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

vices are that this will have little
effect abroad since all arrangements
are we'll advanced if not completed.
Considerations such as those are hay
ing their effect upon interest rates in
all parts of the world; and, as pre-
viously intimated in these advices, we
have turned the corner as regards
cheap money. The accumulation OF
idle funds following the panic has
reached its elimination, and the slim
ulating effect of low rates of inter
est is being widely felt in revivins
trade and renewed demand for mon
cy. Our own bank statement certainly
reflects this tendency in a striking
manner. Reserves of the Associated
Banws have fallen from $63,S0o,000 on
August %, the high water mark,to
$34, 10000 on October TO- drop OF
$29.1OO. 900 in seven weeks. 1t is also
worth noting that loans stood at the
record figure of $1.3240o0,000 last
week, compared with $10S3, 100000 a
year ago, an increase of 100000, or
nearly 25 per cent. II is we'll to pause
and consider what has been the cause
of this extraordinary expansion Of
loans in a time of acute business de
preston. and when all Legitimate de
mands for money were at minimum.
The tendency of business conditions
is still towards slow improvement In
the farming districts of the West there
is much more optimism than else
where, owing to the unprecedented
prosperity of the farmers, many Of
whom are getting 60 cents and Over
for their corn and securing profits 80
to 100 per cent better than before.
Farmers who rise cattle and hogs are
also making handsome returns, henae
automobiles, pianos. telephones, etc,
are in good demand in the grain bel.
This state of affairs will be an import
ant aid to business revival, especially
lin the West. In the South content
ment and prosperity are not so pre-
yalent for cotton has declined con
sidera9y and growers are making
strenuous efforts to sustain prices.
AS we approach industrial centers
and the great business cities more
sober views are encountered. There
the depression has been keenest, and
there the recovery is slowest. Stu
conditions are lettering; railroad traf'
fic shows distinct Improvement, and
managers are in vastly better spirits
than three months ago. There are duh
spots here and there; also quiet spells
in the markets which disappoint those
who expect too much. Suffice to say,
conditions are improving, and that It
is better that progress be slow and
sure than rapid and reactionary. Con
trasting the situation with a year ago,
the recovery already established has
been remarkable.
Technical conditions leave the mar
ket in a somewhat unsettled state.
Stocks are strongly supported because
the big holders have not yet sufficient
Is nghtened their load The fact re-
mains that many stocks are high in
view of geenral conditions. and that
rising interest rates will tend to d.
minish rather than increase their val
ue. How long the powerful cliques
who now rule the market will be able
10 defy natural in0ences no one can
say. It is quite possible that they
may be able To push prices to a still
higher level and cretate temporary
speculative furorc, especially should
the results o fthc election be satisiac
tory But until artificial regulation OF
the market disappears stocks should
be brought with discrimination. at
least until the danger Of political dis
appointment is passed.
HENRY CIEWS