The Cairo bulletin., 1908-07-06

Especial
New York, July 3.-The first sf
months of the year have closed. show
ing a degree of recovery from the DC
tober panic which fully equals, if MOI
surpasses all reasonable expectations
1t has been a period of somewhat
painful conyalescence. but the i'm
provement has been pronounced and
substantial and if sustained for the
Iremining six months of the year. will
go far toWad obliterating the effects
of last years disasters. OF course
there are many unsatisfactory fea,
lures still remaining; trade and in
dustry are restricted, and more or less
| disappointment and discomfort pre-
| vail in consequence. Unfortunately
1T cannot be said that the process Of
establishment is complete; contraction
| has been unduly severe in some direc-
tons. and very inadequate in others.
consequently the evening-up process
must still go on and additional time
viii be required before conditions are
restored to the normal On the other
hand, it is a matter of Generalization
that some very important danger
points have been safely passed:
political crisis has been averted: pub
Tie opinion is becoming more sane in
It's attitude toward corporations and
all indications point 10 the election of
MT. Taft as our next president, Bust
ness failures nave been much less
serious than at one time feared and
the credit situation shows vast i'm
proyement over year ago Finan.
cial institutions which fell under the
strain of the panic have mostly 70
sumed, and our banks are as a rule
now exceptionally strong. This does
not by any means complete the list of |
favorable developments. So much
liquidation and housekeeping have |
Iioa has been greatly clarified, a.
though frequently at the expense OF /
psses and difficulties which naturally |
cloud the vision of those upon whom
they have fallen with great severity |
A great deal Of the depression which |
now exists is confined to those who
have borne the brunt OF the panic.
Those who forcsaw its coming, AMI
trimmed their sails accordingly. are
IN a much more hopeful frame of
mind, and confidently look forward t.
a sure, if slow, approach of better
times.
Lots of Money.
Money IS a drug; both call and time
rates being excessively low. Our bank
reserves are piling up rapidly and
have now surpassed the record, touch
ng $40O000000, or $12O.000.O00 more
man a year ago. This plainly illus
rates the desirabilitv of an elastic
system, in which we are sad
y lacking, Our currency should now
Dc contracting because it is more
abundant than needed. Instead it is
at A time when not wanted
,ecarse regulated by the bond mar
iet rather than by the demands of
commerce and industry. As result
here is tendency to imitation which
6 apt to retard rather than accelerate
| healthy and permanent readiust-
nent to new conditions This over
of funds IS a more power
III element in the security market
han is generally appreciated Many
securities are now as high as a year
go, and this in the face of business
depression and shrinking dividends.
This can only be partly accounted for
~ the spirit of hopefumess. which
hows itself in holding securities for
,etter times which are sure to come.
If cheap money. many securities
would not probably be selling at their {
resent level The market leaders
iOwever, have unlimited funds at !
heir command at low rates. and are
n position to sustain the market
gainst all ordinary adverse inlr-
noes, Briefly, stocks are in strong
lands, the floating supply is light, !
iquidation has been thorough, weak
,oints have been thoroughly eliminat-
d. and the big men find little diff
ulty in supporting the market
gainst all attacks. The bear element
n the market is small and specula
ion is on a much more restricted !
Gale than usual, for no one cares to
art with stocks when believing that J
he worst is over. The technical
iostion is consequently a strong one
nd opposed TO lowcr prices; albeit
hat current developments are fire.