The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-01-16

credit; not to speak Of the .unwholG-
some imitation of the currency aris-
ing from our clumsy and elastic sys.
tenn
Business Situation.
The business situation demands
more serious attention. IT is cert,in-
~ not entirely satisfactory. On ali
sides there are indications OF con
traction No improvement can be
recorded in the iron trade, which 20
tinues to run at abod, naif its full
capacity, leaving many hands out of
employment. Prices are being con
tinually cut by the Independents, and
the great Steel Corporation persists
in the questionable policy of resisting
the natural conditions. When Mr.
Carnegie was at the mead Of the steel
business he was noted for tn prompt
ness and skill with which ne met the
natural to and fro mu4emenjs of the
market, the result being mucl.
healthier situation than exists today
Consumers cannot and will not pay
present prices The only true policy
is TO meet actual changes in condition
and lower prices to a point that will
bring orders Activity will then be
restored. closed furnaces win be start
ed and idle labor viii be re-employed
possibly at lover wages, but better
that than iIleness. should the rail
roads procure concessions in rates
from the interstate commerce com
mission the placing OF pending issues
will undoubtedly be greatly facilitat
ed, and large proportion OF the
funds thus raised will OF necessity be
spent in the steel and allied indus
tries. This would give q powerful
stimulus to these trades and naturally
have a beneficial effect upon business
at large. Presumably the interstate
commerce commission will take thi'
into consideration in reaching thei!
decision For years the steel OIL
ganiZation has endeavord to resi-
economic law and run upon a policy
of restricted output and high prices
rather than keeping he market full
at the price it can pay. It's present
policy of restriction, if carried out &c
logical conclusion, would mean thu
famine was the basis of prosperity
which is Of course, absurd
Industries.
The cotton industry is also suffer
ing, not SO much from artificial re
staiction as from the high prices ne
cessitated by shortage in the cottol
crop Manufacturers are in an ey
ceedingly awkward position for IN
reason that consumers will not pa.
present prices, and any reductio
would simply wipe out all mill owl
ers' profit in view Of the present higl
| price Of cotton. In consequence boz
northern and southern mills are ser
ously discussing further Shut down!
the leather industry, too, is in crit
cal state, and is suffering from oye'
| production of hides. An extensy
shut down movement is now being in
augurated In copper the situato
fails to improve, overproduction her
also being a serious menace. Wha
the outcome of such conditions in on
industrial world will be it is premS
! ture to forecast Fortunately tn
business situation as whole
sound. The over-expansion in credi
is being corrected, and there is goo
reason to believe that. as soon as on
captains of industry are ready to NEE
! the situation by making price cor
cessions, demand Will revive an
business will go on, perhaps upon
lowcr, but safer and more satlsractor
basis. In these advices 1t mas bee
repeatedly insisted that readiustmer
was as imperative in the commodit
markets rs in the security markets
II would appear that we are no.
passing through this stage.
HENRY CLEWS.