The Cairo bulletin., 1907-02-04

! Inc above tlgufeS snow an unuSua
! depreciation in the value of Stock FIX
change securities. This demonstrates
that the curative process for the eX
cessive imitation of values and credi
| is making considerable progress. How
much further ii will go is entirely z
matter of conjecture. The shatl
breaks of The last TWO weeks have
caused heavy losses to be incurred
but these have generally fallen on
those best able to bear them. and not
upon the class of small Spectators
good many speculative accounts
have been closed by the losses occur
ring since January first, and the situa.
ton has been correspondence i'm
proved. the declines thus far having
met with no visible resistance from
controlling interests.
In the money market there has
been som improvement in local con-
ditions II is true that bank reserves
have not yet been replenished TO the
desired point, but high interesj rates
are working out their natural cure
and the strain upon the money mar
ket Is of a much less ominOus char
asteT than few weeks ago. The an.
nouncement Of about $1700000 of
short term notes since the first of
January is not altogether a welcome
development, and, all things consid.
cred, the money market has stood its
additional strain exceptionally we'll.
These short term issues, of course,
demonstrate the imperative needs of
the issuing corporations for money.
Fortunately. these borrowers are all
strong concerns. and the notes will
be considered excellent security and
if not placed in this vicinity, will find
a fair market abroad. This means,
however, that the stronger concerns
will secure all the funds which they
need. while those of lesser strength
and importance will have 10 wait for
more favorable conditions. Corpora
tions that are already doing large
and profitable business can easily af
ford to pay the extra premium for
accommodation. depending
upon easier conditions later on for
issues to take up these new obli2a
lions. A. the same time, interest
rates and the difficulties of obtaining
money are sure 10 exercise a strong
influence upon new enter
prises. New ventures and new inn
will certainly be delayed
ls much as possible This means a
lessened demand for materials and
abor until lower rates for either war
rant a revival of the enterprise. 1t
would seem, however, that we are
more from unbalanced ac
ivity than from too much prosperity.
Some industries have been much
more rapidly developed than others.
has been excessive in certain
departments of our business macIin
Fry, and the great bulk of the profits
IF industry abs gone to organized
abor Production and distribution
rave not proceeded in well ordered
ashton in all departments of our nal
ional life, and congestion has couse-
luently followed What we need is |
'eadjustment. and a toning down Of
EXCESSIVE activities. which have re |
suited in lifting values TO unreason. |
bile and unstable levels. This pro- |
,ess of SOLDERING or readjustment !
which we are now passing through |
las been accomplished BY the most |
natural of all forces-a tightening of
he purse strings We call this liqui- |
lation; and it is doubtful if II has yet |
un its course. In spite Of the recent |
ally lower prices are still expec ed |
or stocks. and ere long we may wit
less some diminished activity in Ger
ain departments of industry and |
POSSIBLY a dimunition of purchasing
merely owing to higher
'rices, but also to the SOLDERING effect /
Il reactionary tendencies
4 great deal is made Of The admin.
STATIONS attitude towards the rail
Dads and all large corporations As
natter Of fact. Mr. Roosevelt's as
,ressive policy in these matters has
lad less effect upon values than il
imposed The attack upon The North
IN Securities company: the move
or adjustment of railroad rebates;
he Beef trust and Standard Oil in
estigatiOns. all had little OF no effect
Ipon the market when natural condi-