The Cairo bulletin., 1910-07-11

New York, July 9.-The country is
still passing through process OF
reimbursement rendered necessary by
an unusually long period of activity
prosperity and extravaganza. Reac'
ltion was inevitable when the upward
movement had exhausted itself; the
point of exhaustion being marked by
weakening of the nations purchasing
power. For some time past 1t has
been self-evident that the latter stage
had been touched. Securities, uxur.
les and commodities had all reached
point beyond the power Of buyers
and reaction was unavoidable Fortu-
nately it has come without any smyp-
toms of panic. There are many rea'
sons for recent declines; none OF
which, however, would have been SC
lpotent as they have been had it not
been that the time was ripe for re-
adjustment. The reaction was unwel
come, as all such movements are
being accompanied by more or less
depression, and symptoms Of politi-
cal irritation The truth is that UNI
DERIVING conditions rendered return
to lower and more stable levels i'm
peratiye. The gun was well loaded,
and only some unfavorable develop
ment was necessary for pulling the
trigger.
UnfavorabIe Incidents.
There has been a succession Of
Iunfavorable incidents. The agrees
i've attitude of the Government, and
a somewhat disturbing political out
look being, perhaps, the most dis
turbing elements in financial circles.
These developments have been fol
lowed by not altogether satisfactory
crop outlook also by apprehensions
of monetary stringency in the fall
arising from an over-eXtension of
credit by Western banks on account
Of land speculation. Over $1,04a,a00,-
the past six months, and at time OF
lessened buying power, compared
with $S60,000,000 the same time in
1909 There are' indications, too
that the present reaction will so be-
yond Wall Street. Business gener-
ally is undergoing a setback. Bust.
20 Ia fire ITO he
Of 1919 aggregated $112,000,000, com.
pared with SSS,0000 00 same time last
year Bank clearings throughout the
country are running below a year
ago, Railroad expenses are often in.
creasing more rapidly than earnings
with consequently unpleasant losses
in net In the iron trade. the produc,
ton of pig iron is already running
ahead of consumption and prices OF
steel products generally show a down
ward tendency. In cotton goods the
production is being curtailed fully
| so per cent, and similar shutdown
| IS also reported in the WOODEN and
/ slIh lluuAltito. ut bNtI 'DIbuutii1i
of copper continues in spite OF lower
prices and somewhat increased
| consumption; the prospects Of regu
lating the product are still as indef
mite as ever The tendency of connie
dities downward in the wholesale MAJ
kets though in time this should
cheaper costs to consumers and thus
somewhat reduce the cost of living
AS to how far the business reaction
will 90, 1T is impossible to determine
but the Indications are for quie
summer, and the prudent merchant
will conserve his resources and pave
| the way for fresh forward move
ment upon lower and more substan
tial basis when the time for recovery
arrives.
| On the Bright Side.
| This Is the dark side of the picture
Fortunately there is also brighte
side, The most encouraging factor
y B.