New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-08
MONEY AND BUSINESS.

+io, of lightly margined accounts the strong in
teras+s intended to secure new high record prices
This recovery was accelerated by substantial
purchases for London account, and the invest
ments of monthly dividends were made at what
appeared to be attractive prices. But the period
of liquidation was not over, and when large
blocks Of stocks were thrown on the market
during the second downward turn there was
little of the support by strong interests which
usually check such a movement by absorbing
the offerings. The average of the sixty most ac-
tive railways fell more than So from the recent
high record to the lowest position since January
y. Yet the intervening three months have great
" improved the actual value of these properties,
because trade and transportation have almost
steadily expanded since that time. and there is
nothing in the money market at present to ex-
plain the recent stock market vagaries. The
solution is evidently to he found in the stock
market itself rather than in any outside in
fuenoe. Prices were manipulated to an abnor-
mally high position by insiders, and recently the
general public became involved to an extent that
facilitates violent fluctuations The market has
shown Of late it's oldtime readiness to respond
to rumors, no matter how extravagant, which is
another evidence of the presence of small
traders.
Expectations Of continued ease In the money
market are being realized. borrowers finding no
difficulty in securing accommodation on any
good class of collateral. while the demand for
mercantile paper continues to exceed the sup
ply. The financial situation is not changed in
any important particular, and the position of
local banks is doub!y strengthened by the con-
traction OF loans through speculative Iiquida-
ton and the receipt of cash from the interior
and on Sub-Treasury operations. Government
disbursements have continued to exceed re-
ceipts raising the deficit for the fiscal year
thus far much higher than was expected. and
these operations should largely tend 10 neutral
ze the effect of Treasury Withdrawals of de-
pocits in the national banks. which are now
down to about half what they were at this
time last year. Chiefly through the increase in
holdings Of gold certificates the total amount
Of money in circulation has risen to $257S-
OO66SG, or an average OF S31 05 per capita on an
estimated population OF S3,OO0ONO which is
within SO cents of the high record established
on November l.
Trade reports continue to make remarkably
good comparisons with conditions at this time
last year, although the hardness of seasonable
weather at some points has restricted the move
ment of merchandise and produced uneasiness
among the traders who are wholly dependent
upon agricultural communities Yet crop news
on the whole, is much better than usual at this
Statements of. insolvences railway earnings
and bank exchanges for the month of April are
Of a kind to strengthen confidence in the fut-
ure. The small proportion Of failures to solvent
business indicates a solid foundation and the
volume OF traffic testifes to the extensive prep
arations that being made for the future
While the Transfers strike at Chicago has
seriously interfered with business at that oftv
this controversy is chiefly local in it's influence
and In the great manufacturing industries there
are practically no struggles OF Importance An
other good feature is the voluntary increase of
wages in many branches of the iron and steel
industry; and the vigorous prosecution Of build
ing operations makes it extremely difficult to
secure skilled wCrkmen at many points II is
also encouraging to note that foreign trade is
keeping pace with domestic business, especially
IN exports OF manufactured products
For a time there a natural recovery in
the wheat market, partly because of the oversold
condition of options, but more because of the
fact that prices had been depressed to a point
where they We're attractive to domestic milIers
and exporters. This increased demand not only
checked the decline but produced some recovery
Subsequently quotations were again unsettled
by numerous dispatches and estimates tending
to suggest that the new crop would be a record
breaker. Somewhat similar conditions prevailed
to eight cents for middling upands at this city.
Exports have been making remarkably good ex-
hiDits, but port receipts also run far be-
yond those Of the corresponding period last year.
and latest dispatches from the plantations con-
tain less complaint regarding the conditions I'M
der which the new crop is being started A
phenomenally heavy decrease in the visible sup
ply Of coffee caused sharp advance in price,
but stocks are still abnormally heavy.
There is no occasion for anxiety regarding the
outlook for the leading manufacturing indus
tries. Occasional complaints heard because
supplementary spring orders or fall contracts
do not come forward in abundance but as a rule
the plants have business on hand assuring ac-
tivity for some time to come; and with the gen
eral trade situation of the country on a sound
basis there is good reason to expect that the
mills and factories will operate full hours and
forces for many months at least. Footwear
shipments from Boston continue TO average
about ten thousand cases more than in the cor
responding week last year and work on fall
contracts VIII soon be fully under way. although
there are still duplicate spring and summer or |
ders TO be flI,-. In the textile industries the
most important event of the week was the |
million dollar sale of wash goods and numer- |
Gus other special clearances of the same kind |
which found such ready purchasers that II Is |
evident statements regarding the small stocks |
in the hands of dealers We're not exag- |
gerated. This clearing up of jobbers' supplies |
naturally improves the position of the primary |
markets, not only for the lines handled. but for |
all cotton fabrics.
This would seem TO be excellent time for
that much talked OF freight tunnel at Chicago |