New-York tribune., 1905-04-10
MONEY AND BUSINESS.

active railway securities rising above all pre-
vious figures for this year and within 81 Of the
highest point on record. In so far as natural
market influences are concerned, there was no
more occasion for the advance than there was
for the previous weeks decline. Fundamental
conditions appear sound. unless the proposed
increased issues OF stock should be carried 10
excess, as they were few years ago. and an
other season of assimilation becomes necessary.
Railway earnings large and Industrial re-
ports are even more satisfactory. In fact, the
latter must be held responsible for the most
sensational event Of the week. which was the
new high-water mark touched by the preferred
stock OF the Steel Corporation. After selling
somewhat freely, European traders came into
this market and bought at nearly the highest
prices The proposal to issue S1OOOOOOOO ad-
ditional capital stock did not depress quotations
of Union Pacific, but the pending tax bill was
apparently responsible for the sale of a Stock
Exchange membership at $751; 800. a decline Of
81 500 from the previous transfer, which the
high record price.
Although events in the financial world were
calculated to harden the money market, the last
week brought slightly lower quotations wher-
ever any change occurred. In addition to the
Japanese loan Of $75OOO.OOO. there were several
new railway borrowings of considerable size,
and much larger issues OF both bonds and stock
are contemplated. Local bankers are still at
sea regarding the disposition by Japan Of the
large sum that will be at her disposal in about
six weeks. If it is decided TO withdraw any
considerable amount from this country, it is
obvious that the supply of exchange win be
utterly inadequate. and rates will rapidly ad-
vance to point where specie must be exported.
While it is gratifying evidence Of national pros
perity that investors ready to lend so much
money to foreign country. it is none the less
a serious matter to have it withdrawn from the
market. Owing to Treasury Withdrawals the
amount Of money in circulation decreased last
month, and another call for $27 100000 has been
made. all Of which must have direct bearing
upon money rates. because 1t is practically cer-
tain that the decrease in deposits will not con-
tinue to be neutralized by an equivalent ex-
pansion of banknote circulation.
Favorable reports are still the rule from lead
ing branches Of trade and industry. There is
liberal increase in the distribution of spring and
summer wearing apparel and other seasonable
lines of merchandise, and the movement is so
heavy in many cases that deliveries are delayed
in transit. Reports not uniformly satisfac-
tory. but this is mainly owing to local cOndi-
tions, and in the aggregate, results are very
encouraging. This fact is demonstrated by the
weekly statistics Of bank exchanges and rail-
way earnings. while the steadiness Of commod-
for consumption. Outdoor work is making par
ticularly rapid progress. an early spring being
the rule rather than the exception. and some
cities are reporting a remarkable number OF
building permits notably in Michigan Minnesota
and in that section Notwithstanding the fact
that the Outgo Of wheat is Insignificant other
products are making up the balance, particularly
manufactured articles. and foreign commerce is
fully keeping pace with the growth in domestic
trade. Such quarterly returns as are thus far
available indicate that the first three months Of
1905 showed striking improvement over the
corresponding part of last year
Fundamental conditions in the staple markets
remain unchanged. but erratic fluctuations are
produced by superficial influences. Although il
is much too early to arrive at anything definite
all indications point to a very satisfactory year
for the agricultural communities. Spot cotton
has held fairly steady, but options have varied
in sympathy with the latest cable from Liver
pool each statement OF work on the
plantations One State report that sales Of fer
tilizers exceeded last years had a depressing
influence until II was announced that there
would be a much larger acreage of grain upon
which the fertilizer was to be used. Many SINH
lar trIhing reports attracted attention. but the
important elements Of large receipts and only
q fair demand from spinners remained the dOmi-
nant influences. Although conditions were not
altered in the wheat market, it was not surpris-
Ing that some recovery followed the recent ex-
tensive decline. Apparently the operation con-
sisted chiefly Of profit taking by the short inter
est. Exports made a favorable comparison with
recent preceding weeks. but continued insignif-
cant as compared with normal seasons.
Very encouraging reports are still received from
the leading manufacturing industries. One labor
dispute settled by per cent reduction in
wages, and another settlement of greater i'm
Portance was made at the old rate. while in the
steel industry n voluntary advance of 10 per
cent affected much larger number of employees.
Prices are unchanged in the textile industries
the volume Of business is fairly we'll maintained
and the outlook is encouraging. A slight decline
in the average Of domestic raw wool quotations
is not significant. it refers to the tag end Of
the old season. reports from the ranches indi-
eating that the clip Is meeting with a large
inquiry at full prices. The position Of the cot
ton mills grows stronger s the supply of goods
in all other hands approaches depletion. Shoe
shops nearing the period between seasons
when 1t is possible to stop machinery for a fort
night of stock taking and repairs. The volume
of orders already booked promises general ac-
tivity when cutting begins. Larger sales Of
hides and leather are reported at firm prices the
tone of those markets being particularly healthy
Output of blast furnaces and steel mills CON
tinues TO establish new records. although there
is some unevenness In the distribution of orders
Makers of rolling stock for the railways ara
probably in a better position than any other
department OF the steel industry.
--------
Mayor-elect Dunno of Chicago did well to send
to Glasgow for a teacher in municipal ownership.