The Cairo bulletin., 1907-09-02

4Nt" ioih, aug. 81. some improve
inent can be recorded In the financia
situation, which was due partly to n
dictionary influence partly to the sal
isiactory policy of Secretary Cortel
you, and partly to the efforts to TAX,
up the new forty million New Yorl
City bond issue which indicates reyiv
ling confidence. After such yiolen
reaction as has been experienced dur
ing the present month, partial re
coVery was TO be expected; because
: liquidation had been exceedingly thor
cush and the purchases Of an import
LIANT short interest contributed to 1
Erally. Whether liquidation has
reached the end or not, 1t is some
what premature to decide Much de
Ponds upon the future course of the
money market. The credit situation
has undoubtedly been greatly i'm
proved by recent liqnidation and this
lof itself should afford substantial re-
lief The outlook, however. for the
Emoney market continues uncertain
Firm rates are likely to prevail
through the balance OF this year, al
though il Is to be hoped the extreme
! figures reached two or three years
Iago will not be repeated. Neverthe.
| less, it is idle to conceal the fact that
| there is more or less anxiety concera.
ing tn monetary situation. Very
shortly we shall be in the midst of
the crop moving season The pros
poets are for full average crops If we
escape early frost, and as>farm values
are upon an unusually high level me
monetary requirements this fell will
inevitably be heavy. According to all
| accounts, business in the interior con
tinues upon an active scale, and as
values Of all commodities are very
high, the requirements for business
purposes must be correspondence
large,
Had it not been for liquidation in
he stock market the strain upon our
monetary resources would have been
exceedingly serious, if not disastrous.
AS it is, the legitimate autumn de-
mands must be faced, and the de-
mands from financial circles will be
held in allegiance for some time TO
Gene the New York City bond issue
being an exception. 1t is quite evil
dent that Wall street will not be able
to obtain anything like the accommo.
cation in London with which ii has
been favored for several years past,
and even Paris and Berlin are becom.
ing shy of American borrowers. For
tunately for us the strain in Europe
appears to have been patially re-
lieved; since had it been further ag
gravated we would have been com
PEELED to part with considerable
amount of our present stock of gold.
Grain and cotton bills should soon be
in larger supply. thus tending to ris-
courage any effux of the precious
metal. Our exports of merchandise
continue large in volume and at the
present high prices obtained for our
products, the net result should be a
continued favorable trade balance. At
the same time our imports are also
running heavily and keeping down
the former large excess of exports.
The chief danger in the future is a
crisis in the money market. II is to |
be hoped that this will be averted as /
the result of past liquidation and |
prudent action by the banks |
The latter should continue 10 lend i
freely to all sound. going concerns, !
since an undue curtailment of credit |
&C this time might easily precipitate |
disaster. OF course the blow in Wall !
dustrial and commercial circles; par.
ticularly in respect to new enter
prises, or the enlargement of old
ones. Wall street has unquestionably
pretty well discounted all unfavorable
and further reactions in
securities ought to bring prompt raj
lies. The commodity markets. how
ever, have not yet shown any general
tendency to recede from the present
high level. Costs of pro-
auction have been greatly enhanced
by the rise in labor and commodities.
DlS TACT mas more 10 90 Wltn the
present stringency in money than is
generally supposed While our sup.
plies of capital have been exhausted
by recent demands. it is also true
hat the supply of money has been
rendered inadequate to a large ex-
Lent by high prices in all commodities
II we are to return to more normal
1t seems inevitable that
some reaction must follow here; net
10 the extent which has been ex-
Derienced in Wall street. but still to
q substantially lower level than now
s~sts. Such a decline. If well dis.
ributed and brought about gradually.
would place our industries upon a
more substantial footing Enterprise
S mquestionably checked by high
,osts of production quite as much as
~ monetary restraints. and moder-
lte recession of such values would ar {
ord substantial relief in all quarters.
Operations I'm the stock market
hould be conducted with great care.
While the worst in respect TO liquida-
ion is probably over the market is s
till exposed to further iurries. The !
manner in which the late drastic de-