New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-10
MONEY AND BUSINESS.


failures had been announced during the week
and there numerous rumors regarding the
strained condition of many other firms For
time investors and spectators lost their Judg-
ment and many lines of standard securities
were unnecessarily sacrificed. On Thursday the
support of few strong interests came TO the
rescue. and when recovery once began there was
a healthy demand from all departments. Pront
taking by the short account had the usual oene-
fetal effect, but outright purchases by bargain
hunters were the most helpful influences. An
other decline followed the report of an increase
in loans by the associated banks. however, and
at the lowest point railway stocks showed de-
cline of about S33 share from the high rec
ord established nearly year ago. 1t is neces-
sary to go back to the opening month of 1901
to find an equally low average. On the other
hand, it should not be overlooked that even
when prices were lowest they actually stood
above the top point of the twenty years 1882
1901. The fact that transporting properties are
intrinscally as valuable as when they sold
nearly 40 per cent higher is clearly evidenced by
the enormous earnings
As much OF the recent liquidation in Wall
Street was directly due to the calling Of loans
on stock market collateral, it was natural that
there should be uneasiness regarding the con-
dition of the financial institutions. Yet the as
ISOLATED banks gained largely in surplus reserve
during the last half Of July, and lost only a
trife last week Notwithstanding the incompre-
hellsible expansion Of loans Continuous declines
in prices of securities necesstated the calls for
more collateral, and while it unfortunate
for concerns that could not provide the necessary
stock. it obviously essential for the protec-
ton of the banks. Much abuse has been directed
against institutions that accused of forcing
liquidation, yet the banks first duty was to
~ IL,
did call loans rise above 3 per cent. and
time money was available at reasonable figures
when proper security was forthcoming. In
preparation for the assured demand that is i'm
minent in connection with crop movement, the
local institutions have very properly strength
ened their position, and during the next few
months low rates for money cannot be expected.
Government operations thus far this month have
been against the banks
Once more legitimate business has ignored the
vagaries of speculation. and when pressure was
most severe in the security market trade returns
were most encouraging. Jobbers are placing
liberal orders in fall lines particularly of wear
ing apparel. and from many cities the reports
indicate bright outlook. AS strikers gradually
return to work retail trade feels the impetus,
and at the interior there is more activity as
farm operations progress. A slightly lower level
of prices for meats has q beneficial effect, COM
ing 1t does from ample supplies and the
moval of inflated quotations. rather than from
any decrease in consumption Reports that
heavier tonnage is offered than the railways
handle also testify to the vigorous circulation
of commodities, while larger bank exchanges
than year ago, at leading cities outside the
zone of speculation, give evidence of heavier
payments in connection with legitimate trade.
Collections fully up to the average fo- the
season. although storekeepers in the anthracite
mining region complain that there is little dis
position to clear up accounts incurred during
the strike.
Conflicting reports still make it extremely
difficult to ascertain the agricultural situation.
A fairly liberal yield of winter wheat has been
secured. but there is uncertainty regarding the
crop of spring wheat in the Northwest. Lack
of sufficient warm and dry weather is retarding
corn and cotton yet several States of large
acreage are making most satisfactory progress.
Livestock receipts at primary markets are
heavy. and the returns Of pork packing average
about 100000 more hogs weekly than last year.
Prices of wheat have been advanced, chiefly
because of smaller crop estimates from abroad;
but thus far the export movement has not indi-
Gated any alarm regarding supplies abroad The
speculative element is largely responsible for
the strength of grain and cotton, interrupting
cash business both for domestic and foreign
present speculation to thank for largely in
creased competition from abroad since every
effort is being made to extend acreage in Egypt,
India. Africa and South America The complete
control Of the situation demonstrated by the
CLIQUE during the last week, when an absurdly
high bid failed to secure any cotton
Manufacturing news would be decidedly en-
couragng were it not for the idleness at cotton
mills Spinners cannot undertake contracts at
ruling quotations for material and finished
products which are badly disproportionate.
Since the year opened cotton has risen
cents a pound, while print cloths have advanced
only ia cents and other departments OF the
industry make equally unsatisfactory exhibits.
Yet buyers delay advancing bids. in anticipation
of a return to normal conditions before sup
plies are required In other industries there is
little idleness, and many plants are working
overtime New-England shoe factories forward
more footwear than in any previous year, and
several lines have advanced moderately in price
Leather is sought more freely, but the steady
decline in hides tends to delay purchases of
leather in the hope that more attractive terms
steady demand, the mills having successfully
opened new lines of woollen goods. At the
lower prices there is more demand for pig iron
The activity of steel mills indicates that sup
plies are being freely consumed. and it is merely
a question of a few weeks when the necessity
for material will be imperative.