New-York tribune., 1905-01-02
MONEY AND RHSINESs

The last week Of December brought a decided
improvement in prices Of securities, the average
or the sixty most active railways rising to about
the best point Of the year. The upward move
ment was largely due to a healthy demand for
investment Of the large dividends that will be
distributed during January. large part of
this business is always placed in advance. the
securities being purchased a margin to be
taken up subsequently by the payment OF the
balance 1t is also believed that there was con-
siderable manipulation for the purpose OF MAX
ing good annual statements, or what is termed
window dressing in the London market For
eign operations resulted In q heavy expansion
OF loans and a weaker statement by the Bank
or England than at any previous time since the
opening OF the year. Nevertheless, there was a
fairly good demand from London for American
railway shares. A few unsatisfactory state
ments Of gross railway earnings have appeared
but on the whole the December reports compare
very favorably with the same month of 1903 or
any preceding year. II is also gratifying TO
note that statements OF net earnings for No
venber show gains, Notwithstanding the fact
that operating expenses were very heavy. Part
Of the advance was lost during the last hour on
Saturday. the weaker bank statement stimulat-
ing liquidation, but the close was within $40 Of
the previous highwater mark.
An the available gold bars at the Assay Office
are engaged each week in advance for shipment
abroad. and the year has made a remarkable
record in this respect Nevertheless, the local
money market has failed to harden, and 1t Is
evident that the supply of funds is ample for all
requirements. including liberal contributions TO
EUrops. The supply Of commercial paper is
small. but mercantile collections are fairly
prompt. and interior correspondents are !ncreas
ing their deposits with local banks. Owing 10
large advances on cotton. Southern banks
have been forced to realize quickly on this form
of collateral but the sharp decline In price Of
the staple produced no serious financial disturb
ance. January dividend and interest payments
viii liberate little short Of S14OOO0OO0 and
while much of this money will leave this ctty
temporarily, the bulk OF It will soon return
Foreign exchange has ruled remarkably strong
partly because OF preparation for annual settle
ments and to some extent because of unusually
heavy imports Of merchandise The closing
month Of the year brought an almost uninter-
rupteu advance in the price OF silver bullion. Of
fertngs being limited both here and at London
Treasury operations were fairly well balanced
receipts exceeding expenditures by more than
S3'OOOOOo for December, leaving the deficit for
six months of the fiscal year about SD 600 600
Reports from the leading cities are generally
encouraging, trade in holiday goods having fully
o1NN~@A~N
disc stocks have been reduced to point that will
require early replenishing. which means busy
shipping departments and activity at mills In
the near future. Especially good returns are
received from the window glass and building
trades at Pittsburg. jewelry and textile factories
at Providence and the electrical industry at Phil
adelphia Although travelling statesmen returned
for the holidays with only fair amount of busi-
ness, they report prospects bright for the spring
season. Stock taking and Inventories caused the
usual interruption at many points, but reports
better than average for the season. except
from the South, where the violent decline in the
price of cotton has caused the cancellation OF
many orders. It is difficult to draw the usual
differences from weekly statistics because many
reports were delayed by damage TO telegraph
wires during the storm.
More activity is noticed at Northwestern -four
mills. and a better demand was followed by
slightly higher quotations. Wheat was also
f1rmer for time. but Liverpool ss5les failed to
respond, and exports again made a very unsat-
isfectory comparison with last years shipments
which were below normal While the official re-
port showed the expected decrease IN quantity
OF wheat grown in 1904. the abnormaHy high
price gave the crop much greater value than
the largest yield on record. Returns as 70 coarse
grains were even more satisfactory. the corn
crop being valued at over $1O00000O00. AL
though record breaking activity was not main
tained at the Coffee Exchange. sales continued
far above normal, and prices are remarkably
high considering the fact that domestic stocks
are about a third larger than they were a year
ago.
Manufacturing conditions are greatly I'm
proved by the copious rains in many districts
where idleness was enforced by the drouth
The fuel situation had become acute and not
only were many plants compelled TO suspend