New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-22
MONEY AND BUSINESS.

have since shown good Judgment by opposing
any recurrence of Ill advised and reckless
operations. During the liquidation that followed
a tight money market, the average decline IN
quotations Of railway securities was about S2
share, and part of this loss was recovered after
rates fell back to less exalted position. Trans
actions were on a much smaller scale ootal
sales for the week being only about equal to
those of the corresponding week last year, when
national calamity closed the exchange. Ar
bitrage trading showed predominance OF sell
ing orders, but this market absorbed foreign Of
ferngs readily. The stubborn strength Of the an
thracite coal carrying roads was remarkable, as
much of the recent rise was supposed to be
based on the expectation of general resump
ton of work on September Is. Favorable legal
decisions supported Rock Island and United
States Steel while st. Paul reached new high
record price. above 1913.
Transfers of currency to the West and South
have continued moderate scale, but this
influence alone was not responsible for the SEN
sational events in the money market Call loans
reached 20 per cent. and the entire weeks new
accommoda lions were placed at an average OF
about per cent Stock market operations were
largely responsible. two big deals having influ-
ence while preparation for dividend dtstribu-
tons also exerted a temporary influence Treas
urv operations have resulted IN adverse bal
ances at the Clearing House. regular receipts
exceeding disbursements very largely. 1t is now
evident that the reduction in taxation that went
into effect July l will not only fall to result
in deficit but if business continues on It's
present phenomenal scale there is reason TO
expect a surplus for the fiscal year OF about
| S4OOOO00o AS government absorption of funds
was partly responsible for the high rates it was
natural that effort should be made by the
| department TO relieve the pressure October
int rti sd deposits
Of public funds were increased. Meanwhile the
net available cash balance in the Treasury
reached S21S 7745O0. and gross gold holdings
established new record at S5S2 593921.
Gold was secured abroad wherever transfers
| could be arranged. the movement thus far nav
ing aggregated 81. 10000. Much OF this is COM
| ing from Australia. and only small part from
Europe direct. AS the proportion OF reserve 10
| liability at the Bank of England is at the high
est point of the year, it should not be difficult
| to secure shipments from London, but incidents
| Of the last week indicate that our bankers have
| avoided drawing upon London. suggesting that
| it would not be desirable to harden rates over
/ there on account Of the heavy borrowing on
| exchange that is known to exist. Rates at the
| other leading European centres have hardened
| and gold shipments will be resisted. Foreign
exchange declined sharply when money rates
] rose and the liberal offering Of grain and cotton
| rnents Of gold however. there followed recovery
Expert opinion is divided as to whether eX-
| change rates will react readily with the increas-
| ing outgo Of farm products, the unknown factor
/ Of outsta nding obligations on exchange account
providing the element Of uncertainty.
| Fall distribution of merchandise is of unprece-
| dented volume despite some reduction In sec
] tons unsettled by labor controversies Advfces
| from the cotton belt are notably cheerful, the
| staple coming forward earlier than usual and
| commanding profitable prices. During the last
| three seasons Of better than average yields and
well maintained prices. together with rapid
DEVELOPMENT of Industrial enterprises that
region has attained great prosperity. Similarly.
| at the West there is a vigorous movement Of
| goods in anticipation Of liberal returns from
the cereal crops. Agricultural success naturally
| stimulates manufacturing operations. and the
cities share in the benefits secured on the farms
| It has become apparent that transporting facil-
| tiles fall short of the nations needs at the
present time, and the outlook is almost alarm
| ing. Grain is accommodating in elevators coke
| is piled high in the yards and with a resump-
| ton Of anthracite coal mining there will be
urgent appeals for shipments which it will be
| impossible to make. 1t is doubtful whether the
| seriousness of this traffic situation is fully ap
| preciated by those most interested
| Speculation has been more active in options of
| the great staples, led by advance in corn
| which was primarily due to the large short in
| terest. Had it not been for the hurried covering
| of these contracts it is doubtful whether rumors
| OF frost and the possibility Of future injury
| would have produced any marked advance
| Prices were already remarkably high because
or low stocks, and exports in consequence We're
| Insignificant 1t is most desirable to get sup
| pies up and prices down possible, in
order to regain lost foreign markets. Wheat
| has been coming to market freely, and prices
| nave declined TO more rational position utterly
| regardless of the upward tendency of corn 1t
was not 20 be expected that last months exports
| would compare favorably with those of 1901
| owing to the phenomenal outgo last wear hut
| the current month is maintaining a full move
1 Tnent Losses in Australia and Argentina indi-
cate that it will not be difficult find markets
| abroad for all the domestic surpIus
Raw materials Of the textile Industries arc
well maintained, especial strength having an
| peared in cotton despite unusually heavy mort
receipts thus far this season The customary
| low estimates circulated by foreign spin
ners. who naturally wish to secure cheap mate
| rial. while equally extreme statements of the
opposite tenor are heard from holders Of options
| Domestic mills are holding cotton goods for
| future delivery at high prices owing to the
predictions of ten cent cotton, and there is equal
indfsposition to make concessions as to uooIlens
Conditions in the markets for fabrics certainly
| appear to favor holders. Footwear factories are
also securing full prices and shipping more
freely than at any recent date but there is still