Combine cherries, raisins and bourbon in a large mixing bowl.
Cover tightly and let stand overnight in the refrigerator.
Drain fruits and reserve bourbon.
Place butter in a large bowl of an electric mixer and beat on medium speed until light and fluffy.
Add sugars gradually, beating on medium speed until well blended.
Add egg yolks, beating until well blended.
Combine 1/2 cup of the flour with pecans.
Sift the remaining flour with the baking powder, salt and nutmeg mixture and mix thoroughly.
Add the reserved bourbon and the remainder of the flour mixture, alternately, ending with the flour.
Then add the flour and pecans, beating well after each addition.
Beat egg whites until stiff but not dry; fold gently into the cake batter; blend thoroughly.
Grease a 10" tube cake pan; line with wax paper.
Grease and lightly flour the paper.
Pour batter into pan within 1" of the top.
Bake remaining batter in a small loaf pan.
Bake at 275 degrees for 4 hours for tube pan, 2 hrs.for loaf pans.
Cool cakes in pans on rack for two to three hours.
Remove cakes from pans and remove wax paper.
Wrap cakes in cheesecloth saturated with bourbon, then wrap in aluminum foil or plastic wrap and store in tightly covered container for several weeks.
Cut into thin slices to serve.