New-York tribune., 1902-05-26
MONEY AND BUSINESS.

When due weight is given to the unpromsing
aspect Of the labor situation It is impossible 10
explain the strong undertOne OF the stock mar
ket During the two preceding weeks more or
less decline occurred, but seldom severe ex-
cept where special properties had been abb
surdly inflated by manipulation. Meanwhile,
there was always in evidence a remarkable
recuperative power. which brought prices back
before any extensive liquidation had taken
place. Going back for over year the ef-
feet of this potent force may be seen. rallying
prices quickly whenever a setback encoun-
tered. and many such depressing events were
crowded into those twelve months If this is the
natural result OF a national progress too strong
TO be checked by the loss of any man crop
or other single factor then there is no reason
for alarm. How far the changed economic con-
ditions responsible cannot. of course, be
even approxima tely stated but the permanence
of high quotations must be based this and
not artificial support even of the strongest
financial interests. 1t is the uncertainty this
point that has caused the investing we'll as
the speculative public to limit operations.
Local banks have greatly strengthened their
position in the last two weeks. This is the result
of concluding a number of important deals that
called for the use of much money, and
facilitated by the transfer of funds from other
cities where the rate OF exchange on New-YOrk
has been at a considerable premium. Chicago
exchange reaching as high as 60 cents during
the week Instead of the customary absorption
by the Sub Treasury there large disburse-
| ments by the government for pensions, which
neutralized the effect Of heavy customs and in
| ternal revenue collections. A small shipment to
| New Orleans the only drain cash re-
serves. the anticipated gold exports failing to
| materialize. This was somewhat puzzling in
| view of the steadily declining rates for money
| call loans at one time being negotiable for per
| however and instead of rising to the gold ex-
! porting point there appeared decided ease for
/ sterling The merchandise movement was un-
| usually favorable for this country. increasing
! the supply OF bills. Foreign banks improved
/ their position also. notes and discounts being
| heavily reduced by the Bank of France while
| the proportion of reserve to liability was in
| creased by the Bank Of England.
| Domestic trade proceeds at an unprecedented
! pace all staple lines of merchandise going freely
/ into consumption. There IS still some tagging in
retail distribution, due to unreasonable weather
| in few sections, but there ls diminution OF
| confidence, jobbers receiving liberal orders and
| wholesalers enjoying a brisk business Shipping
| departments at many cities working over
time. and reports Of preparations at the West
grow more satisfactory with the progress of the
| crops. II expectations realized il will be
| country west of the Mississippi River Eastern
| trade does not yet show loss through the coal
strike. and may not for some weeks, owing TO
| the large earnings accumulated by the miners
! but any protracted strussle will hurt business