The Cairo bulletin., 1908-01-20

New York, Jan. 8.-Special--The
stock market has now enjoyed a re,
coyery of from 10 to 20 points in the
active shares and a still further all.
vance in some Of the specialties. 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
by an advance of considerable dura-
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 recess.
sions. 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 a too
rapid transformation of capital from
liquid into fixed forms The storm
which began in October has, however,
immensely clarified the financial situa
ticn. 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 |
gradually conquered. The most en- ,
couraging 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 rather too violent |
recovery and accompanying imitation;
especially as lower prices for securi |
ties and commodities have in effect |
increased the available sup I
ply Of funds. It is somewhat fortu-
nate, therefore, that counter-demands
such as the withdrawal of public de.
to ffgfn
reserves, retirement of clearing house
certificates, etc. have interviewed to
prevent an undue surplus of idle
money
Another preventive of the latter is
likely to be the renewed demand for
capital by railroads and other cor.
porations which We're Obliged to de.
fer their requirements until more
period. The latter are
quite important and will probably de.
velop during the next few months.
very significant feature was the
placing of s30,000000 New
York Central notes. The rapidity with
which these were taken demonstrates
here lisa good demand from investors
Tor 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
PAST. This demand is now extending
o securities Of the next grade.
A great deal is being made of the
'ery poor railroad earnings now being
made public. Nearly all of the roads
ire reporting large decreases in both
ross and net. 1t is also said that 10
yer cent of the freight cars in the
United States are out of employment.
here is nothing astonishing in this
he railroads are simply rejecting the
fleet of the panic upon traffic. There
vas unquestionably a sharp shrink
ge in business in November and De.
ember, resulting from financial de-
ression. As the latter disappears
rade and traffic will corresponding
7 recover, and the losses reported
Or the last two months are not likely !,
D be continued during the current ,
ear. A moderate shrinkage in earn !
Ae9 may IfihdBS We itdSOIdDlN look u
d for; but by means of economies
ihich are rapidly being put into eff !
sct, the decreases in net results ought +
OF to be seriously impaired The
Street" is fully reconciled to a re-
uction of dividends, especially among
he high rate payers. and railroad
managers may consider ii good policy h
} be more conservative in the matter II
+ dividends and to keep the latter in e
loser accord with market values Il
With the prospects of comparatively n
asy rates for money. many good Sc q
urities will prove desirable purchases n
t fair recessions from present fig
res. even allowing for such dividend a
as may be reasonably cal y
ulated upon.
One Ct the most satisfactory fea-
lres is the Improvement in the for
ign monetary outlook The Bank OF =
,ngland rate was reduced to ; perl '
ent and may go lower; the rate of :
he Bank of France is noy 31k perl :
ent and the Bank of Germany 6K
ct cent. These evidences of return