New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-14
MONEY AND BUSINESS

III
The unexpected purchase Of 100000 bonds
ON Friday, at prices higher than had previously
been refused, was precisely what might have peen
looked for IL the Secretary Of the Treasury mao
been more interested in the stock market than IN
public business. In public needs no reason Ioe
such change appeared. The money market was
easy and abundantly supplied, not only here pu. AZ
almost every other city Of consequence Az u.i'
season there is neither pressure nor the rear Oh w
and the comparative dulncss Of trade and indus
try caused in part by the policy OF the secretary
party in Congress- had made it probable that there
would be no increased demand for legitimate busi-
ness purposes until August or September. But the
stock market was tagging, and large purchases OF
bonds at prices previously refused poured oil On
the firos of speculation In this as in some other
respects the policy of the Secretary for the past
two years has been Just what it would have been
II shaped with exclusive regard for speculative In
terests rally in stocks Immediately followed
and a great boom in wheat and corn, and also
decline in exports of domestic products. Prior TO
that. exports had been small for the week ondinS
on Tuesday II per cent below last year while In
norris last week showed ON increase OF about per
cent.
No withdrawal Of money from circulation maze
necessary change Of policy, for on saturday
the cost Of bonds accepted on Friday being rs yet
unpaid, the Treasury held only 100000 less
cash than at the CLOSE Of the previous week III
is to be expected that Treasury balances VIII De
somewhat reduced early this week, and they
have been reduced in all, since the bond buying
began, s3,4s4,212. The great gain in bank re-
serves is commonly, but mistakenly, attributed to
Treasury operations. Last week the banks gained
s51s6SO0, while the Treasury actually held
only 100000 less cash at the end than ut the
beginning of the week Reports In The FL
nancial Chronicle show that bank receipts OF
currency from the interior were large last week,
and the rates of domestic exchange indicate that
money is coming this way freely as is usual
at this season The employing of money into
market already thus oversupplied, following
the advance in rate by the Bank Of England,
has tendency TO increase exports Of gold and
to prevent movements Of foreign capital In this
direction.
Wheat mounted 6 cents to 81 per bushel for
May and corn rose l-2 cents, with an advance
of nearly 2 cents in oats. II can hardly be
said that the Government crop report caused
this rise, for somewhat less favorable IMPORT
was generally expected, and sudden advance OF
cents in wheat occurred the day before the official
report was given to tho public whether It's
tenor had been made known to favored operators
or not, the public can only guess The report
points to yield Of winter wheat 1000, 900
bushels short of last years, which may or may
not be in part compensated by an increased yield
Of spring wheat for the late and wet season
may prevent sowing to some extent in the
Northwest On the other hand, tho suppression
Of wheat exports Is increasing tho surplus to be
carried over, which now seems likely to exceed
3s, OOO, 600 bushels. In five weeks ended May
/ "a pfc
amounted to 1,s7s,3s7 bushels against 6,Sso,2Oo
for the same weeks last year, and against this
the. increase in exports of -four WAS only $4,000
barrels or corn, also, the exports were ,640,6
bushels against 4,os1,0S7 for the same weeks
last year. The changes in other prices not
MATERIAL pork advanced % cents per barrel
and lard cents per 90 pounds; cheese declined,
sugar and cotton were each shade lower while
oil advanced fraction and the minor metals
| were strong.
Prices of stocks closed at average Of $50 81,
| a decline Of 81 20 per share for the week; year
| ago the average was 81 SO. At that time very
| large crops were expected; now prices arc much
lower but the crop prospect is less favorable The
| last statement of railway earnings by The flnan-
cial Chronicle" covers 0G roads and shows an In
crease of 80 per cent, but the mileage operated
was l-2 per cent larger than last year, so that
|
the returns which come in earliest indicate gains
much in excess Of the average and twenty eight
| roads for the first week Of May report gains Of
! nearly IL per cent but in April the earlier re
| norris were of the same sort. The fresh accounts
Of rate-cutting concern the live stock and dressed
beef traffic mainly, but Western wars have mean
while ceased to attract attention.
The volume Of business represented by ex-
changes outside of New.York was 1-2 per cent
below that OF last GEAR Il the first week OF May,
with losses at nearly all Western cities. Last week
the incomplete returns indicate q smaller de-
| crease about per cent at New-iork ana IL
per cent elsewhere. The reports OF failures grow
more numerous; for two weeks OF May 4ol have
been reported In the United States against 2SS
for the same weeks last year. 1t is noticed,
ON the other hand, that the output OF iron is
acain increasing. the report Of ." The Iron Age
making the weekly capacity Of furnaces in blast
on Nav $4,000 tons; year ago 1t was
1913. 400 tons Prices OF iron and steel products
still tend downward and the demand is still hesi-
| tating and irregular. The averages of ten quota
tions Of Ohio, Pennsylvania and West Virginia
wool n year ago. on December !, before the Presi-
| dents message appeared, on April and May l.,
with similar averages Of ten quotations OF Now
York. Michigan, Indiana and Wisconsin fleece, and
Of fourteen quotations OF combing and delaine
| fleece are as follows:
| May 's7. Dec.l.'S7. APRIL ss Mayl.' So.
'TErinl., -; saa aas S2l SIT
c1 wa. and D.l.ia. ssss2 s sss s sas sls
But the price of print cloths has strengthened
| during the past week, and tho market for cotton
goods seems to have improved in tone.
Secretary Fairchild Is going to DO tho guest
of number of Brooklyn Democrats, who will
give him a dinner on May 10. The precise OBJ