New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-23
MONEY AND BUSINESS.

MONEY AND BtSiNbSS'
We bove 70 90 back twelve years to the spring
Of 1887 In order to find railroad stocks as hlgn
as they are now. The average OF prices for the
sixty most active railroad stocks. now s'V TO-
at that time rose above S1l share on May
H. and so remained three weeks. but has never
touched $40 a share since. higher average
OF prices was known in the years lSSO-S5, Out
az no other time and 1t is not at all surprising
that shrewd and long headed men begin TO ask
whether the rise has not gone far enough To
find a reasonable answer one has 10 consider
not merely railroad earnings, which are larger
than heretofore but the accumulation of capital
and the opportunities for its investment Most
people fail TO remember that the buying power
Is a force changing perhaps more than any
other affecting the value OF securities. nation
which is adding $1,000 900 or more to its
accumulated wealth in n year VIII pay a better
price for securities which guarantee good re-
turn for their worth than 1t would pay having
not half as much money to invest.
Men think OF 5000 900 put into new In
dustrial and trust concerns during the last year
il It were capital. but IT is not Probably
S400O00000 I'm cash would buy the entire prop
critics which all the concerns have acquired. but
much more than that amount OF securities Is de-
livered to the owners in payment for plants.
There is no important investment Of money In
these operations. and there has not been seen
in many years an Industrial combination which
has taken much new capital out Of the market.
# all the Industrial corporations were managed
on business principles. showing every month or
every year what they were doing. things might
be different. but. except the mere spectators
who never stay in anything. Americans are not
fond OF blind pools There is a vast deal more
money to find Judgement in legitimate securities
than there ever has been before, and the supply
OF good securities may possibly not Increase as
fast the demand for them.
Railroad stocks rose last week 81 - a share
and trust stocks ~ cents a share. and the
earnings in three weeks Of January have been
I = per cent greater than in 1895 and pa per
cent greater than in 1897. If Europe sold 10000
shares net during last week, some say, 1t had
no more influence than fieabite The country
Is not taking its prices or It's laws from Europe,
and may perhaps be better able to measure
its own earning power than any foreigners can.
Nobody in this country or ont OF II would have
guessed that the volume Of business I'm January
thus far had been 81 per cent greater than last
year and 81 per cent greater than 1897. and for
the week OF per cent greater than two years
ago; but disclosures OF that sort have wellnigh
ceased TO surprise Americans.
Neither can anybody tell how far the indus
trial expansion may go The iron output already
dwarfs that OF all past years. but is distinctly
below the demand for CONSUMPTION. that
prices are legitmatey pushed upward. 1t
is encouraging that as yet prices OF no class Of
iron products have been so far advanced as to
cut off the great foreign trade which has been
recently acquired. \ moderate decline in leather
has not yet suficed TO put the boot and shoe in
dustry in good health. and shipments from the
Fast are smaller than In the last four years.
Hides are yielding slightly. and the industry has
not yet escaped its embarrassment Nor have
woOen goods shown material improvement as
yet and without better prices for goods or lower
prices for wool the manufacture can hardly
look forward 10 great prosperity. There has
been a better though not really a large
market for woollen goods In most lines not
yet enough TO keep the works fully employed.
In the cotton manufacture a heavy demand war
rants numerous advances in price. but the mar
ket still waits for something more definite In re-
gard to the price of the material The specu-
lative advance helps but also binders. because
many do not believe that the market for the
material is likely to hold its recent advance.
Cotton is the conundrum Of the year Nobody
wants to buy II all the cotton known to have
been grown is TO he saved in decent condition.
But men are buying and prices rising. be-
cause II Is believed that great quantity OF cot
ton viii be practically lost January receipts
thus far have been 10000 bales less than last
year, with takings Of spinners $1,000 bales larger
and exports 100000 bales larger. 1t is not by
anybody supposed that foreign OF domestic de-
mands will continue relatively as large as they
have been Of late The fear Is that the supply In
cotton OF good quality will prove much smaller
than has been anticipated The exports Of wheat
exceed all estimates 177060lO bushels for the
month, against - J07 l57 last wear -four in
cluded for both years, making l4i0000O0 bush
els for the crop year against 1872 600 600 bushels
last year Corn exports are practically the same
as last year 10 date about 900 bushels for
both years The week closed with only an
eighth lower quotations for distant options Of
wheat and also Of corn. and, as usual OF late
the market manifested its exclusive devotion to
gambling interests by omNing cash sales or
quotations.
But II IS not betting on the price Of grain
which makes the great trade balance in favor Of
this country Nobody doubts that Europe is
piling up a heavy Indebtedness and the reduc-
ton OF rates by some foreign banks is obviously
an effort TO encourage liquidation rather than
further borrowing from this country. But now
or hereafter a large sum has to be paid on
foreign account The settlements through clear
ing houses here altogether the largest ever
known and last week for the first time exceeded
81 600 900 600 II is probable. for the New York
transactions alone were 81 100 245,Si6 for the
week and for several weeks the payments at
other clearing houses have considerably exceed
ed 5000 900 900 per week.
Six weeks is all that is left to the present Con-