The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-08-22
New York. Aug. 20. 1910.


We are now in a stage of the year
when conditions are least favorable
to activity. 1t is vacation time, and
the number of absentees is large
Our harvest still possesses some un-
certainties, and it Is the period be-
tween seasons when commercial OPP
erations are generally at a minimum.
Such conditions are, of course, not
calculated to stimulate activity.
Nevertheless, the tendencies are to-
wards improvement, and tn inrta
which now exists in business world
IS what was most needed to permit
OF REIMBURSEMENT and lay the basis for
la fresh recovery later on.
Monetary Situation Better.
The greatest betterment has been
In the monetary situation Owing to
recent pressure eXerted by banks in
all parts OF the country, prospects
of money squeeze this autumn
which once caused considerable APP
prehension have now been reduced
to minimum. At worst there is no
thing to be feared except possibly
local and temporary stringency when
the crops move. The Eastern banks
have greatly strengthened their re-
sources. and will be abundantly able
to meet any interior demands. Liz
uidation has also materially trength-
ened the interior. The surplus re-
serve of the New York banks is now
over $55,000,000, having shown a re-
markable rise in the past five or six
weeks. We nave already imported
about $2o,000,000 of gold, which has
proved sufficient, although only half
of the $40,000,00O which it was anti
cipated would be required a few
weeks ago. The improvement in the
local banking situation has been so
pronounced as to discourage further
gold imports. unless there be a sud
den and unexpected increase in mer
chandise exports. Bankers are now
pursuing more liberal policy toward
their customers, and the demand for
commercial paper has corresponding
ly improved. AS business operations
had previously been materially cur
tailed through pressure from banking
sources, the relief in the latter quar-
ter should in due time make itself
manifest in greater business activity.
Buyers have been pursuing hand-to.
mouth policy, and many establish
ments in the iron, textile, leather and
other industries have been obligd to
NATURALLY reduce their output. 1t is
recognized that the whole country
has entered a stage of over-produc-
ton, which is due partly to dmin-
ished purchasing power, and ppartly
to an excessive enlargement of pro
ducing capacity This readjustmen.
between production and consump
ton, or supply and demand, cannot
be Immediately accomplished, but the
evil is fully recognized and the cura-
tive process is now fully under way
AS already said, the rest cure is
working out financial results and is
likely, as of old, to prove the best re-
storative known.
The Political Situation.
Some uneasiness is felt regarding
the political situation; but it must
be remembered that the actual eff
feet of politics upon business Is gen
orally less in fact tnan in sentiment
When economic conditions become
sounder, business will promptly rally
with comparatively little regard to
politics. Our foreign trade, through
showing very satisfactory results for
the entire year Is at last giving signs
of return to the normal Though i'm
ports continue very heavy, amount
ing to $11700,00o in July, or nearly
S., 100000 in excess of last year, ex.
ports reached s114500,000 or little
more than $5,000,000 in excess of the