New-York tribune., 1905-07-03
MONEY AND BUSINESS.

| the average for the sixty most active railway
shares almost touched Sill a which point there
| was such general movement to take profits
| that moderate reaction resulted. During the
| upward course of the market professional ma
| nipulation assisted by large purchases for
| foreign account and lower rates for money. For
a midsummer market the volume of transactions
was remarkably large. some days reaching
more than five times those of the corresponding
dates in 1904. While a moderate share of this
/ business was legitimate buying in anticipation
| of permanent investment of July dividends most
of the sales were for speculative account and
| found their origin in the offices of a few prom
| inent operators. On the other hand. liquidation
was more widely distributed, representing the
| holdings of numerous smaller traders. 1t was
again conspicuous that the of prices
| ignored what commonly considered most
potent market factors. Sensational advances in
commodities at this season are usually due to
unfavorable news regarding the crops, and con-
sequently tend to depress security values, but
there such coincidence this week. This
may have been due to the small share that the
general public contributed toward the aggregate
| sales, large operators would readily recognize
| the prominence of manipulation at the COM
modify exchanges.
Unusually wide variations have occurred IN
/ rates for call money, days the majority
| OF new loans being placed at per cent or less,
| while at other times the prevailing quotation
was per cent. This was largely due to the
| preparation for July disbursements the tempo
rary nature of the fluctuations being empha-
| sized by the abundance and steadiness of time
| money and the liberal demand for mercantile
| paper at unchanged quotations. Some interest
was aroused by the engagement Of $1,000 600
| gold for shipment to Paris. but the outgo re-
| ceiVed hIy ha IN
French exchange on London, and 1t soon ap-
peared that the small expectation was special
operation for the account of Italy Paris en-
deavored to get gold at London. advancing the
| price there. which shifted the demand to New
| York, and the usual triangular transfer
arranged. With the conclusion OF this opera
ton there an advance in sterling at Paris
and local rates Of foreign exchange once more
| became easy. European money markets were
| hardened by the events at Odessa and the lower
reserve of the Bank OF England Finances OF the
United States in June showed favorable bal
! ance OF ST.. 2.343,77 exceeding the good showing
OF 1904 and reducing the deficit for the fiscal
| year to S24.3O5,903.
Less than the customary seasonable duiness
| is reported in retail distribution OF merchan-
disc, which is usually nghtest in midsummer,
and in jobbing and wholesale circles there is
noted volume of advance orders that prom
ises well for fall and winter unless serious in
jury to the crops should provide more than the
average number of cancellations. Work is pro-
ceeding rapidly semi-annual inventories, and
it is certain that the first half of 1905 will make
a strikingly favorable comparison with the cor
responding months last year. This encouraging
state OF affairs is not confined to a few fortu-
nate industries. but extends to almost every
branch Of business, and is particularly conspicu-
ft,o
partments Of textile manufacture. Complete
returns of the principal measures Of trade are
not yet available but unfinished statistics OF
bank exchanges. railway earnings and CONNER
cial failures all make the same satisfactory
hibits. while the output Of pig iron will be little
short Of phenomenal. Even more noticeable
than domestic trade reports are figures Of for
eign commerce, the moderate decrease in value
of exports being much more than balanced by
the unprecedented imports.
All other commercial events of the week were
overshadowed by the violent advance in the price
of cotton. Within three weeks this staple has
risen about IS 80 bale, in the face of visible
supply larger than at the corresponding date in
any year since 1899 and port receipts are still
abnormally heavy for the season. In view of
the large surplus that is certain to be carried
over at the end of the year. it would seem as If
the crop might suffer considerable deterio-
ration without any danger of scarcity, but ma
nipulators for advance have predicted that
the official report will be very unsatisfactory,
and possible injury from heavy rains in the
Southwest was successfully used as a lever with
which TO lift what conservative men considered
quotations already excessively inflated Scarcely
less striking has been the rise in grain
but with little more reason because of the
stronger statistical position. Events abroad
were also of a kind TO give strength. Odessa
being of the leading exporting ports of Eu-
rope On the other hand crop reports are fairly
well maintained and this country is exporting
even less wheat than at the same time last wear
Manufacturing returns are unusually irregu-
lar, lack Of new orders in the iron and steel
industry making a striking contrast with the
broader markets for textiles and footwear Pro-
ducers of cotton goods unable to supply the
demand for immediate delivery, although the err
ratio movement of the material causes con-
servatsm regarding contracts for distant deiv-
cry. 1t is a good sign for the woollen industry
that the upward march of prices for raw wool
has met with an interruption. although the posi-
tion is still far beyond all records for recent
years and not OF a nature TO stimulate consump-
tion. The expected advance in quotations OF
boots and shoes for delivery next spring has
occurred without restricting new business, and
even supplementary contracts for fall may be
made at advanced figures unless the upward
tendency of the leather market receives a set
back. The iron and steel market is a peculiar
conhA between current scarcity of orders and
confluVlce In liberal demand In the fut-
ure. The lntter sentiment has prevented the
former from depressing quotations. although the
output of pig iron has been materially curtailed.