New-York tribune., 1903-02-23
MONEY AND BUSINESS.
creasing

| .h,+ ,,+rinsic values of securities shrunk dur
ing the last week: the contrary, railway earn
ings for the first half of February make even
better comparisons with previous years than
the months Immediately preceding NeVerthe-
less the stock market became demoralized and
quotations declined sharply. The first sentl-
mental influence the nearer approach OF
gold exports; next there was selling for foreign
account based on unsettled conditions abroad;
then a number of damaging rumors were cir
culated regarding a leading local traction prop
erty and finally 3he uneasiness started sensrai
liquidation by timid, or perhaps wise, traders
who did not wish to take the risk OF carrying
stocks over the triple holiday. 1t was essen
TALLY a week in which the security market
responded entirely to speculative influences
none of which had any bearing on the funoa-
| mental condition of the properties involved
Investors were not emptying their holdings on
, the market, but at times there were eVidences
| Of purchases on this account. Prices may have
been unreasonably high when the week opened
that is matter to be determined by the FUTURE
| but there was logical explanation for the de-
cline in any recent developments.
For several consecutive weeks surplus re-
| serves Cf the associated banks have decllned
| and the changes were almost wholly due to ex-
pansion OF loans. The situation finds re-
rnarkaby close parallel in the corresponding Pc
| riod of last year. During February, 1902! loans
of the associated banks expanded S660O0OOo
raising that item to the highest point ever at
| tained. Last Saturdays statement, however
| put the record S1OOO0,OO0 higher. The CO.
incidence continues further; in neither year
was the increase in borrowing due 20 an
active and advancing stock market, and
explanation must be sought in the syndicate
operations During the past week the sub
Treasury has again ABSORBED cash from tne local
banks on customs collections, withdrawal OF
banknote circulation and transfer OF currency
to the South. Meanwhile there has been less OF
| a movement toward New-York from the interior
as evidenced by the declines in rates of domestic
exchange. Nevertheless call loans commanded
| only 22 per cent, and short term time loans
| were available at AZ per cent. That no alarm
was felt in the banking community regarding
the size of reserves is shown clearly by the fall
ure to advance rates. Meanwhile gross gold in
| government vaults established new high records
daily until $500. .344, ,667 was reached
It is This unprecedented accumulation of the
| yellow metal that renders innocuous the ship
| ment of s.. 100000 or $40 100000 in liquidation
| of our Indebtedness abroad. A nation with such
an enormous storehouse to draw upon has no
occasion for anxiety regarding its foundation
for credits. The local money market may feel
temporarily the withdrawal Of cash, but in the
broader sense there is always satisfaction in
settling debts and decreasing the amount of in
, terest due creditors. No engagements OF
gold rave yet been announced although rates
for foreign exchange rose SO close to the ship
ping point tfat only com oination of events
postponed the movement. Sterling exchange at
Paris is only about a certime above the posi-
ton where triangular operation could be ar
ranged. but the Bank of France strengthened its
position by contracting loans and increasing gold
| ciy,1y cd don
is the place where gold is sought. Borrowing
has Increased in connection with revenue pay
ments and preparations are being made for the
large TransvaaI loan that is expected in April
On this account consols are declining. Call
| money is commanding fully 1 per cent more in
London than In New-York and 1t is probable
| that only the triple holiday prevented engage
nnents of gold for Tuesdays steamer the loss of
three days interest being just sufficient to make
| the shipment Improbable.
Both domestic and foreign trade reports indi-
cate that there is no dimnution in the vigorous
activity that has been enjoyed for long that
it has almost come to be regarded perma
nent. Temporary setbacks from storms are not
permitted 10 cause more than the briefest possi
Bile interruption. although ii is growing exceed
| ngly difficult to secure extra labor during an
unexpected demand Of this nature. Otherwise
the blockades would be removed even more
quickly. Supplies of locomotives, cars and ter
minaI facilities are still inadequate, but the
transportation problem is solution. In
all the leading staple lines of wearing apparel,
groceries and household necessities there is a
wholesome demand that prevents accumulation
of stocks. and reports regarding collections are
favorable as a rule Almost sensational deveI-
opments have appeared in the cotton market,
and 1t is difficult to distinguish between specula
tive and legitimate causes for the advance.
Manipulation is undoubtedly factor. but there
is reason to believe that high prices are partly
warranted by the relation of supply and de-
mand. Estimates of the total yield are being
reduced below II, 100000 bales. while spinners
are consuming cn a scale that makes the visible
supply appear small.
Manufacturing plants are still maintaining
| heavy production, shipments Of footwear frcm
Boston now SURPRISING last years figures to
date by over II 900 cases while few textile mills
are working below their full capacity. and in the
iron and steel industry the only retardng factor
is the supply Of coke. Orders for fall samples
promise a good season at shoe shops, although
leather is advancing stimulated by very large
shipments abroad. Hides strong. considering
quality. Small advances in prices of cotton
goods have been made. but not at all equivalent
to the rise in the raw material. Present business
is in goods made from cotton purchased earlier
in the season at fully cent lower prices. but
contracts for distant deliveries cannot be placed
without proper allowance. Duness in the lead
ing Eastern wool markets is due to the fact that
the mills have provided for immediate needs,
but there is no evidence of weakness in any
division Of this market 1t is difficult to find any
! news bearing upon the iron and steel situation.
On some days the deliveries of fuel are adequate
but oftener there is a deficiency. and banking
of blast furnaces occurs frequently. Foreign