New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-11
MONEY AND RNSINESQ


After the turn of the year there was noderat.
activity and strength in securities as money be-
came more abundant and easier. But the i'm
provement was largely due to professional
manipulation. and the absence OF commission
house buying soon checked the advance. With
the increased fear OF war and heavy selling of
stocks In this market for London account there
was some reaction. Ind sharp break followed
the publication OF the Steel Corporations report
This exhibit was fully as unsatisfactory as the
most pessimistic expectations. earnings in De-
cember falling far below any preceding month
while the last quarter OF the year recorded less
than half the profits of the same period in 1902
Undivided profits about a third those re-
ported at the close OF the preceding year, al
though much smaller dividends had been paid on
the common stock. which Is now out OF the divi-
dend class entirely. This dsheartening state
ment was followed by a reduction In the Car
and Foundry dividend. and the continued In
crease In railroad earnings did not prevent de-
preston in all departments. better feeling de-
veloped later. when the opinion became general
that the market oversold. but operations
continued largely professional
Funds tending this way from the IN
terror. and the increment is liable to Increase.
on the other hand. easier money and interna-
tIonal complications have strengthened the rates
pressed by overwhelming offerings of CONNER
cial bills. Consequently the receipts OF gold
from Europe have ceased. although arrivals
were sufficient 20 raise gross holdings OF gov
eminent vaults TO about S6SS 600 O00-a phenom-
email record At the beginning OF the year the
total money IN circulation had established a new
high water mark. averaging $50 IS for each In
habitant Federal finances are IN strong condi-
ton, receipts almost balancing expenditures. al
though the latter always heavy during the
first week OF the year. particularly on pension
account. Fundamental conditions In the money
market appear sound. chiefly owing to the con-
sentative action of bankers during the recent
season of readJustment. but there are still In
situations at the interior that are carrying large
quantities of securities that have fallen far be-
low their purchase price. and the holdings of
paper for large corporations are also excessive
in many cases Reduction Of such commitments
is constantly IN progress. and numerous
newaIs have been refused at maturity.
Business has not revived promptly with the
new year many sanguine individuals ex-
pected. but this may be due in measure to tho
Indictment weather. which demorallzed trans
porting companies and reduced the attendance
at the various markets. In so far this Is a
factor. It viii be only temporary. Dealers in
heavy wearing apparel especially rubber foot
wear and kindred lines. have profted by zero
weather. and In many instances II was necessary
to augment stocks In haste. The general situa-
ton is affected by idle forces. reduced wages
and threatened strikes In view of the evident
reduction In the purchasing power Of the people
II Is remarkable that prices OF commodities show
advance of per cent for the month of De-
cember. Duns Index Number being now at
about the same position year ago. This Is
unnatural in the light OF changed conditions.
and must be attributed to the speculation In cot
ton, the great strength OF foodstuns. and espe-
cially the exceptional prices of eggs and other
products that coming to market very slowly
on account of the weather. When these tempo
rary influences less potent there should be a
considerable cheapening of the cost OF commodi-
ties. otherwise consumption win decrease.
High prices for the leading farm staples have
prevailed, chiefly because of the growing impress
sion that war cannot be averted between Japan
and Russia. Under this influence strengthened
by the depression in British consols and the
hrmness OF European wheat markets, there was
q sharp advance in grain. despite liberal profit
taking by the Western speculative element
Subsequently much of the gain lost. but the
tone was firm and the market excited. Specula-
tive activity has continued in the coffee market
prices having risen more than 30 per cent above
the low record last year. Cotton was forced to
high point when the census ginning report was
issued. traders apparently conceding that the
decrease Of almost half million bales from last
years figures might be applied to the final CROP
That is by means certain. however, for the
ginning season opened several weeks later than
usual this year. and. furthermore, the reported
figures conflict with statistics of receipts APP
parently there less confidence IN the indi-
Gated shortage on subsequent days. for quota
tons declined extensively. 1t Is doubtful
whether this market ever IN a more unset
tied state than at present, brokers declining to
give advice. but insisting upon unprecedented
margins
Such uncertainty to the material natu-
rally demoralizes the cotton spinning industry
and the markets for goods, In branch of the
trade is there any disposition to undertake for
ward business. Purchases made only for
immediate transfer and the mills are manu- |