The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-02-17
Special.

Special.
On the stock exchange during the
week there were a number of import
ant fluctuations which contributed
more or less activity in special stocks
but a comparatively quiet market In
others. The recent panic, however
Is gradually becoming a matter Of
district are disappearing by degrees
| Confidence has certainly recovered
considerably and the money market
mas settled down into more norma
conditions. Loanable funds on good
collateral are plentiful, and good Dor
rowers find no difficulty in securing
all the accommodation they need at
| comparatively low rates.
| The relief developed in the money
market has been the result of unim
peded workings Of natural forces. II
can safely be said that reimbursement
| III the money market has been more
complete, as we'll as more rapid, than
| in any other department of business.
This is important because it paves
| the way for REIMBURSEMENT elsewhere.
We are still descending from an abb
normal level to the normal, and the
process naturally goes on more
smoothly in some divisions than in
others. In the stock market, for in
stance the REIMBURSEMENT has been
much more emphasized than in the
merchandise markets. There has
been no organized or artificial resist
ance to a decline in the rates for
money There has been some con
certed opposisition to the decline in
stocks, but beyond the effort to checr
the panic there was nothing remark
able to interfere with the readiust-
ment in securities. In the main the
stock market has yielded to natural
forces during the last three months.
In the commodity markets however,
especially manufactured products, the
situation is radically different; for in
that quarter there are very few indus
under the domination OF great combi.
nations, whose policy has distinctly
been to sustain values in spite of de-
clining demand This wholesale Ell
fort to check the operations OF
natural law marks a new and haZafd-
GUS tendency in business affairs. In
previous panics the trusts had not at
tanned such power over the markets
as they now possess, and prices were
left to adjust themselves in accord
anee With inc fluctuations Of supply
and demand. While this may have
caused occasional dissatisfaction, 1t
was in the main beneficial: because
il was the true course for readjas--
ment aud afforded buyers chance
al exercising individual Judgment.
Now conditions are completely
changed, and prices Of many com
modltles are held at or near the old
figures regardless of ordinary market
conditions aud the necessity for com
mercial as well as financial liquida-
ton. AS a result of the panic, there
las been a sharp contraction In the
demand for many articles. New en-
terprises have been checked; many
hands are out OF employment and
consumption has consequently de-
clined quite sharply. Under natural
conditions prices owuld be reduced at
such times in order TO revive demand
end encourage resumption of enter
prise through diminished costs of
production. Today, however the full
resumption of business activity is
positively retarded by the obstinate
refusal of the trusts whether of capt.
tai or labor to adjust themselves to
the changed conditions. For the first
time in our history. we are seeing how
the trust system works under adver-
sity. Trust managers have acquired
great power which. it used indiscreet-
Iy and to resist the natural action and
reaction of economic forces. will be
sure to invite further disaster sooner
or later. III used disereetly. II would
permit a gradual decline: and in In
dustries where competitive conditions
still remain, prices have already been
lowered considerably. There are.
however other industries. notably
steel. in which prices are held at old
figures in spite of decreased costs of
production. This means that many
are idle and many laborers out OF en-
ployment that otherwise would be ac-
lively engaged were prices reduced to
lower level: all because officials.
for reasons best known to them
selves. refuse to recognize the change
IN fundamental conditions.
In the stock market a fair degree OF
activity prevails. Transactions were
somewhat limited by the holiday: also
by the disposition to await results Of
the city bond sale. Conditions for the
latter we're more favorable than at
the time Of the previous issue in Sep
TENDER: not only Is money much
easier and more plentiful, but con
fdehce Is stronger and for some
weeks past there has been a good
demand for high-class bonds. A good
deal Of criticism has been heard as
"a the enormous borrowings of New
i vi fsss.~ To- rrtsrl, ff.oS,a l. mora ~