The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-04
FINANCIAL AND COMMERCIAL
TWURspAY, Sept. I

seem to alternate at present between Pc
Jiods OF strength and periods OF duinees,
The qualifying observation ia almost unnec-
esaary that the strength and the weakness
referred to are merely relative and that
they represent exceedingly small huctua-
tions in a market that has become very
dull Day fore yes, erday prices declined:
vest erdav hey advanced. and to-day they
declined again Tn, entire net changes
were, however, hardly worth mentioning.
the exceptional decline in Colorado Fuel
and Iron being hat which could only he
expected In the narrow market Tor the
security after tho lack OF action by mo
directors Of the company Yesterday re-
garding the dividend on the preferred
stock. The feature Of the stock market
to-day. 40 far as any was disclos ed, con-
tinued to he its firm tone and its evident
greater willingness to advance than TO
recede TIL, abrupt rise in the Bank ~
England's minimum rate of discount from
to per cent was somewhat surprising
although most people who are accust omed
10 keep well in touch with financial AFFAIRS
abroad locked for a rise in the rate to y,
per cent AZ least In recent years changes
of full point in the Banks rate have
not heen uncommon. English consols fell
tn the lowest point touched nv them for
over thirty wears. and the entire London
MARKET As well "a the various European
b,nrses, was disturbed. Sales Of stock In
this market for foreign account were. how
ever, very small Despite the low price
range Of the English funds In the last few
years. it has been brought about by purely
natural causes. and in the opinion of COM
petent judges no great change for the better
in the price can be expected as long az the
expenditures Of the English Government
continue as heavy az they have been. with
their inevitable consequence Of large Gov
eminent borrowings The matter has little
more than academic interest, 40 far as our
own country is concerned. The real i'm
portance of the action Of the English banks
directors to-day-and one that speclllat ors
here were, az is often the case, slow to re-
alize-was the realization Of those to whose
hands has been largely committed the rule
in English finances that because Of the poor
harvests abroad, and other circumstances
with which everybody Is familiar, the Eng
lish imports Of foodstuffs and cotton from
this country will this year be very much
greater than usual, and that extraordinary
efforts will be necessary to prevent the
Bank OF England from losing gold in guam
tity. The foreign exchange situation be-
tween America and England is, in other
words. immensely more favorable to this
country than it has been for a very long
time.
Propitio,s weather was reported to-day
In the corn belt. and the high temperature
locally emphasized the possibility that, in
accordance with precedent. warm Sep
TENDER may follow cold August. The
banks have lost since Friday 2,5O9, 900 to
the Sub-Treasury, but three-fifths Of this
was due to deposits yesterday in the
Treasury by a bank in this city in
retirement Of circulation and does
not represent crop movement demands
Changes in the money situation have,
ever since the announcement of Sec
rotary Shaw's proposed relief measures,
been steadily and surely in the direction OF
greater ease Time funds are more readily
obtained and are even being pressed upon
borrowers, and reports from all the interior
cities are that money lenders there are
much more disposed to extend accommo-
dalton. The news that additional deposits
Of Government funds in the national bank
repositories have already begun Is, Of
course, likewise encouraging. The impor-
tant development Of the day was, however,
the publication of the Government report
OF the condition OF the cotton crop in Au-
gust. showing far better condition Of tho
crop than had been looked for by even san
guine people in the cotton trade. The condi-
ton stated was that Of 3D.. an improvement
Of over ? points as compared with the
preceding month, Of 10 points as compared
with that Of August last year, and nearly
10 points above the ten-year average. As
the acreage Of cotton this year has enor-
mously increased over all preceding seasons.
much the largest cotton crop ever gath
cred In this country is indicated, and
the belief was almost universally e1-
pressed to-day among those who have
carefully followed the recent e1traor-
binary situation In the cotton market
that the phenomenally high prices for
cotton that have prevailed must soon
crumble. The corner that exists In the
nearby options for the future delivery Of
the staple may continue to be work ed
a little while longer but 1t is clear that
cotton planters will now rush their crop
to market as soon as possible, that spinners
and other consumers Of the article will be
encouraged to delay purchases. and that
amid such conditions corners must be OF
short duration, if, indeed, they do not
Immediately tumble dsastrously about
the heads Of those who have reared them.
1t is also clear, on the other hand, In view
of the utter scarcity Of cotton in mills and
storehouses throughout the world, that.
despite the large crop in the current season
that now seems probable, fairly high
price for the article is assured. 1t can
hardly be considered probable that a lower
price than cents pound will be paid for
the great bulk Of the American cotton
grown in the present year 1t Is therefore
fairly certain that not only the wealth
Of the Southern planters In the ensuing
eight months will be heavily increased. but
that foreign exchange will be made by
a food of cotton bills in the near future
at a rate whose rapidity has been rarely,
il ever. witnessed in the exchange
market.
Another matter which will interest Wall
Street is the statement, which may he au-
thoritatively made, that at the meeting OF
the directors OF the Chicago, Milwaukee
and St Paul Railway yesterday, at which
the regular semi-annual dividends Of a..
nar cent were declared upon the common