The Cairo bulletin., 1908-02-17
Special

Special.
On the stock exchange during tn
week there We're number of impor
ant fluctuations which contribute
more or less activity in special stock.
but q comparatively quiet market /
others. The recent panic, howeye
If gradually becoming a matter &
history, and its effects In the financia
Idistrict are disappearing by degrees
i confidence has certainly recoyere
considerably and the money marke
mas settled down into more norma
conditions. Loanable funds on goo
collateral are plentiful, and good boz
rowers find no difficulty In securin,
iall the accommodation they need a
| comparatively low rates.
The relief developed in the none,
| market has been the result of unim
peded workings Of natural forces. i
can safely be said that REIMBURSEMENT
IN the money market mas been more
complete, MS well as more rapid than
in any other department. of business
This Is important because it paves
the way for readjustment elsewhere.
We are still descending from an alb
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 decline in the rates for
money There has been some con
certed opposisition to the decline In
stocks, but beyond the effort to check
the panic there was nothing remark
able to interfere with the readjust-
nent in securities In the main the
stock market has yielded to natura;
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
tries. (which are not more or less
lnder the domination OF great comb
nations, whose policy has distinctly
been to sustain values in spite Of de.
dining demand. This wholesale ell
'ort to check the operations Of
natural law marks a new and hazard
ms tendency In business affairs. In
lrevlots panlcs the trasts had not at |
aimed such power over the markets |
II they now possess, and prices were |
eft to adjust themselves IN accord |
nee with the fluctuations OF supply |
nd demand. While this may have /
auscd occasional dissatisfaction, it I
vas in the main beneficial: because
was the true course for readms-'
nent and afforded buyers chance
/ exercising individual Judgment,
low conditions are completely
hanged, and prices Of many com
CURES regardless of ordinary market
and the necessity for com
lercial as well as financial liquida-
on. As result of the panic, there
as been a sharp contraction in the
emand for many articles. New en-
,rprises have been checked; many II
ands are out OF employment and
assumption has consequently de- II
ined quite sharply. Under natural
)nditions prices owuld be reduced at {
leh times i'm order TO revive demand (
ld encourage resumption of enter 1
Use through diminished costs of c
'oduction. Today. however the full \
of business activity is [
retarded by the obstinate q
fusal of the trusts whether of capt {
| or labor to adjust themselves TO v
q changed conditions. For the first
ne in our history we are seeing how
e trust system works under adver-
~. Trust managers have acquired
cat power which. it used indiscFeet-l
and TO resist the natural action and a
action of economic forces. will be q
re to invite further disaster sooner c
later. If used discreetly, IL would o
rmit a gradual decline: and in in ?
stries where competitive conditions y
II remain, prices have already been u
yered considerably. There are. L
viewer, other industries. notably
eel. in which prices are held at old
ures in spite of decreased costs of
oducticn. This means that many s
2 idle and many laborers out Of EN- h
,ymeut that otherwise would be ae- h
ely engaged were prices reduced to h
lower level: all because officials. J d
reasons best known to them q
YES. refuse to recognize the change a
fundamental conditions.
IN the stock market a fair degree oil
ivity prevails. Transactions were r
newhat limited by the holiday: also
the disposition to await results of
: city bond sale. Conditions for the
ter were more favorable than at In
: time of the previous issue in Sep IN
nber; not only Is money much ids
;ier and more plentiful. but con tn
ance is stronger and for some "
eks past there has been a good of
nand for high-class bonds. A good tr
I Of criticism has been heard as ty
the enormous borrowings of New III