The Cairo bulletin., 1910-07-18

tend to mitigate any undue string
ency, The New York banks are now
in better position to afford assis-
lance to the interior, ami our ability
to secure further assistance from
abroad is also unquestionable Cool
imports have commenced earlier than
expected, and the prospects are for
considerable influx of the precious
metal during the coming autumn.
Money abroad is easy and vita the
declining tendency of American inn
ports and tie practically assured
revival of exports, our ability to draw
gold from London vii rest upon nat
ural rather than artificial sauses. In
the first six month of 1910 the Lon
don market took about $4,000 900
of our new securities, which looks
as if Europe had more confidence in
them than we ourselves Altogether
the financial situation is distinctly
more satisfactory than three months
ago.
Economy The Order,
The general business situation is
not unsatisfactory. Reactionary ten
denotes multiply, and the liquidation
which mas taken placeon the Stock
Exchange is now extending to the
commodit ymarkets. Economy is be-
coming the order of the day, having
been rendered imperative by the eX-
travagance which has perneated all
classes of consumers for some years
past. What with automobiles and
other inordinate indulgences, the buy.
ing power of many people abs been
at least temporarily, Impaired, A per
iod OF rest is needed for recuperation.
A good many failures have t1te1
place during the past six months. and
more are to be anticipated. Lower
prices for commodities, however, and
time for regeneration will gradually
, work out better and sounder situa
ton. Labor is still generally employ
ed and securing good wages; so thai
there should be no serious abate
ment in the consumption of necessi
ties. LuXures only should suffer
Should the crops turn out satisfactor
lily, and SHOULD the country escap'
any unfayorable political develop
ments, we may look for a resumption
of trade activity next fall and winter
, disappointment, however, in eitne
! of these respects iwoull iuevisably
affect trade iniouriously; hence ;
period OF caution and waiting l.
necessary until the possible outcome
of these elements can be fairly est
mated
Securities Good Investment
, The outlook for the stock marke
! is still somewhat confused. Securi
f! ties during the last six months nav,
undergone tremendous shrnkage
discounting in advance the depres
sion in trade and industry which j
now foresoen. The stock exchang
| always discounts such conditions il
advance, and then starts out to al
ticipate business improvements Will
business is still passing through til
midst Of depression one reason 70
! such an anomaly is that money a
one time required for legitimate bus
mess operations subsequently find
more profitable employment in chea
securities, For investors the presen
is unquestionably an attractive oppot
tunity because many sound diyiden
payers are selling below intrinsic va
ues, considering monetary conditions
But caution must still be used in a
speculative operations. Though ell
ments of panic may be entirely lacl
ing, confidence has received har
, blows, and the weak spots have NJ
| yet been entirely eliminated. Thel
, Is a bear party also Of considerab
: influence which might succeed
: forcing the market lower, though
might also prove an element {
: strength in event of forced recover.
Z A conservative policy therefore,
= still the only one to he followed an
, the prudent operator viii be Statistic
for the time being with moderat
, profits. HENRY CLEWS