The Cairo bulletin., 1907-04-29

accounts has afforded material relief
in the money markets not only IN
New York but also abroad The ex-
Ipected reduction in The Bank of Eng
land rate from ne to 4 per cent was
emphatic testimony of improyem mt
ODER there the situation has been dis
tinctly bettered by removal Of fears
thnt American demands might i'm
pcse a threatening strain upon Euro
pean reserves. Liquidation in March
/ removed this fear, and the situation
abroad is gradually assuming the nor
NAL. While the monetary situation at
home is easier owing to these causes
there are still points which call for
more or less conc ern. II is highly de-
sirable that our bank reserves should
1be strengthened. The last report of
| the national banks issued March 22a
shows that reserves in the interior are
| much b low the average. There has
been a tremendous expansion Of S400
100000 in loans without a correspond
ling gain in the reserve items, and the
banking situation in the interior Is
lone that demands general conserva.
tism, Western bankers appear to be
quite confident of another years large
business, yet at the same time they
recognize the necessity for prudence
Locally, the situation is much stronger
than three months ago; and the tire
mendous expansion in loans shown
during the last three weeks is largely
due to the transfer of accounts from
the interior and elsewhere to New
York. This should serve to strength
en- interior institutions; though it i'm
poses a heavier load upon New York
Nevertheless, there is a better feeling
in local banking circles than for some
reserves win shortly begin to riss in |
order to meet the trade and crop re-
quirements of spring and midsummer
Fortunately there are indications OIL
in the n demands for
capital The railroads are p3stponing
some of their new enterprises. and |
OUTLAWS to strictly necessary |
Bankers are also turn |
ing a deaf ear to new SCHEMES and to |
speculative propositions This policy |
Of caution, which is everywhere pre-
yaent, should avert any serious diff
iculties.
The opinion is growing that mod
crate recession in business must b.
expected The mere fact that new |
are being undertaken with
more care will result in lessened
demand for both commodities and sla-
1or. Reaction usually begins at the
op, and there is already a noticeable
essening in the demand for luxuries.
rhe shrinkage in Wall street wfe
cit most severely by the rich and the
veil 10 do hence the masses have
escaped its influence-for thu present
t least; only in course Of time can it
xtend itself throughout the line La
'or is still actively employed at good
wages and is consuming freely of all
roduets. This mears a continued ac-
i've consumption for all the great
taples of commerce. Much will de
end upon the next harvest Nearly
II of the crops are unusually late this
oason; but there is. OF course, ample
ime for recovery.
Railroad gross earnings in February
( "a railroads Amounted to S124,000
90 an increase over last year Of S.
10000. During the same period op
rating expenses increased nearly Sl0,-
10000, leaving net earnings $1,000,
90 less than in February of last year.
mis- is "A striking example of the eff
ect of recent tendencies in general /
# increased expenses
shows that in spit of much larger 4,
ross earnings. the increase In cX
cnses wiped ont all this gain and
1T instead a decrease Anothe in
ication which cannot be overlooked +
J that furnished by clearing house r.
lrns For the last three weeks these
ave shown a steady decline compar. !,
with last year. The heaviest shrink p
&c was, of course, I'm New York =
here speculation was al q minimum l
W. lA - ID Ut ADiFN lHhN an AEt1ti ~ I n
,adng cities in the east and also
j the west are showing smaller re
rms than year ago.
The future Of the mark does not 4,
romise any pronounced movement in
ther direction. Many Of the worst :
satures in the outlook have been
lily discounted and il seems quit
that the stock market has
so anticipated any moderate reces
on il business activities. II left 20
self. the market should gradually .
scOyer and assume a firm r tend
lcy. The period Of hyateria Is over =
nd confidence is slowly but surely
sing restored. In many respects the
arket is righting itself Reformstory
hu noes are at work and there Is NJ ii
'ason why values should descend tol p
~ materially lower level at present. al
8less unfavOrahle Development r,
lt yet seen-occur ] am not ono q
thoe who look for DISTURBING p
atemeufs from President Roosevelt b,
he rel rms for which he stands are nj
ali respects beneficial 10 the rail- p
ads and 10 the investors in such Sc s..