The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-09-30

NEARLY all lines OF structural work a
good many contracts have been post
lponed, and new enterprises are being
confined to absolutely necessary en-.
largements or improvements This
causes material decline in the de-
Imand for all sorts Of materials for
constructive work, and also a lessened
demand for labor. The question is
how far will the reaction be extended
Much depends upon the haryests. The
wheat crop, as has already been stat
ed is fair one in quantity and very
profitable in price. A liberal corn
crop had been pronounced at good
prices, but unfortunately frost during
the middle of the week inflicted some
injury Corn and cotton are our two
heaviest crops. and as these are still
exposed to more or less injury from
frost, it is premature to be over-con
fident regarding them. Our farmers,
however, are sure of profitable sea,
son. They are out of debt and in
position to hold for good prices Eu.
rope is likely to be a free buyer of our
agricultural products, which at the
current level of values will be an i'm
portant factor in our international
trade balance and should provide d
liberal supply OF commercial bills.
Our working classes also with few
exceptions are well employed at good
wages. so that with these two favor
able factors, it does not seem prob
able that the country win have to
face this year anything more than q
moderate recession in business aetiv
ity. 1t should not be forgotten, how
ever, that we are in state of class |
prosperity not general prosperity
The reaction in business, such as
it Is, Is still confined to the East In |
the West and South, there are no |
signs of recession beyond the caution |
induced by high rates of interest and
the policy of restraint adopted by |
banking interests. Last week, for |
instance the clearings at New York |
increased "a per cent; at Boston IS |
per cent, and at Philadelphia per |
cent. In Chicago, they increased IA |
per cent during the same period at /
st. Louis Is per cent and at New Or |
leans % per cent Railroad earnings
however testify to the large volume |
of business in all parts of the coun-
try. In the third week of Septem-
Der 80 roads reported gross earnings |
of $500 900, an increase Of about 10 |
per cent over last year; and AZ roads
reported earnings in the first week OIL
September of $10,200,000, an increase
Of nearly per cent How much oil
this gain is due to the stoppage OF re
bates, passes. and other abuses Is not |
known. but there is every reason 70
believe that the volume of traffic is
FULLY as large, If not larger, than the
enormous volume of a year ago. There
IS less complaint of a shortage of cars
han last year. but this is probable
lue to the railroads having improved
heir facilities during the interval.
AS to the future of the stock mar.
xet, If no more unfayorable develop4
nents occur. the present reaction
should soon reach bottom prices; but
any serious injury to the crops
through frosts or important recession
n business or any other disturbing
actors would be quickly reflected III
'enewed liquidation of securities. The
government is showing a less aggres-
tive tone towards the railroads and
rusts, which will encourage the re-
storing of confidence, at any rate II
s probable that the market has re
'eived and discounted the worst
hocks from this quarter. Neverthe
ess, it will be important to watch the
POLITICAL situation and the anti-corpor
ltion movements of the government
HENRY CLEWS.
/