The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-01-06

| WIN our leading business men In
lsober frame of mind and generall
anticipating some trade reaction
This Is due to recognition of the fac
that the liquidation and readjustmen
which has taken place in the stool
market must to some degree be ex
pected In mercantile and industrial
affairs; and while nobody expects
such severe reaction in the latte
circles as has taken place in Wal
street. still IL is now admitted that tn,
mercantile credit situation is badl,
strained and that lower level fol
commodities must be attained before
general business can show any sub
stantial tendency toward recovery
That the process of REIMBURSEMENT Ii
mercantile and industrial affairs has
begun Is very evident, and how long
it will continue depends upon how
far corrective influences are allowed
to have free play. Wall street was
obliged to endure nine months OF
acute reaction and it Is possible that
the period of REIMBURSEMENT in mercan-
tile affairs may occupy a few months
to fully straighten things on a per-
manent basis.
1t does not necessarily follow that
the stock market should define in
sympathy with depression elsewhere.
Wall street has often been notable
for anticipating the future and run
ring counter to conditions prevailing
elsewhere. The financial panic began
and ended before general business
left its affect; the security markets,
therefore, are fairly entitled to re-
covery while the storm is spending
its remaining force elsewhere. During
1907 securities showed a depreciation
at over $3,500,000000. a
shrinkage which not only discounted
the various forms of OVERRIDING and
mistrust that precipitated the panic,
but also the possibility Of an era of
business depression. It must not be
forgotten that values were sacrificed
and unduly depressed by tremendous
forced liquidation at time when
buying capacity was completely ex-
hausted, During the past month
prices have been gradually recover
Ing; not through speculative buying,
but from the natural tendency to at
-ain level eonsonant with the
conditions; and this after
making full allowance for the pros
aects of diminished profits and lower
which are practically sure
o be encountered The most import.
INT fact in stimulating recovery is
he improved condition of the money
market. The currency premium has
disappeared. Our bank re-
erves are rising and very soon the
money market will be working under
natural influences. The stringency
'sually experienced in preparing for
January disbursements did not ma
erialize this year. Currency will |
hortly begin to return from the in |
erior: and the lessened activity In |
BUSINESS, together with declining
'rices, will quickly rebuild our bank |
eserves and leave us with plethora |
# cheap funds greatly augmented by 1
he additions to our currency supply |
Turing the last few months. Our |
upply of gold has been much aug.
1ented by recent importations; and
he prospect of its retention has been
improved by better finan-
ial conditions abroad. The Bank of |
England is in strong condition, as en-
hasized by reduction of its rate from
to per cent, and Loddon was very
lightly hurt by our panic. Germany,
DO. is in better condition, and seems
kelly to escape the financial crisis
nee feared: while France appears
otally undisturbed by our recent
nancial crisis. It is worth noting,
lso. that a better feeling is develop.
lg on the other side regarding Amer
can securities, owing to the fact
nat we are righting the abuses of
which did more to
iscredit us abroad than the vicissi.
ldes which came from legitimate
movements. American Sc
urities have always been profitable
, foreigners, and as long as they
re financed on sound principles and
y men of integrity, they will con-
nue. to enjoy a high reputation
lnongst foreign Investors. In esti-
lating the future of the money mar
ct, while not overlooking the I'M
sttled business outlook nor the I'M
railroad situation 1t must
Dt be forgotten that the coming ease
money Will exert a very important
feet upon security values. There
re many very wealthy individuals
no are only Indirectly affected byI
lsiness reaction and having large
cans will be sure to take advantage
easy money. When money is In
rye supply at low rates, as will be
lie case before very long. speculation
Ievitably reyives and more or less
fiation follows. This Is another rea-
N why the stock market often dis
lays activity and strength when de-
ression and stagnation exist else
here.
Our foreign trade Is showing not
erely gratifying change. but an en-