New-York tribune., 1905-08-21
MONEY AND BUSINESS.

1902 which the high water mark prior to
last week. This phenomenal advance Is the
more incomprehensible because it is not possible
to discern any large inquiry on the part of the
general public. Since prices began TO eclipse all
records there has been a little commission house
buying and support became more widely dis
trbuted, but the largest gains were made by the
higher priced stocks and purchases by pools and
prominent operators were undoubtedly response
BILE for the bulk of the advance. AS usual, after
long continued advance. there is more inquiry
by outsiders, and many brokers report that
small traders and investors have put in orders
slightly below the market. Indicating inten-
ton TO take advantage OF any reaction. Accord
ing TO precedent these prospective buyers will
become impatient If the desired opportunity
does not shortly appear, and, after advancing
bids several times. they will buy at the market.
This will be the psychological moment for
manipulators to unload their holdings and to
reap the harvest that has been tardy in
maturing. Yet there many arguments for
strength in the security market. Of which easy
money, large crops, increasing railway earnings
and general prosperity throughout the nation
appeal to the most casual observer. In fact,
the only sound argument that can be advanced
against higher prices is the fact that they are
already above all previous records.
Rates for money are maintained at remark
ably low position in view of the many inf1u-
ences operating to harden quotations. Surplus
reserves Of the associated banks are small for
the season, and the non-member institutions
port slight deficit although the majority
state banks that not compelled to main
tain cash reserve above Is per cent of depos-
its. An active and advancing market for securi-
ties calls for liberal accommodations, and IN
terror banks have begun TO draw local cor
respondents unusually early this season. In
addition to the indirect transfers of internal
revenue collections which have been in progress
for some weeks, direct shipments have been
made both West and South single transfer Of
100000 going TO Chicago Meanwhile there is
the constant menace OF gold exports. which
cannot be averted if foreign loans in this market
are withdrawn suddenly. The official statement
of foreign commerce for July on both merchan-
disc and specie account shows balance in favor
of this country of only S21 .622 267 which would
leave little for settlement of loan obligations
after deductng tourists expenses, freights, in
surance etc. and in the mean time supplies of
commercial bills in the foreign exchange market
have been utilized to a large extent IN making
remttances on subscriptions to the japanese
loan.
Commercial news of the last week was de-
cidedly encouraging. There was a renewed dis
position to provide for the future on a liberal
scale, particularly in all lines OF wearing ap-
parel and structural work. Country buyers
have come to all the primary staple markets
with the evident intention Of placing sufficiently
large orders to neutralize the deficit in forward
buying that was noticed earlier in the year.
Manufacturers are encouraged by the slight re-
sistaEce that is shown to the generally higher
level of prices. and, while there are occasional
complaints of cancellations little anxiety felt,
owing to the fact that in some cases more con-
tracts had been booked than it was possible
to fill. notably in wOrsteds. Reports of building
permits indicate the same disposition to provide
for large future needs, and much of the work
originally planned for this fall will have to be
postponed until spring. owing TO the difficulty
experienced in securing structural steel. The
yellow fever epidemic is still drawback In the
vicinity OF New-Orleans, although bank ex-
changes at that city continue to make favora BILE
comparisons with the corresponding period last
year A much better situation is noted in re-
gard to labor controversies.
Bright crop prospects had a depressing infu-
ence on the grain markets, and prices of wheat
and corn fell to very low position when COM
pared with sensational quotations earlier In the
season, one well known authority predicting an
eXportable wheat surplus Of 200, 900 900 bushels
Subsequently there was considerable recovery
that was started by unfavorable accounts re-
increased
activity among exporters. Less activity is noted
in the corn market. and crop news is generally
favorable, although an early frost would do
much damage. Spot cotton declined to 1Ola
cents for middling uplands in the local market
while options were depressed by aggressive
speculation for the short account after which
there was some recovery in response to unfavor-
able dispatches from Texas and indications that
strong interests We're making a concerted effort
to force liquidation by the numerous small
traders who had sold cotton that they did not
possess.
In the manufacturing world the chief develop
ments have been favorable to the producer, but
in many cases most unsatisfactory TO the con-
, sumner. Buyers in the primary markets for cot
ton goods tempted to await better prices
I'm view Of the cheaper raw material but the
manufactured product tended upward. in spite
of the fact that II was made of raw cotton pur-
! chased below current prices 1t is becoming
more and more evident that the supply of cotton
goods is inadequate and that buyers will find
il increasingly difficult TO secure deliveries
Woollen and worsted mills are assured OF activ
ity having been compelled to withdraw new
lines almost soon they were opened and
wool is firmly held at the highest point of
the season. although trading is quiet Manu-
facturers of boots and shoes have made the
promised advance in quotations. but the change
is more radical than is customary in that indus
try. The advance OF 17la cents on some lines
might be expected to discourage purchasers hut
on the contrary. it is the sellers who hesitate to
accept contracts for distant delivery Improve
ment in the iron and steel industry is very
gradual.
The Grand Army of the Republic Is growing