New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-26
MONEY AND BUSINESS

The past week has been one OF large prospects
and large failures. Crop reports improve. business
prospects everywhere brighten, railroad earnings
increase. clearings of interior cities show vol
ume of actusl business never surpassed, and for
eign trade expands marvellously. But the fail
ures are heavy. and indicate some real trouble
in the commercial world. Great corporations, like
the Wauregan, doing an enormous and profitable
business, are not allowed 70 stop payment because
Of any senseess scare. 1t is rarely more dLhicult
than now TO find reasonable explanation for cur
rent facts The man who starts with thee =
and hunts facts 10 fit il, is just now particularly
sure 10 offer an explanation that is not reasonable
Two SETS Of explanations rule the hour in Wall
Street. One may be called the tai I'm view
Of things stocks ought to go up beca crops are
large and business unsurpa ID, and the money
scare is manufactured by a pool of bankers who
are caught with S2O,0oo,00O Of Governments.
and are trying to force Secretary Window 10 pay
them high prices in order TO =" relieve business
The merit of this explanation is that such pool
does exist, and is using and magnifying events
to the extent of It's power in orde: TO brighten or
force the Secretary into submission. The other
may be called the bankers view of things:
money is tight, just as everybody foresaw months
ago, when gold was going abroad, and the surplus
funds which have been used for speculation
are now required to move crops so that loans must
be curtailed and stocks be passed over TO those
who can pay for them. This has the merit Of
recognizing the fact that in Eastern markets
there is real scarcity Of loanable funds, and out.
side capital is TO be attracted hither. whether from
Europe or from the interior, rather by lower prices
than by higher rates.
Wall Street is apt 10 see the tape' and no
further. H. forgetS that call loans do not con.
sttute the market IL is not true, some assert.
that money is in ample supply for commercial
needs. For weeks past. the demand for COM
mercial paper has been narrowing, and the supply
increasing. in consequence. some people need the
money in business who cannot get il. This is
the meaning of failures, and every banker knows
that there is a full supply Of money only on call
and for loans securities that is for speculation
On the other hand, there is no evidence that the
Treasury can relieve the difficulty, because it is
largely caused by pouring too much money into
commercial centres and thus diverting too much
TO speculative undertakings, trust organizations.
railroad building land and mining operations.
Buying bonds would put more money into the
same channel, which night be entirely absorbed
by stimulated speculation.
The weakest link OF chain breaks first, and
the failures mean settlement for losses sustained in
| WoOlltu anu COTTON ManulnCtuFe ana trace, IN
consequence of oycrproduction and overpurcha =
ing last fall, followed by an exceptionally open
| winter. To a less extent the same causes have
affected the leather and boot and shoe trades.
These are important branches of business, but
meanwhile many others are prospering The iron
and steel industry shows the largest consumption
ever known. The coal trade has not recovered
from In last open winter because unwise COM
binaton TO hold artificial prices hinders recovery
Wheat has declined cents, and 600, 900 bush
els went abroad last week, with 1900, 900 during
the previous three weeks against 1000 900 last
year. Flour exports were 403 900 barrels. against
$4,000 list year, and corn exports 1900. 900
bushels, against 100, 900 last year. The cotton
movement is small and present supplies are scanty
| but English mills are stopping because prices are
TOO ldgh and the coming crop is doing well and
promises 20 be the largest ever grown. PorI,
products have declined during the week and are
moving largely, and the same is true Of oil, and
even the Sugar Trust has yielded IA for the weel,
in the prices of crude and crushed, and I-s in
graduated.
! II the msney occupied in carving trust stocks