New-York tribune., 1903-07-27
MONEY AND BUSINESS.

RedliZa tlOn of the worst is usually DeIlef tu<4n
suspense. and the stock market rallied sharply
after the long heralded assignments were act
uaIly announced. Reckless and unsuccessful
pool operations We're at the bottom of the diff
fculty. complicated by the forced liquidation of
many accounts by the financial institutions that
had been providing the necessary funds. Liqul-
dation was very severe on Friday morning, and
at the lowest point many of the new highly
capitalized issues established low record prices
and some of the older issues fell below the bot
tom point of the panic two years ago Inc
lowest average of the sixty most active rail-
ways however, barely escaped touching their
low point at that time. During the snort
season of recovery there was a little more in
vestment buying, but the greatest support was
given by the profit taking purchases for the
short account While there is good reason to
look for further advances in the near future.
it is also probable that there will be much ir-
regularity during the next few days.
Call money offered at 2 per cent or less does
not sound like financial market undergoing
retrenchment and preparing for a season or
pressure; but six months time loans and COM
mercial paper both at Per cent demonstrate
the position of the banks. The latest exhibit
of the associated banks showed fairly strong
position but this has been accomplished at the
expense of much forced contraction of loans,
capitalists. There does not appear to be any
cause for alarm. that the leading hnan-
ciers have taken positive stand in the matter
of excessive borrowing: but it Is probable that
not a few will be extremely conservative. at
least until the events of the last few years are
forgotten Yet it is stated by those in position
to know that the same policy of lending all out
of proportion to the intrinsic value Of the secu-
rity is still being done in respect to cotton. This
problem has a we'll defined limit just now. but
after the crop begins to come forward it
may very easily be overdone. European banks
continue strengthening their positions. The pro-
portion of reserve to liability in the Bank Of
England rose to 1896 per cent. showing the
strongest position in seven years.
Both domestic and foreign trade are expand
ing in many desirable directions, and there is a
striking distinction between financial and stock
market conditions and those prevailing the
farm and among traders and manufacturers.
The outlook contains much of encourag
ing nature that the few perpieXiug features
are relegated to d position of secondary i'm
portance That the people are paying their
bills promptly is evidenced by heavier
bank exchanges throughout the country
outside of New York, where speculation rem
ders the statistics uninstructive. Very large
gains in railway tonnage and earnings testify
distributed. Crops of the chief staples are
being secured in much greater abundance than
seemed possible earlier in the season. and the
last really alarming industrial factor is being
adjusted in a capable manner. Unquestionably
much structural work has been postponed for a
year. or perhaps longer because of the stub
born contest. but it had become imperative
The thoroUgnness with which the agreement is
being handled suggests that when the local
building trades do resume fully they will not be
interrupted by some trivial matter.
Unwholesorne conditions are becoming aggra-
waited in the cotton market and will cause
serious loss not only to the reckless speculator
who sells cotton he does not possess-he merits
no sympathy-but the mill owner, the spinner
and weaver, the shopkeeper in the mill districts
and the consumer of cotton goods all must
suffer because the clique of spectators has
forced the price of middling uplands to 1915
cents a pound, while the July option rose to
1915 cents. So far reaching is the baIeful in
fuence that in England and on the Continent
the mills are gradually closing. It is true that
stocks are low and firm price is fully war
ranted; but there is ample cotton in sight and
at the mills to keep large share of spindIes
active if the cost of the finished product was
within reach of the consumer The tendency
of wheat and corn was toward more accessible
price news from the farms grew more en-
couraging, but, usual in these markets for
the great staples, any price movement is antici-
pated and overdiscounted by spectators, so
that there a sudden recovery on reports of
hot winds in the belt. The new crop year
is opening with light Western receipts and
small exports as compared with normal years
Industrially the most startling event of the
week was the reduction in prices of staple lines
of spring woollens. Less important lines had
been opened in preceding weeks at firm prices
and met with a satisfactory demand. The only
explanation is in the trade competition, for the
market conditions did not call for a return to
the low prices Of year ago in the face of an
average advance OF about two cents in the raw
material. There is little new as to cot
tons. The percentage of idle machinery in the
mills increases daily, with neither jobbers nor
sellers desirOus of making contracts for delivery
of goods. 1t is evident that quotations have
risen as far as the situation will warrant and
consumption will draw upon invisible supplies
as long they last Good news has become a
thing of regularity in discussing the boot and
shoe industry. Weekly forwardings from Bos-
ton average 10000 cases more than last wear.
and the interior buyers have furnished factories
with sufficient business to assure full operation
of machinery for some months at least Revival
OF the billet pool and establishment of uni
form price level were the most notable incidents
in the steel industry. while there was a little
better inquiry for pig iron.