The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-06-01

Special.
New York, May 20. 190S.-The stool
market has been suffering from over
exertion. Strenuous efforts Were
made to lift prices to the highes
level possible by driving out the shor
interest, and the result was a pres
sure to take profits that brought
about more severe reaction thar
was expected. The late rise was be
You'd all reason for prices had beer
carried not only above the pre.panit
level but also above those prevailing
last summer: and in face of a yer,
serious decline in railroad traffic. A
year ago business was extremely ac
tive and the panic generally unex
pected. Now, we have fallen to /
considerably lower lyel for all values
business has shrunk greatly in vol
ume, and the railroads are threatened
with a reduction of dividends.
Crops important Factor.
From almost every point of view
the late advance was EXCESSIVE: and
as was recently stated in these adj
vices, a. sharp reaction was sure to
follow any unfavorable news of suf-
fielent Importance to start a fresh
selling movement This came first in
the form of unfayorable crop news,
then in the anti-merger suit of the
government against the New York,
New Haven IL Hartford railroad, and
finally in the uncertainty of congress.
sional action upon the currency sys-
tenn. All of these developments were
distinctly unfayorable Probably no
great harm has befallen any of the
growing crops, but recovery from
present business depression is so
closely dependent upon a good har-
vest that the security markets are
and viii be during the coming sum
mer, particularly sensitive to crop
news. A poor harvest would be moth
country; in fact we need not merely
one good harvest, but additional
bouLtiful ones to infuse fresh life in
to business, and to give us a moderate
surplus of agricultural products that
would aid in bringing down the pres
ent high cost Nof food. AS has often
been stated, prosperity lies in moder-
ate abundance, and not in scarcity.
For some years past there has been
a relative shortage In the supply of
nearly all agricultural products, a
condition largely responsible for
present high cost of living among the
A big harvest therefore
would be Il blessing; for food pro-
ducts would decline, the consumer
would have more to spend in every
direction and the farmers larger out
put would more than compensate for
lower prices.
Weak Grounded Suit.
The suit of the government against
the New York, New Haven & Hart
ford railroad appears to have been
an ill-time and injudicious step. The
suit itself is not based upon strong
grounds, and should the government
be defeated the loss of prestige would
be distinct setback to the anti-mer-
ger movement. Nor is this all. The
fiction, and Massachusetts already
has the matter yell under considera-
ton; so that this over-zealous action
on the part of the government is like
y to confuse and delay, rather than
10 accelerate a just solution of the
problem. The announcement of the
5000, 100000 Chicago, Burlington &
Quincy loan caused the Street" to
pause somewhat; for while only S16,-
300, 600 We're issued for immediate
purposes there was much conjecture
as to what was the ultimate purpose
In authorizing so huge loan: the
biggest railroad bond issue on record.
4 very large portion of this issue was
for refunding purposes.
Nevertheless, there IS a big remainder
If considerably over 100000. 900, the
Use of which is open to surmise. This
places the road in position to COM
nand a large amount of capital for
development, and to place the Hill
ines in a position for meeting the
competition of the Hartman Trans
atlantic systems operating in the
south. OF course, this new capital is
'equired for development of roads
to the North Pacific Coast.
md shows an encouraging degree of
confidence on the part of our great
'ailroad managers in the future of
hat rich and undeveloped section
Congress Was Puzzle.
Another element of disturbance was
he uncertainty as to what congress
would do on the currency question
nntil the Aldrich-Vreeland compro.
mise bill was passed on Wednesday.
Congress seems likely to please no
body but itself. Those who wish
reform on sound. scientific
and well established lines. will, of
course. be much discouraged: and
those who wished simply an emerg-
ency bin to protect the money market
from manipulation until some legis-
yation could be obtained were tenn
porarily Disconnected by a week of