New-York tribune., 1903-06-29
MONEY AND BUSINESS.

MONEY AND BUSINESS.
Securities are very slow TO rally a1ter Ihe
long period OF declining prices. Investment
buving by bargain hunters has failed to mate
ria1ize nor Is there any evidence of speculative
purchases On the other hand, however, II 10
nroba BILE that the readiustment has been car
ried quite as far intrinsic values warrant
since the somewhat disqueting incidents OF 'iie
last week have failed to cause decided weak
ness. Violent advances in agricultural prod
ucts suggested belief in serious crop injury ana
the labor situation became less encouraging
while financial conditions were not all that
could be desired. The net result was an eA-
tremely dull market, with fluctuations usually
limited to fractions. That the market dld not
yield materially was considered favorable
sign by many capable authorities Despite the
losses to southwestern traffic because OF Hoods
all railway earnings reported for June thus far
exhibit a marked increase over the correspond
ing period in any preceding year.
Stringency in the money market has thus far
been averted, but there is little prospect OF Pre-
venting higher rates when autumn demands are
made upon local Institutions Prosperity at the
West is no longer considered a safeguard
against Withdrawals of funds from this centre.
During the last few years it has always oeen
hoped that conditions had altered in this re-
for their customers. But it is now generally
recognized that no matter how wealthy the
West may be 1t will call on New-York for
funds when the crop moving season begins.
The only difference is that in former times cash
was borrowed here in large amount whereas
now the interior correspondents have large sur
plus funds on deposit in this city when find
ing no use for the money at home. When the
demand from the farmers begins the money
loaned here IS called home Its effect on the
local situation is the same in either case Ac-
commodation is restricted and loans are called
sufficiently to meet requirements
International financial developments Of the
week have been unusually interesting. Berlin
withdrew gold from New-York and London, and
before it arrived there a good gain in cash
and contraction of loans. Paris also added
largely to its takings of American gold, in less
than two months this movement having ex-
ceeded S13,000.000. Including shipments to Ar
gentina and Canada. the outgo of gold from this
city has exceeded $23, ,0000 600 since the move
ment began on April 30 Will, the leading
European banks have materially strengthened
their positions there has been no disturbance
here although the gross holdings Of the United
States Treasury vaults have fallen about
S13.OOO.0O0 below the high record of two
months ago Net movement of merchandise at
this port for the last week makes very
favorable comparison with the figures of year
ago, and rates of foreign exchange have weak
ened without the assistance of further pur-
chases of stocks by London.
Domestic trade reports are irregular. AT the
East the prolonged rainy season exerted
most depressing influence over all summer mer-
chandise except such is needed in wet
weather, and the big strikes also curtailed pur-
chases of staples. Throughout the South, how
ever. there is evidence of improvement in busi-
ness although collections still backward.
Chicago and other leading Western cities are
enjoying brisk trade and dealers report the
distribution of merchandise satisfactory. both
as to quantity and prices. Were climatic con-
ditions and labor troubles on the Atlantic Coast
restored to a settled state there would be no
cause for complaint among the storekeepers;
but burdensome supplies of goods now exist,
and midsummer bargain sales threaten to be
numerous. Efforts TO arbitrate the local build
ing disagreement met with every encourage
ment at the start, but bad feeling has grown
until neither side appears anxious for settle
ment.
Careful study of all the available official and
trade reports as to the crop situation fails TO
disclose any logical explanation of the sudden
rise in quotations. and it is probable that clever
,manipulation has again occurred. During re-
cent weeks the level of option prices has been
SO exceptionally high that a considerable short
interest accumulated, but the other element In
the markets has been strong enough 10 accept
all deliveries and still force quotations higher.
Short contracts have been forced to close with
severe losses The rise in grain is to be de-
plored chiefly because it discourages the ex-
port demand that had begun to assume salts
factory proportions. AS TO cotton, the contest
is narrowing down to a comparatively limited
number of traders. Prices have risen so vio-
lently that cautious traders have withdrawn
and spnners are making no effort to secure
raw material. Not since 1880 has middling up
lands sold as high in this city.
Manufacturing industries fairly busy, con-
sidering the season, the Interruptions by strikes
and the abnormal conditions existing to some
kinds Of raw material Footwear is more nearly
normal than any of the other great industries,
shipments from Boston surprising all previous
years and statesmen are securing sufficient sup
Elementary fall orders and inquiries for spring
samples to assure much work for the shops in
coming months. Until the more important lines
of wooliens opened the price situation will
remain undetermined but thus far the
light goods are maintaining the advance There
is difference of opinion between Eastern deal
ers and Western ranchmen 10 the proper
price for wool, which results in accommodating
stocks at the West. Manufacturers are able to
obtain sufficient old wool at unchanged prices
for current business, but later in the season
some concessions will be necessary if sales are
to be made. Cotton mills with goods hand
or stocks of material accepting spot
at small advances.
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