New-York tribune., 1905-11-13
MONEY AND BUSINESS.

the stock market directly due to the sharp ad-
vance in the money market to the highest posi-
ton in the last three years. This produced
much liquidation of securities that being
carried with borrowed money. and in a short
time the loss averaged about So share from
the recent high water mark but 1t is by
means clear that the situation has yet become
healthy. The artifcialty of the market and
the strength Of some manipulators were evil
denced by the high record prices that were
being established in Reading while the general
level declining rapidly. Aside from tho
weak condition OF the local banks and the in
fated position of the stock market there was
no explanation for the reaction; but none is
necessary. Splendid returns Of earnings are
made by the railways. and industrial reports
thoroughly satisfactory. but the Secretary
of the Treasury does not appear inclined to
contribute government funds to the assistance
of stock market spectators by making large
increase in deposits of public money with the
local banks, although such aid confidently
expected by many operators.
Call money rose to Is per cent and the gen.
eral level was abnormally high. which not
surprising in view of the fact that it prac-
ticaly certain that the associated bank state
ment would show deficit for the first time
in about three years. Yet the CONNER
cial world did not suffer funds being ample
for all requirements outside of the speculative
zone. and when rates highest there
was a considerable movement of funds to the
South. If this money is to be used for the
purpose Of holding back the cotton crop 1t
will not benefit the general financial situation
but if it helps to produce larger exports of the
Southern staple, the local money market will
profit by a larger supply of exchange. During
the last week the international position i'm
proved somewhat. and gold exports became
more profitable terms that New-York offered
to foreign capital, sterling rates declining with
the advance in the money market. new high
record for the amount of money in circulation
per capita was due to receipts Of new gold and
issues of bank notes. Treasury finances are
about maintaining balance between receipts
and expenditures. but total stocks of gold con-
tinue to establish new records daily.
Although there is nothing sensational about
the growth of trade 1t has continued to make
steady progress for many weeks, and it is al
most certain that a careful canvass of every
branch of business would show that in the ag-
gregate the volume is now eclipsing all pre-
vtous records. This is demonstrated to some
extent by the comparisons of bank exchanges
and railway earnings. although the former are
affected by the speculation in securities. and
transporting facilities largely monopolized
at the present time by farm staples. In several
leading industries there is much complaint re-
garding the high prices of materials, and the
general level of all commodity prices stands
the highest point in over two decades, accord
ing to Dun's Index Number" Speculation
special influences may sometimes produce in
f1ated quotations at some of the exchanges
but 1t is safe to say that the total of all mer
ohandise values could not long be maintained
above normal unless there was relatively Wig
orous demand from consumers Fictitious prices
cannot long prevail for any large number of
the necessaries of life. Moreover it appears
that the recent advance confined almost
entirely to articles of food.
Erratic changes continue in the staple mar
kets. each week providing a large supply of
contradictory influences. Wheat very firm
for time account of the situation in Rus
sia and the belief that exports would continue
to increase no matter what the price, but subse-
quently there was competition from Argentina
in the worlds markets. and Western receipts ex-
panded, probably because the railways
able to provide sufficient facilities han
die the grain that offered Some
what similar conditions noted to
corn, but in both there is a gratifying
improvement in the shipments abroad. Sensa-
tional fluctuations occurred in cotton, an early
advance being produced by vigorous specula-
ton, after which there was sharp reaction
when the Census Bureau returns of the guam
tity ginned were taken an indication that the
crop would exceed expectations. This down.
ward almost Immediately
checked and another of advancing prices
appeared. with more definite explanation
than announcements of cold and wet weather at
the South while the official report Friday
started a second liquidation
In all the leading manufacturing industries
there has been a further upward tendency to
quotations, which causes a little uneasness
among the more conservative element. yet the
changes appear to be warranted in most cases.
Thus far the advances have in no instance re-
tarded activity; on the contrary, several large
contracts were closed by procrastinating buy
ers because of the fear that terms would be-
come still less satisfactory. 1t is becoming
practically all extensive negotia tions now In
progress applying to next years business Tex
file mills are very we'll occupied and there is
increasing complaint from dealers that stocks
of cotton goods falling very low. This prom
ises well for the future. although the ma
terial of this industry is attaining position
where total consumption may be restricted. as
there is a limit to the purchasing power OF
even the most prosperous nation on earth.
Raw wool is quiet and steady and there is no
important incident in sight nearer than the next
London auction sale on November 27. Figures
of pig iron production have continued 70 In
crease, yet the record breaking output dnos