New-York tribune., 1902-08-25


the money market where it is needed Against
1858 OOO 900 of this gold there gold certff-
Gates in circulation, while S15O.OOO,OQO is held
as reserve against far greater volume OF
paper money. Consequently. there Is only about
500. 500. 900 of free gold in the Treasnry-5y no
means an excessive amount. good gain In
reserve was shown by the local banks. mainly
because of the reduction In loans.
In case Of emergency 1t would now be an easy
matter 10 draw large sums of the yellow metal
from, abroad The three leading European banks
have recently strengthened their reserves to an
unusual extent the Bank OF England now hold
ing a proportion of reserve to liability amount
ing to 52.5T per cent, as compared with o5o5
per cent at the opening of the calendar year
Early in the week foreign exchange declined so
extensively that there talk Of the point being
reached where it would be profitable to import
gold before the usual heavy export movement
of staples. High rates for eaH money were
largely responsible for the liberal offering OF
bankers bills, which was directly aeeountaoie
for the sudden fuctuation. When II was found
that the local money market was not going
higher however, the reaction in exchange rates
was prompt and the recovery was stimulated
by moderate purchases of bills for remittance
Present industrial conditions, especially in rela-
tiop to international trade. are not conducive
to heavy credit balances for this country. ana
il NAV take some time to neutralize the bad
effect of the preceding months returns Silver
exports are also unsatisfactory, owing TO the
situation in the Far East and prices remain
weak.
Domestic trade is remarka bly, sustained. in
view of certain retarding influences. vast
army of wage sarners has weakened its purehas-
Ing power by voluntary ideness, while. on the
other hand abnormally high prices for many
products would naturally curtatl consumption.
Nevertheless. retail business Is OF more than
normal volume for the season, and there is no
evidence Of decreasing confidence as 10 the fu-
ture- Jobbers and dealers are anxious TO place
large orders for distant delivery, and in most
cases the reluctance to undertake commitments
is found to lie with manufacturers and their
agents. 1t is undoubtedly the fact that there
never was a time in the history Of the country
when such an enormous quantity of forward
business was placed, or when prices for msF-
chandlse were so easily maintained Grain mar
kets advanced because arrivals continued to
grade low, ard the difficulty OF making del!v-
cries on option contracts gives control of The
speculative markets to the holders or futures.
Exports Of wheat and -four increase as foreign
crop reports grow less encouraging. The outgo
OF corn, however. has dropped to the lowest
weekly total for many years, prices being far
above the views Of foreign buyers Hog packing
increases, hut provisions sSiiipdtn4Seu with
advance In corn.
In the leading manufacturing industries the
question OF vital Importance is not the hnding
of market for finished products. but the situ-
alton as to raw materials. Each week brings
new high record prices for Chicago packer hides,
and shoe factories that have contracts for large
deliveries In the future are not In an enviable
position. Il is rumored that leading interests
are manipulating the market for temporary
effect only in which IL may prove disas-
trous for the small tanners. Meanwhile, weekly
shipments Of boots and shoes from Boston are
increasing and other sections Of the country
report equally active shops Textile mills also
have o proposition in the markets for cotton
and WOOL Insects and drouth have caused some
loss on Southern plantations, although nothing
definite IL yet known. Raw wool is frEn. and
any further advance is deprecated by dealers.
who fear the OF substitutes Pig Iron fur
naces are banking because coke cannot be Sc
cured. but IN this Industry the inadequate sup
ply Of material is supplemented by liberal I'M
ports. Locomotives in great demand to
handle the coke supply. and in many branches
OF manufacture expensive fuel is making !, i'm
possible to earn regular dividends.