The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-06-06

q lHS ltCuHS tIldt Sldi u iiNttud-
ton must take place here and a
lower level for commodities as well
as securities be estaglished before
European confidence in the United
States can be restored. Such liquida-
ton is now in progress, in fact has
already run to a very considerable eX-
tent Wheat and cotton have shown
marked declines, and the tendency is
for still lower prices. Commodities
generally are declining. Unsatisfac-
tory as this may be to those operat ne
for the rise, the country will uti-
mately be benefited, and the cost Of
living will decline. Both wheat and
cotton will so outward more freely
and save us from the alternative OF
a further depletion in our gold sup
ply. The situation has already been
materially relieved by this unpleasant
but curative process.
Crop Situation.
Our crop situation is fairly satisfac-
tory. The outlook is for a full crop
of cotton, and wheat promises we'll.
The prospect is also for a big hay
crop. The growing season Is from
two to three weeks late, which some-
what increase the peril from early
frosts, still there is ample time for
recovery of lost ground, and it would
be premature to take dis
couraging views Of the present
crop situation. Other favorable in
fiuences are the successful placing
of st. Paul bonds and city warrants
in Paris, the decline in the Bank of
England rate, a good cotton report
and sharp decline in imports which
with lower prices for wheat and cot
ton and foreign takings of our securi.
ties will Interfere with further gold
exports. 1t sesm quite certain that
Europe will take our best securities
at price, and present conditions
seem unusually favorable to the for
eign purchaser
General business is affected adj.
versely by the reaction in Wall street,
as well as by a general recognition
that we are passing through a period
of reimbursement from the late &C
tivity and excessively high prices.
Economy is already taking the place
of extravaganza. Buyers naturally
hesitate under such circumstances,
although thus far there has been no
serious sackening up of trade
Rather more activity has been shown
in iron, owing to price concessions,
but the future of this industry is
largely dependent upon the railroad
outlook; equipment orders are being
cancelled, and new purchases of steel
products are undoubtedly contingent
upon the successful placing of Ameri.
can railroad bonds abroad. Delay in
the latter will necessarily influence
the steel industry unfavorably
Outlook Uncertain.
The outlook for the market is ex
ceedlngly uncertain. Political Condi-
tons are unfayorable, and the coun-
try is threatened with a growing an
ti-railroad and anti.tariff agitation for
some time to come. Political leaders
are awaiting the return of Mr.. Roose
welt, Financial leaders may do like.
wise, While there is no question
that the general situation Is being i'm
proved by liquidation and security
values have already partially discount
ed the adverse conditions above re.
terred to; the purchases Of stocks,
except on the breaks, cannot be safe
ly recommended until conditions be
come more settled. In view of the
oversold condition of the market
there will doubtless be sharp aid lib
eral rallies, but we still continue to
suggest profit taking upon any pro
nounced recovery No pedrmahent
turn for the better can be expected
until Improvement in both political
and monetary situations is in sight
HENRY CLEWS.