New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-11
NEW-yoRK DAILY TRIBUNE. MONrAY, DECEMBER IL 1908

vailinq in the local money market, but the ac-
tivity Of general business and the hahuilie -
the crops keeps most of the available supply
angaged at home. some discrimination is noted
for the first time this season in lending on IN
dustriaI securities, and in all financial oper
atoms evidences of conservatism increase 40
the situation becomes more complicated. Hon
day requirements will be beyond precedent ana
demands for small change are ALREADY 'dAiis
Treasury facilities. The stringency is hoI "uo
to any reduction in the total availahle amount
of money. for the per capita circulation on De-
cember l was officially reported as Sol 90
which is nine cents higher than month pre-
yious when all earlier records were surpassed.
Rates of foreign exchange declined sharply as
the money market advanced. until quotations
reached the point where gold imports were ar
ranged few months ago; but in the mean time
the price OF bar gold has advanced at London.
A heavy loss of cash carried the reserve of the
associated banks once more below the legal
limit
That the monetary strngency Is chlehy oue
to speculative causes is clearly demonstrated Oy
the fact that commercial activity is in no way
retarded and mercantile payments are satsfac-
torilv prornpt I'm most sections of the country.
The closing month of the year promises to con-
tfnue the favorable comparisons made by It's
ir,roadiate predecessors, bank exchanges rlslng
far above those Of 1904, emitting this CITY,
where speculative activity renders 1t diIncult u
secure an accurate measure OF payments IN coLi-
nercfaI channels While the weather mas Deeh
mora favorable for retail trade in seasonaole
merchandise it has not yet seriously retaFue
outdoor work building operations being on
rbsnor,enal scale ard prices OF all materials
very firmly heId 1t is necessary to go PACK
+-or+,,+vyo wears to find time when the gen
eraI level of prices of all commodities was
higher than at present, and, even making
moderate allowance for the effect OF speculation
at the commodity exchanges. it Is evident that
CONSUMPTION must be beyond all records since
the relations of demand and supply in the long
run determine cost
Sensational DEVELOPMENTS followed the depart
ment,s estimate Of a cotton crop of only 1O,16I'-
st9 ba1es Although a number of private au-
+bori+ies had predicted so low a total. there was
a general belief that the official figures Woulo
be much larger, and the session Immediately De-
came one of great excitement Before the close
Of the market on Monday it was estimated that
100000 bales had changed hands. and in
stead of the usual market unit of lOO pales'
transactions were made in blocks of 5000 bales
or more Evidently a very large short interest,"
existed, and before these contracts were closeo
the price had risen about a cent pouhd. III
stead of the reaction that usually follows SUCH
a violent advance, prices continued rising on
subsequent days. until spot middling uplanos at
this city sold $50 30 bale higher than year
ago or about the same price that ruled at the
corresponding date in 1903. In commenting on
the official statement it was pointed out by ex-
perts that the estimate last year was 1'ooOOOO
bales too small and that Southern planters are
known to be holding back cotton for which they
hone to receive Is cents. Yet port receipts are
remarkably we'll maintained and exports do not
show the decline from last years figures that
might be expected.
Manufacturing plants in the leading indus
tries have so much business under contract for
future delivery that the usual stoppages 1or
stock taking and repairs will be restricted as Tar
as possible and inventories promise to show a
remarka bly, good record for the year, although
during the opening months conditions were
quiet in many lines Forwardings of footwear
from Boston are breaking all records, and pro
ducers find no opposition to TIE higher quota
lions while still further advances cannot be
avoided if the markets for hides and leather are
maintained at their abnormal position HIDES
are sold for February delivery at current quo
tations which is equivalent to another ad-
vance, because the winter take-of will be OF
noorer quality Although some lines of cotton
goods are still quoted at former prices the gen
eraI tendency is upward, as might be expected
in view of the prices that spinners will be COM
peIled to pay for future supplies of raw cotton,
unless a violent reaction occurs in that staple
WooTens are we'll maintained. and the position
Of raw wool was improved by results at the
sixth series of the London auction sale. New
business is steadily offered to steel producers
greatest activity coming from the requirements
of the railways.