The Cairo bulletin., 1909-12-27

ual commodities which are uniustifi-
ably high, but weighing the situation
from the large point of view there is
little reason to anticipate any import
ant recessions in the price level for
for time to come. On the contrary,
the indications point to continuance
of the upward trend, and in all prob.
ability the coming year will be one of
large business ann even higher prices
with OF course the usual temporary
reactions.
1t is not unreasonable, however, to
look for lower prices for food
products. inasmuch as the relatively
short crops of last year and their high
prices would stimulate efforts for a
big production in 1910. Should we
have average crop weather in 1910 it
is reasonable to expect that he prices
of food products next year will be
materially lower than they have been
in the past thus affording relief
against the frequent complaints about
the high cost Of living. Flour has al
ready declined from the high prices OF
last summer, and before long it is
confidently expected that the price OF
meat will drop from its present high
level as result of increased produc,
ton
Money Situation Setter.
The monetary situation is reason.
ably assuring Some slight furry may
be looked for in the last week of the
year owing to preparations for Jan
uary disbursements, but this is not a
serious matter. and after the middle
of January when crop funds should
begin to return from the interior we
may look for still easier conditions.
The period of cheap money, however,
has passed, owing to the activity of
trade and to high prices which ab.
sorb money freely. 1t is useless to
expect low rates for some time to
come, and the west may not return
funds as freely as usual keeping them
at home for its own use Bank re-
serves are still low. and the tendency
for undue expansion of credit is
something that will require watching
The condition Of our foreign trade re.
mains unsatisfactory because OF rel.
atively small exports and large i'm.
ports, Possibly we may be able to
ship securities more freely in settle.
ment of our foreign Indebtedness,
which must be considerable
Foreign Situation.
The monetary situation abroad is
not entirely comfortable. In England
the approach of a general election in
January causes some uneasiness in
banking circles, and capital in France
shrinks from the growth of socialism.
In Germany there has been a marked
recovery, and that country promises
to soon become a much more import
ant factor in the international com
mercial affairs, but in that country
also bankers and capitalists are feel
ing the burdens of miitarism and so
sialism.
As stated above, the local outlook
is one that justiiies confidence
Liquidation may be expected in a
few of the high priced stocks which
have been discounting dividend in
creases, but January may see a con
certed movement for the rise, aided
by the support of big banking inter.
ests who will be obliged to MAKE a
market for their new Rotations
There is still some anxiety as to what
President Tafts policy towards the
railroads viii he; and the Interstate
Commerce Commissions request for
more power is not taken kindly. The
latter's proposal to place valuation
upon American railroads is absurd
and impracticable.
EIENPY CIEWS