New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-26
MONEY md BUSINESS.

One week ago the question was WneCher an
the SPECTATORS, acting together, could put up
prices, and few doubted their power. At the
close on Saturday the question was whether
part of the spectators could put up prices
against another part, matter about which 10
is less easy to be sure. The events OF the
week indicate clearly that some OF the largest
and most skiiful operators have unloaded
shiploads of securities which somebody else Is
now CARVING The movement eliminated on
Thursday morning. when the average price OF
the same sixty stocks which had sold III April
of last year at $50 81 before the panic, ana a
year ago in October at $40 80. and Ill May last
at $43 10, reached an average OF 500 l3 the
highest point this year. This shows an advance
Of 35.5 pei cent since May and 2G.I per cent
since year ago. After Thursday the market was
more unsettled, but 10 great reaction followed
and the average at the close on Saturday was
sos OF.
Doubtless the exhaustion of bank reserves to
the extent of SO, OO0, 900 last week, and the
enlargement of bank cearings throughout the
country, are mainly due to the enormous spec
ulation which now prevails in stocks, bonds.
grain and oil. The sales of oil during six
business days ending with Friday amounted
=,
entire quantity in the country. The s;lcs OF
wheat at New York alone during two weeks
past have been 10, 100000 bushels, against
A. Oi9, 900 for the same weeks last year, ana
the corresponding speculation III other markets.
swellcd the exchanges in Chicago and Mil
waukee and caused large bank traEsfcrs ol
money. But speculative activity, as the
country should have learned by this tine, does
not help but binders, productive industry. 1t
is doubt ess mainly due to vast speculative
operations here that the banks have expanded
their loans over SIS, 100000 since year ago,
and their deposits over 500, 100000, Tor the
one thing certain is that the increase III iegtl-
mate business has not been such as to call for
such an expansion III the amount OF capital en-
ploycd. But the reserve is still very large, and
the surplus S31, 000,0 against So, 900
at the same date last year. 1t Is by some
regarded as significant that in several in
stances that have recently become known,
money has been borrowed upon special contract
to repay in gold. The present condition OF the
Treasury is improving. but it is felt that the
action of Congress next winter may depend
much upon the fall elections.
The Increase in the volume of Legitimate bus
great expansion of speculative operations
through the banks II is certain there has been
an increase, but evidence eau nowhere be
found that it is prOporiOnately as great as the
advance of 2G7 per cent in prices since year
ago Last year the rail. old shipments from
Chicago for four weeks OF October amounted
to $50, 500 tons, and this month to lsl,s4S
tons, but they were very large during the first
l. IA a., ,b Oh of
Der, at low and unremunerative rates, while
last week the shipments were only %, 119
tons against 29,06S tons for the same week
last year. The enormous movement III Septem-
Der and early tins month seems to promise a
dull business for some time to come. One
financial journal compares the earnings of
twenty -four railroads for two weeks of October,
but crrs in the opinion that the addition Of
Others would result more favOraby for the in
crease in the gross earnings on the twenty
four roads named was 5.3 per cent, and the
increase on all the roads reported for the two
weeks, thirty-seven in number, was only 81
per cent. 1t should be remembered also that the
railroads which have been losing most heavily
are not included in these weekly reports, such
as the Erie system, which showed decline of
1913, 900 for August the Wabash system,
which lost Sl91 200 for September the Burl-
ington and Quincy, which reported loss OF
SOB. 900 for August; the Pennsylvania, which
reported loss of $6G1 900 for August or the
Reading, which reported a loss of $SS9,000
for the same month. 1t seems certain that the
volume Of railway traffic does not yet Indicate
such an expansion Of Legitimate business as Is
represented by the rise in prices Nor Is for
egn trade especially encouraging. The i'm
ports at New York for the last three weeks
have amounted to $25, 1873, 96j against
$50, 593, III for the same weeks last year, but
the exports from this point hay e amounted to
only $19,219,025, against $40, 165,Sl6 last
year.
The chief reason for inactivity in the foreign
trade, it is Obvious is the excessive activity IN
speculation in products. The exports of wheat
from all Atlantic ports were reduced in the
latest week officially reported to 3S1, 4l2
bushels against 1,17S,34S bushels for the
same week last year. The decline in the price
last week was cents but no revival in exports
has yet occurred, and the price is still IL cents
above the same date last year. and was | cents.
Oil moved with great excitement and enormous
sales to 81 12l2 on Wednesday, but closed ut
81 90; the exports are large, and the monopoly
has raised the price of refined oil. Cotton was
more active because of the close of the strike
of spinners in Great Britain, and advanced an
eighth. Corn rose an eighth and oats five
eightns, and butter advanced one cent in spite
of the fact that exports were only 635,6S9
pounds, against 1,237,920 for the same week
last year. Metals have been steady and 1t is
thought the production of pig iron will not
increase during the rest of the year. as
some furnaces will stop while others will go
into blast. The coal movement for the latest
week showed Il decrease of 1,255 tons, or
1875 per cent, a circumstance to which the
dealers in stocks pay no attention.
Some months ago, when signs of improve