The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-10-19

have kept our stock market in an un-
easy condition for some time past
| Our own political campaign and a dis.
Iturbed foreign situation. The former
difficulty will soon be out of the way,
and within a few daysp erhaps the
market will show whether 1t has or
| has or has not fully discounted the
results. Of the two influences, there
fore, the foreign outlook is perhips
| the most important in the long run,
for while it's effect here may be less
noticeable than our own election the
consequences are moro far reaching.
European markets are always much
more sensitive to international com
Iplications than is fully realized here.
At the slightest sign of international
friction the foreign bourses always
trembe and American stocks are Oft
en- among the first sold, simply for the
purpose Of protecting home issues.
Thus it happens that anywhere be-
TWEEN 20 and 30 million of American
stocks have been sold abroad recently,
the bulk Of which was necessarily TAX
en- by this market. That this new load
was assumed so easily is good evi
dence of the strong support which is
being accorded here But the tearing
up Of so important a document as the
Berlin Treaty. which is what Austria
has virtually done, is certainly an
enent inviting awkward if not difficult
complications. War will now probably
be escaped. or at least confirmed to
struggle between some of the smaller
States; but very delicate condition Of
affairs known as the balance Of pow
err having been disturbed, there IS
sure to follow a period of uneasiness
lasting until diplomacy succeeds in
adjusting the problems which will CON
front the new conference. Already the
great Powers are realizing
Britain, France and Russia on one
side Germany Austria and possibly
lltaly On the other. AS events progress
thc cor fusion Of issues and the grow
ing rivalry between Great Britain and
Germany become more and more pro-
lounced and threaten to be among the
chief difficulties in shaping new
agreement. No one can possibly see
any preat chance of a struggle be-
tween these great nations becomes
more acute each year and it is not
without special significance that each
is watching the others naval progress
with exceptional closeness, that Ger
many is outmaching England in the
building Of Dreadnaulghts and that
neither could now be brought to an
agreement restricting their armament
soley because of rapidly growing mu-
tual distrust This, as just said, may
not mean war, but 1t does mean that
the great nations of Europe will be
compelled to keep up their costly arm
aments and oppressive forms of tax
alton at a time when the people OF
Europe are grooming under these bur,
dens and seeking relief Perhaps the
tune is coming when the mere cost
of war will prove its greatest proven
ton. Certainly Americans can con.
graduate themselves upon their immu-
nifty from such costly protection
against jealous neighbors.
A frmer tone has ben developing IN
the money market This was partly
due to declining bank reserves. %
shipments of currency to the interior
to slightly increased activity in busi.
mess. to purchases of American stocks
sold by foreigners, and to preparation
for new security issues. The latter
movement is likely TO play more i'm
portant part than of late as there are
still a number Of large corporations
in the market whose demands were
postponed as a result Of the panic.
one important issue was announced
this week. and others will follow dur
ing the next three months. In addi-
ton there are several refunding prop
Iositions Of some importance that may
make temporary demands upon the
money market As to the Interior
movement. that is again proving larg-
or than expected. The growing fnan-
cial independence Of the West always
creates the expectation that this in
lterior efflux will b. light; yet the fact
that interior banks leave their sur.
plus funds on deposit here and draw
.uor then during crop and trade &C.
/ tivitv l-=ers tire 70 and fro move
lmeut alive longer than many snticf
lpste. There has been some talk ri
geld exports. largely because Of the
scarcity q bills. and the recent buy