The Cairo bulletin., 1907-05-27

which brought many prices down TO
about the level Of the March panic.
There were various influences at
work contributing to this result. In
| The first place some very important
speculative accounts which have been
| hanging over the market for the last
two months have been in process Of
| liquidation and discovery Of this fact
gave the bears an opportunity for re-
Incwed onslaughts. The rather severe
government report on Standard OIL
also tended to unsettle values, mas
much as it Induced irritation and
/ timldity in important financial circles
/ general hostility Of public opinion to.
wards corporations has a deterrent
effect upon new enterprise, and
causes more Or less cantiousness or
/ the part of capital II is quite true
| that many of the criticisms aimed at
operations have been merired and
| that much Of the opposition towards
them has worn the appearance Of
public hysterla Nevertheless. the
iatter phase viii in due season pass
OF and our corporations will be more
| honestly ana more fairly managed
So the ultimate result should be salts
factory to he public and stockholders
lalike. The interval of discussion
Iand reformation however. is sure to
ne more or less disqnieting and value,
may be temporarily unsettled in con
sequence. We are also in for a re-
newal of tariff agitation until after
the presidential election; which need
OF cause much disquiet since many
Of our manufacturers desire tariff
readiustment and would be actually
benefited by suitable changes. An
other and perhaps the most import
ant element of depression, is the con
tiEued outpouling of shorttetm notes
or other securities, several additional
issues having been announced this
week. These insistent demands for
new capital when the supply of the
latter is practically exhausted, are
anything but reassuring. II not re
strained they will bring on another
severe attack Of financial Indigestion
Doubtless the needs Of the railroads
which have been The chief applicants
are imperative, but they come at an
extremely inconvenient time, ana
should be deferred as far as possible
or changed in part against earnings.
The bond market Is still in a much
coneested condition and large
amounts are held awaiting lodgment
in investors strong boxes. What Is
most needed is a period Of rest which |
Would check now demands and give |
the country an opportunity to create !
fresh supply of caWtal from surplus
earnings. New capital can only be |
obtained from savings or profits in
business, but these are frequently |
threatened by great increases in ex'
penses and general national extrava- |
gance. Economy will soon be one of
the important necessities in provid- |
iGg fresh supply of capital.
The money situation is again at |
tracing attention. Rates are not I'M
duly high. but the possibility of good |
exports. which at one time seemed |
probable. produced more or less I'M |
easiness. For some time past our
trade balances have shown a ten
deney to climb, in spite Of the large |
increase in exports; and the recent /
advances i'm wheat and cotton natur- /
ally tended to discourage export de !
mand. At the moment. however, the |
conditions are not faborable to gold |
exports. Secretary Cortelyou has ii /
in his power to withdraw government
funds now on deposit with the banks. /
This would quickly check any effluX /
Of gold end at the same time leave
the secretary in q better position for
aiding the money market later on in
case oreAecessity.
The business outlook continues 4
complex and opinions vary widely as
10 prospects. There is a brisk de-
mand for iron products and for cotton
goods. Both are going actively into
and such products are in
many instances sold well ahead into
1908. In other directions reports are
not 20 favorable and manufacturers
are looking ahead with more or less
high costs OF CON-
modities and labor not only checking
demand but making extensive future
operations more or less hazardous.
Our railroads area lready feeling
1uife seriously the increased cost of
operations. Net earnings frequently
show important declines i'm spite of
heavy gains in gross. and railroad
managers are beginning to introduce
various economies: to shut down on
the unnecessary improvements and
to reduce operating forces as far as
possible. Such movements are not
at all general. buf they are multiply
ing and are significant indications of
business reaction. which is now re-
gaIded as much more probable than
six months ago In this connection
The attitude of labor is important.
since the advance in wages is one OF
he most important causes for eener-
ally high costs. IN all probability the
s1ranco v-aga movement has reached