The Cairo bulletin., 1910-06-13

/,
and facilitate more normal conditions
lin our foreign trade. Already imports
are declinig and exports increasing as
! the result of lower prices; and the
! drift Of our foreign trade which has so
!, long been abnormal and unfavorable
! Is returning to the normel. Nor is
there any likelihood of an early re,
turn to recent conditions. Europe also
is being favored with large crops,
which will tend to keep down food
prices abroad, and prevent injurious
upward manipulation in American
markets, Dnaso TIC worst features
for some time past has ben the posi-
tion of orr foreign commerce.; a sit
uation which impressed Europe much
more unfavorably than ii did our.
selves. For long period European
bankers viewed the tendencies here
with uneasincss, and our credit abroad
+, was undoubtedly impaired by our in
ability to pay for imports with mer,
chandise rather than gold The
change In tendencies which is now
taking place is fundamental and
| Strengthening. AS soon as Europe
| sees that we are in a position to re-
| tain our gold and ship produce in.
stead our credit abroad will rise and
the effect must be beneficial to our
selves. Should we require gold next
auaumn, as is probable, we will have
no difficulty in drawing the same. The
great European banks have all been
|aecumulating supply of the precious
Smetal and indications are that we will
lbe able to build up our gold reserves
during the coming fall and winter.
Correction Going On.
| This later fact is important mas
much as there had been more or less
apprehension of severe stringency in
the American markets as soon as the
crop season is fairly under way This
possibility was recognized by western
bankers who have been applying the
brakes and enforcing liquidation in
grain and provisions. It is thus seen
! that corrective influences have been
steadily at work. The cure was I'M
pheasant, but it is working beneficially
and as a result the situation is much
better than at any time for several
monhs. Security values are now ex
ceedingly low; many stocks are sell
ling on per cent basis; weak spots
have been thoroughly eliminated; the
short interest is large enough to be
an element Of strength the outlook
is for easy money until the autumn
the prospects Of strngency then have
been materially moderated by recent
liquidation; the situation abroad Is
again becoming more favorable for
! American investments; hysteria Is
abatng and all things considered the
outlook is for better, though some
hat nervous and irregular market.
| Much will depend upon the crops, II
these prove satisfactory, the stock
market will be benefited accordingly.
Finally, the railroad situation has
, seen its worst phase, and President
! Taft has unquestionably regained
much of his thaetened prestige b.
7 forcing congressional action upon the
railroad question There is no doubt
that the railroads vii secure fair treat
ment under the Interstate Commerce
Commission, and that If necessary
, they viii be allowed a moderate ad.
vance in rates. Conditions are favor
able to a good trading market, with
the crops as the leading influence, and
the railroad situation will soon be,
come a secondary factor,
! HENRY CLEWS.