The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-08-01


Tine breakdown of a speculative
Clique, which sought to link up a
series of disconnected lines into a
new eranscontinentai system, proved
to be at the bottom of the collapse
in values which occurred in Mondays
and Tuesdays market The taking
over of these securities by strong
international banking syndicate UNI
ouestionably saved the market from
a worse srash, and produced a radical
change for the better in the technical
situation. As soon as the facts be-
came known liquidation ceased, and a
sharp rebound followed which was
was materially accelerated by a rush
to cover outstanding shorts, The
extreme pessimism bred by the my
sterious declines of last week sud-
denly disappeared and the whole mar
ket displayed a better and more
normal tone. Another consideration
which impaired better tone and
checked the growing wave Of pess-
imism was the report of the United
States Steel Co., which showed nand-
some profits for the past quarter and
smaller falling off in orders on hand
than was really anticipated As the
steel trade is still considered one of
the best industrial barometers, the eff
feet of this report was naturally slim
ulating.
Monetary Situation Better.
The monetary situation SHOWS fur
Their improvement. Local bank re-
sources continue to rise. and there is
much less Apprehension of severe
monetary stringency during the com
ing fall than at one time existed.
What with liquidation in stocks and
declining values in commodities and
securities, money goes much further
tnan six months ago, especially in
view of the shrinkage in volume OF
business and speculation. The last
statement of the nat 'onal banks may
have been unsatisfactory owing to
the small contraction in loans at the
but recently, farmers have been mar
keting their crops more freely and Ii
quidation from this and other sources
will probably result in a much better
showing for the interior banks when
the next call is issued Gold imports
continue on an increasing scale, ami
there is every indication that we will
command all Of tae precious metal
that we need, Europe's heavy invest
ments in our securities during the
past six months more than offset the
shrinkage in our foreign trade bal
ance The tendency in our foreign
trade is toward Improvement, be-
cause the decline in commodities
puts us upon more favorable ex-
port basis and tends to restrain i'm
portations. While some string6ncy
may be anticipated during the crop
season, there is much less danger of
a crisis in this respect than former
". Should any OF the bankers agree
to form currency associations that
will be a further protection against a
crisis, which. in view Of the inability
of the government to assist the mar
ket in an emergency would seem to
be a desirable alternative. No one
pretends that these associations are
final cure for cur currency evils
but they would at least prove an eff
fcent palliative until genuine cur
rency reform can be established.
The Crop Outlook.
The crop outlook Is not entirely sat
isfactory. The yield of wheat cot
ton and corn is likely to fall below
early calculations The loss in wheat
has already been amply discounted
and is not serious, Much deteriora-
ton, however, has taken place in
cotton, and the corn crop has like