The Cairo bulletin., 1907-07-15


market. Confidence has been some
what unsettled by the aggressive at
titude Of Federal, state and city gov
iernments towards corporations; BY
sensational reports concerning our re
lations with Japan, and by uncertain
ties regarding the monetary outlook
which remain perpleXing. Bank re
Iserves are excessively low for the
season and are being further deple
ted this week by large treasury alb
scorpions. We are now within six
weeks of the crop-moving season
when requirements on that account
will begin to assert themselves and
when bank reserves should be rising.
In view Of the present insistent de-
mands upon capital an dthe practical
exhaustion of supply, the outlook for
the money market is anything but
satisfactory. Firm rates are almost
Isure to predominant, and there is no
possibility Of any continued bull move
ment in securities under existing con.
ditions. Whether more gold will be
shipped to Europe or not does not yet
appear. Under ordinary conditions
such shipments would create no un.
easiness considering our ample supply.
| With the situation as it is, gold ship
lments, however, are watched with
more or less Jealousy. Time money
rate is 6 per cent running into next
January, and there is no prospect Of
iany material Improvement in sight
! The practical failure of the Atchison,
Union Pacific and New York city
lloans is particularly significant, es-
pecially in view of the present con.
gested condition of the security mar
kets.
Another source Of unsettlement has
been the rather suddenly aggressive
attitude Of the government towards
the trusts and monopolies. TO say
nothing of state and municipal &C.
Itiyities in the same direction. There
lis no doubt that public opinion de-
mands that some restraint be put upon
the monopolistic abuses of great cor.
operations. The use Of corrective
measures. however requires great dc.
liberation and caution, and the recent
faction against the Tobacco Trust. be.
ing altogether too rapid and too dras-
tic, is likely to unsettle general conf
dence and 10 iniure many entirely
inocent parties. As there are some
doubts about the constitutionality Of
the latest step of the government, it Is
perhaps premature to indulge in any
excessive apprehension regarding the
consequences. 1t may be necessary
for the government TO modify or mod |
crate its present attitude. Whatever
the legal possibilities may be, it is |
hardly good policy to resort to such |
radical treatment, Such drastic meas |
ures are scarcely needed and If the
surgeons knife is to be applied. II |
should at least be used in the most |
skillful and least injurious manner. |
Contracts in restraint of trade are
probably inevitable to some extent in |
modern business. IT Is mainly a ques- |
ton as to whether such contracts are !
just and reasonable in their opera |
tions. If monopoly is TO be prevented |
it cannot be done by attempting the |
impossible task Of breaking mp AMI |
redistributing huge corporation into
its original parts. Such a procedure is
wholly impracticable. There Is no |
doubt that fragrant abuses have crept
INF he - 81
and railroads and that
public interests demands their cor.
rection and regulation: but the latest
cure would be worse than the dis
ease; and the government must adopt
more rational methods. unless 1t wish.
es to bring on a crisis which would
destroy its own supports and delay,
If not wreck the cause of genuine re-
.Grm.
Another cause of apprehension has
been the foolish talk of war with Jap.
an. There is no possibility in sight
Of any serious trouble between us.
Japan is neither able nor willing for
a trial of strength with the United
States. Her statesmen are too wise
10 consider any such contingency pos
sible. Japanese finances have already
been strained by the war with Rus
STA. and Japan possesses neither the
money nor the credit necessary N
carry on war against a country of
such strength and resources as the
United States. Financial considera-
lions alone are such as TO be an ef-
fectual prevention against hostilities
between the two countries. Japan IN
1hesiionably has some cause for irri-
tation at the treatment Of the Jap
lnese in California and the delay n
our government 70 rigidly enforce
Iapan's treaty rights in the state Of
is a shortcoming on orr
part that ought. from a sheer sense
IF Justice. to be reciified There s.
no doubt. whatever. that n the points
4 controversy could be left TO the
diplomats Of both countries that all
points Of irritation would be quickly
The crop OUTLOOK at present Is the
hest feature Of encouragement The
country has now had month Of fine
growing weather. thus doing much To-
wards recovering from a very back
ward spring. The wheat harvest fs