The Cairo bulletin., 1910-12-19

fetal 1t has checked pace that was
altogether too rapid, and has facili-
tated the restoration Of equilibrium
which may pave the way for fresh
activity later on.
Values Inflated.
The feeling Is still abroad that
values generally are upon an inflated
basis. Tnis may be true of coImno-
| dities, but not OF securities, whicn
are now selling considerably below
high levels. As to commodities, some
reaction has already set in, prtaicu-
lafly in food products; and the re-
cession there nut ultimately result
in a partially reduced cost of living.
AS yet, however, these reductions
have not reached TIE consumer large
" because middlemen are endeavor-
ing to maintain their old scale Of
profit as long as possible The most
! serious problem which producers
have to face is the high cost ele-
nents How this n to be reduced, Is
a problem vet to be solved. Some ie-
lduction may he mad In raw materials,
but this win not be sufficient, and
| cannot offset the greatly increased
cost OF wages and the advances in
rents, taxes, etc The best solution
would appear TO be In securing more
efficiency in labor. Wages have
risen, hours have been shortened and
output restricted until these factors
| have been a very serious element in
Increased costs. Under present con.
ilitons it is almost impossible TO ask
| labor to accept lower wages Labor
, however, can materially reAeve the
situation to it's own advantage by en-
! couraging a policy of greater eff
i cheney and larger production. Labor
| is after all the chief consumer, and
while insisting upon advanced wages,
has been unconsciously diminishing
the purchasing power of its wages
and increasing it's own cost OF living.
Business is Quiet.
As the year draws tosa close gem
eral business is quiet in nearly all de-
partments. Fortunately there are nc
serious indications or rnsound condi-
tons. At the west some financial
strain is reported, the lower prices
for farm products having induced
farmers to hold back supplies, but in
this there is nothing serious The
{ south continues prosperous, owing to
the large profits OF cotton growing;
and the country as whole shows the
! activity and energy inevitable with a
| rapid-growing population. The east
), IL still decidedly pessimistic, while
1.-THE west maintains it's characteristic
caily optimistic attitude. The true
course probably lies between the two
! extremes. Our iron trade, usually
| considered the best barometer, con-
tinres unduly depressed ana is run
| ming only about half it's capacity. This
state OF affairs is due to the inabi-
| ity OF the railroads to raise funds
/ Should they succeed in placing con
templated issues, and SHOULD the in.
tarstate commerce commission allow
/ some reasonable advances, the pros
4 poets are that the situation will soon
/ be relieved and that the railroads,
1.-THE largest buyers of iron and steel,
| viii once more place their orders fo'
construction and equipment with Gus
| tomary freedom, # much longer de
layed rush of orders must follow, II
only to fill the vacuum created by
/ long postponement. The immediate
4 outlook of the stock market Is en-
| couraging rather than otherwise. Az
for the more distant future, that ear
be more accurately gagged when we
Lave fairly entered the new year.
HENRY CLEWS.