The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-01-20

| new YORK, Jan, S.-Speclal,-Tht
stock market has now enjoyed a re
coyery of from 10 to 20 points in the
active shares and still further AL
vance in some of the specialtes. As
explained in our previous adyices, this
was the natural sequence of improve
ment in the monetary situation and
the uncovering of a large short in
terest All panics have ben followed
ton, setting in usually as son as the
disturbance to monetary conditions
subsidies. The period of recovery gen
orally varies, eXtneding over several
months and accompanied by more Of
less irregularity and occasional reces-
lsions. The present recovery has been
exceedingly rapid and somewhat cor
responds to the suddeness and sever.
| ity of the panic itself The fact that
recuperation has been so prompt and
energetic demonstrates that the crisis
revealed no unsound or grave disturb
ance in general conditions. The panic
was chilly financial, and mainly due to
the gross abuse of credit and too
rapid transformation of capital from
liquid into fixed forms The storm
which began in October has, however,
immensely clarified the financial situa.
tion. Confidence is reviving at
rapid rate; money is coming out of
boarding; currency is returning in
large volume from the interior; bank
reserves are rising with unexpected
rapidity and the whole tendency of
existing forces is toward recuperation
The patient is still somewhat reduced
by past excuses, but his constitu-
ton has not been impaired; strength
is returning and the disease is being
conquered. The most en-
feature is the growing ease
in money, and the very pronounced
Improvement in the credit situation;
the latter a very vital matter in com
mercial affairs. In view of the large
additions to our currency supply and
the nations stock of gold, we might
be in danger of a rather too violent
recovery and accompanying imitation; |
especially as lower prices for securi-
ties and commodities have in effect
increased the available sup
ply of funds. II is somewhat fortu- |
nate. therefore, that counter-demands, |
such as the withdrawal Of public de- |
posts, provision for trust company /
reserves, retirement OF clearing house |
certificates, etc, have interviewed to |
prevent an undue surplus of idle |
Another preventive of the latter is |
likely to be the renewed demand for
capital by railroads and other cor
Dorations which We're obliged to de-
Ter their requirements until more !
period. The latter are
quite important and will probably de.
lelop during the next few months.
\ very significant feature was the
placing of $3O,OO0,0O0 New
York Central notes. The rapidity with
which these were taken demonstrates
here lisa good demand from investors
or high class securities. In fact, the
demand for good bonds Of all descrip-
ions has been one of the most en-
features for several weeks
'ast This demand is now extending
o securities of the next grade.
A great deal is being made of the
cry poor railroad earnings now being
nade public. Nearly all of the roads
re reporting large decreases in both
ross and net. 1t is also said that 10
er cent of the freight cars in the
lnited States are out of employment
here is nothing astonishing in this.
he railroads are simply rejecting the
fleet of the panic upon traffic. There
'as unquestionably a sharp shrink
&c in business in November and De
ember, resulting from financial de-
ression. AS the latter disappears
'ade and traffic will corresponding
recover, and the losses reported
)r the last two months are not likely
W tohAliutu HuilnS the tuTTtnJ
ear. A moderate shrinkage in earn
lgs may perhaps be reasonably look
i for; but by means of economies
'hich are rapidly being put into eff.
3ct. the decreases in net results ought
OF to be seriously impaired. The
Street is fully reconciled to a re-
nction of dividends. especially among
ne high rate payers. and railroad
may consider it good policy
be more conservative in the matter !
dividends and to keep the latter in c
loser accord with market values. !
Nth the prospects of comparatively
lsy rates for money. many good Sc
1rities will prove desirable purchases ]
fair recessions from present fig
res, even allowing for such dividend
'ductions as may be reasonably cal
llated upon.
One Ct the most satisfactory fea-
Tres is the Improvement in the for.
Ign monetary outlook. The Bank of
ngland rate was reduced to per /,
mt and may 90 lower: the rate of
he Bank of France is noy 3H perl
INT and the Bank of Germany 6h :
er cent. These evidences of return !.
* ease abroad show that apprehen-l :