New-York tribune., 1902-08-18
MONEY AiD BUSINESS.

Dread of tight money and forced liquidation
brought q severe collapse in quotations of Sc
curIties at the opening after the double holiday,
and the average of the sixty most active rail-
ways declined d dollar. Heavy syndicate
operations had produced most of the rise in
prices and were also mainly responsible for the
increase in loans. which caused the poor bank
statement that appeared while the Exchange
was closed in honor of the coronation. Conse-
ouentIy there was a wild rush to sell when busl-
ness was resumed on Monday morning. and, as
usual the financial situation automatically ad-
justed itself. Nothing occurred TO make the
agricultural outlook less roseate. and reports OF
railway earnings continued to show gains over
the cores sponding date in all previous years
while so much business was offered the railways
that traffic congestion was in evidence at many
points As these facts were grasped by specu-
lators. and the serious stringency failed 10 ap-
pear in the money market, there was gradual
return OF confidence and stocks were repur-
chased.
It was natural that rates for both call ana
time loans should rule higher than year ago.
for the double reason that the associated oahAS
were less strongly fortified and owing TO the
enormous production of grain and cotton to Dc
harvested and transported to market Yet there
was sign of pressure and careful stuoy oI
the situation reveals no cause for alarm. F1rmer
buying OF stocks on margins. thereby preventing
an undesirab Bile loar expansion II is asserted by
prominent bankert that Western banks are ID
especially good position to handle the crops TINS
year, and the Controllers report shows much
larger supply OF cash than year ago. Needs
will undoubtedly be greater. however, and re-
serves held this centre will be drawn upon
to a considerable extent. AS an offset there are
prospects of enlarged banknote circulation. re-
ceipts OF new gold, and favorable balances with
the Sub-Treasury AS evidence OF the
greater independence Of the Northwest. one
large local bank which usually carries much
paper for certain interests in the wheat region
is not loanng a cent at present. Consequently
It seems probable that transfers to the interior
during the remainder of the season VIII De
smaller than usual notwithstanding the fact
that they have been large thus far. on account
Of the corners in July grain options
There is also encouragement in the GOOD eA-
hibits of the two leading foreign banks. which
STRENGTHENED their position during the past
week. Settlement ar London was also effected
without producing any bankruptcies, although
some concerns were known TO be in a precarlous
position. A helpful influence was undoubtedly
the reaction In Kaffir shares, liquidation ceas-
ing on good reports from South Africa Amer
ican paper abundant in the London money mar
ket indicates that coming heavy exports of sta
pie products are being discounted, and there Is
little prospect of any further engagements of
gold for export. In fact, the rates for sterling
exchange weakened very decidedly. new evi-
dence of this nations marvellous advance in
international finances the little comment
caused by the listing of Russian bonds on the
New-York Exchange. A few years ago TINS
would have aroused great enthusiasm Preiim-
mary figures for July exports mark the turning
point in the outgo OF domestic products, which
have lost heavily owing to the short corn crop
and high prices for meats and cotton. From this
time there will appear distinct improvement,
rapidly expanding as the new crops come for
ward.
That business is not suffering the customary
midsummer lassitude is clearly evidenced by the
brilliant exhibit of the clearing houses for the
last week. Increases of from 10 10 So per cent
over the corresponding period last year, which
in turn surpassed all previous records, measure
faithfully the heavy payments that are being
made The increasing clearings cannot be ex-
planned by speculation. for that is no more
vigorous than ii year ago. and only a part
of the difference is due to higher prices. This
amounts to an average of Il or 20 per cent in
securities and about per cent in commodities.
which should, of course, be taken into consider
alton. Current retail trade continues large in
volume and healthy in tone. but the best feature
of the present trade situation is the activity of
preparations for subsequent business. There is
an air of confidence that bodies well for the
future. barring serious catastrophe The
present solid basis was secured in the face Of
vigorous opposition by labor agitators, who have
done their best to check the nations commercial
progress. Serious results may yet come from
the anthracite coal strike. though more in the
nature of physical suffering than industrial loss
Only a minimum of the manufacturing plants
are idle: even with labor troubles and fuel short
age there is not the customary amount of sum-
mer closing. Despite these Influences which
are known to reduce pig iron production seri-
ousy. there is an increase OF more than 10 per
cent over the production year ago. Structural
work and railway equipment progressing at
an unparalleled rate, yet many operations are
indefinitely retarded by delayed deliveries of
steel. Sentiment has become unanimous In this
industry; the pessimists no longer delaying pur-
chases in the hope of better terms, but gladly