The Cairo bulletin., 1907-10-21

| New York Oct. 19.--The week ha
been a period of feverishness and ur
settlement in the stock market. A
times the street was full of disturbin
rumors, and the embarrassment @
one important operator In cope
added to the prevailing demoralza
ltion. This continued liquidation was
lof course, a part Of the general reac
ttion which began with contraction il
the money market, was accelerated
by various exposures and Legislative
Iattacks, and Is now causing whole
I sale and somewhat radical financia
4 housekeeping How far the decline
lWill go, it Is beyond human knowledge
to predict, but it is safe to, say that
many of the rumors in circulation
| were gross eXaggerations, and that
| there is no need for any repetition OF
the financial hysteria which marked
the August break in the stock mar
ket. Since January first we have had
a shrinkage in securities Of fully, il
not over, $3,50o,O00, 600 Many good
railroad shares have had their values
cut in half during that period. The
industrials have suffered even more
drastic decline, being cut not only
into halves, but into thirds and quar-.
tiers. After such a tremendous shrink
age, 1t is almost folly to talk of panic.
Violent breaks may be possible, but
the chances Of a genuine panic with
all the disaster and arrangement
which that means are exceedingly re-
mote, Had the developments which
have recently taken place occurred
or the high level of a year ago, we
might, indeed have had to face a
AS it is, the stock market
has endured one of the greatest de-
clines IN history: decline equivalent
10 that OF a great panic but in an
orderly and well distributed fashion.
Losses have been enormous, but they
have been admirably met, and con
slderlng their extent, the disasters
following have been remarkably few.
It Is not too soon to take q very
reassuring view of the future: for it
is byno means certain that the house
process is complete. There
are still points of weakness in the
market, and no permanent recovery
can pc anticipated until these have
been thoroughly eliminated. Many
good securities, are today selling at
exceedingly attractive prices; but
,pyers will not take them until doubt
has been removed. and this con
inued Withholding of genuine buying
'as much to do with general weak
Tess. Moreover. buyers are becoming
discriminating, investors
moving a marked preference for Sc. |
'urities with management of high |
About the only buying
'lement however, at present is the |
hort interest. This abs been greatly |
extended, and purchases to cover on |
pronounced reactions appear to be |
he main support of the market for
be time being. The number of bears |
las materially increased. but that ele-
oent is conspicuously lacking in lead
rship. In previous years the big life
Insurance companies have often been
argc purchasers of stocks In times |
i panic or great weakness; likewise
he individuals more or less con
ected with the management of these
reat institutions. The law. how.
yer, now prevents such operations.
nd the market is deprived of that
cement of support in cases OF
The monetary situation shows little
hange. High rates arc still in force
nd bankers are discriminating sharp.
Z as to collateral aud names. While
rm rates are anticipated during the
of the year there is little
ar now of supreme stringency. The
nmands Of the interior for crop NOV.
lg purposes have about reached
ieir height. Very soon funds should
egin to return from the interior.
ecretary Cortelyou has not entirely
Exhausted his resources. and in case
emergency il is confidently be.
eyed he would afford further assist.
nee. The prospects OF gold exports
ave also been modified by an in.
reased supply of commercial bills af.
'rded by the outward movement OF
heat and cotton. Europe is taking
nr wheat much more freely. and at
resent high prices this adds ma.
'rially to. the supply of exchange.
ur foreign trade also makes more
lvorable returns. since exports are
lcreasing and Imports. decreasing;
Ius permitting a better balance oil
ado than was experienced during
&c summer months. In September
Ir merchandise exports were valued
sl35,300, 600. our imports at s106.
10000. leaving the excess of exports
II the month at Sc. 900. 900. A wear
90 the excess of exports was $685.
5000 and in 1905 the excess was
i4.000.000. For some time past the
has been toward a diminish.
E balance of trade. the high prices
'eyalent in the United States tend
2 to restrain exports and stimulate
lports.
The question now Of greatest mo.
ent 10 business men is: Are We
lthring a business reaction2 Every
dieation points to an affirmative
lswer. Wall street being The fnan-
Al nerve center If the corn+,-.- 4.