large issue OF
notes and other securities during 1897.
Some decreases in dividends have
been announced and more may fol
low, but these are not likely TO prove
sufficient to offset increased payments
ia ur-rer directions
The speculative situation is conflict
ing. our panic is unquestionably
over, but the after effects are still
wie4 ,qs Tit4q~& required to complete
rea1fustment to the new conditions
as well as TO enable recovery from the
tremendous losses suffered during the
year. The undertone is certainly to-
wards improvement but prolonged adj
yauces are prevented by an eager dis
position to take profits, and by the
fact that each high level when reach
ed is apt to invite freash liquidation
lin quarters where assistance was rem
dered during the late panic. Such col
ditions cause periodic short selling;
opinion on the market and strong
er bear party than has been seen foT
years. The bears. however, lack lead
ership and are not very aggressive;
for it is appreciated that security val
ues have had tremendous shrink
age, and that i'm the absence of further
disaster are more iiisely to, recover
than to shrink I'm many respects the
situation is really better than a year
ago. because,thc wofSt is knDsfn and
the future is chiefly a matter of recog
milton cf aud adjustment TO changed
conditions.
In general business reaction is be
coming more and more apparent. II
has all along been maintained in thest
iadyices that effects OF the late panic
would not be limited to Wall Street
butwould gradually extend to praetic-
Tally all departments of trade No
yembcr clearing house statements
lstrikingly confirm these statements
The total clearings at all cities in the
United States in November showed
the extraordinary decline of 30 per
cent. including nearly 81 per cent in
the middle states. p per cent in New
England. 1G per cent in the middle
west and 1G per cent in the South
/ The smallest shrinkage was naturally
on the Pacific Coast. whore it amount
ed to only about per cent New York.
az course suffered more than am
iniher cts. the percentage 81 decliGc
Here amounting 10 ever 30 per cent.
/ The total clearing in al cities for the
lHouth arere gated $4,000 090o00. or
about S4.e0a. coo coo less than a year
ag1 IN New York citv the total
ciealfnes aggregated $500 100000.
decrease Of over ss.ooo.e0o. o00 within
1.-THE month This IS an extraordinarv
] f-...r...-- 81 -roa.I.- tia-.-t-.f.r sl.