The Cairo bulletin., 1914-02-09
Henry Clews Declares Wilson's Ac-
ton Removes Possibility of
Intervention.
PERIODS OF INITIATION
MEAN RISE IN VALUES
3 Nothing Needed to Revive Trade But
Recovery of Confidence Which
Will Act as Stimulant.

New York, Feb. S.-President
Wilson's action on the Mexican
question in removing the embargo
would appear TO be the best thing
to do under the circumstances. 1t
now puts us in line with other great
nations in connection with Mexico
and removes the possibility OF inter-
vention. 1t also confines the fight
ing within Mexican borders. as 1t
should be, and the more desperately
they fight the sooner the trouble VIII
be ended President Wilson through
his achievements in the short time
he has been the Executive of the ma
ton, has made himselg the most in
fluential factor today in political lie
in this country; and his present at
titude towards the trusts ana Dusl-
nee. generally, which places him ON
record as a constructionist and not
destructionist, is certainly well
come one, aS IL Will VI ms o''N'N
more confidence in business circles
which will lead to increased courage
in em5arking upon larger business
undertakings, resulting finally in
genertl trade partaking of its for
mer a tisity.
The dominating Influence in the
security markets today is the World
wide easy of money, For a long 0er-
iod stocks have been unduly d2'
pressed by abnormally high rates Of
interest. The sudden and extreme
drop in interest rates has since the
year began caused a complete change
in conditions affecting Investments
Since the prospects are for continued
ease in money the world over for
months to come, it follows that many
GOOD securities which have been
selling on a six per cent basis acd
higher must show a gradual increus-
ed appreciation. In few shofN
weeks interest rate dropped consio-
crably. AS yet there has been no
corresponding advance in the value
of securities. The two main reasons
for cheap money are tho slowing
down of BUSINESS in the princlpa
commercial nations--the United
States. Great Britain and Germany
and the disappearance oil the1
strain induced bytho Balkan war,
followed by release Of funds boarded
during the struggle. How long the
present ease of money will last, 1t
Is difficult to determine. The pres
ent slackness of trade cannot con
Time indefinitely. Thus far, thcre
has been no reproduction oil mer-
chandise in any of the great mar
kets. and industrial conditions ara
generally sound. Nothing is neea-
ed for q trade revival but q recov-
cry in confidence which OF itself VIII
be stimulus to new enterprise.
Cheap money must prove very I'M
Many fiotations have been long de-
layed owing to excessive interest,"
rates, and as these are launched the
funds thus acquired will be reds
tributed in the channels of industry
and cause a natural business recoF-
cry, both at homo and abroad. The
principal langer has been from
flood of such fiotations. The new
capital issues in London in January
were nearly G220,O00,000, the
largest on record for that month,
and G13,OO0.000 ahead of a year
ago. Indications point to further
heavy issues, particularly in govern
ment loans, the latest being c H.
100000 Belgian loan. Fortunately
in this country we are proceeding
on much more prudent scale. The
new output of securities in the Unit
ed States in January was reported
at about S130,000,000, a decrease
of nearly s20,000,0O0 compared
with last year. Moreover, the net
amount of issues was much less than
the above figures for the reason that
considerable proportion represent
ed refunding operations or payment
of maturing obligations. This means
a speedy reduction of what was in
reality floating debt. Nevertheless,
both monetary. and business situa-
tions are automatically correcting 9
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