New-York tribune., 1905-07-10
MONEY AND BUSINESS.


the average of the sixty most active railway
shares attaining new high records for the sea-
son, despite much liquidation and occasional re-
actions, until the general level In now WITHIN
So of the high-water mark established htue
less than three years ago. Although a remark
ably large advance has occurred recently In the
market value of most securities, II is extremely
doubtful whether fundamental conditions have
changed at all. But it has become matter of
historS that certain amount OF semi annual
interest money must seek some form of invest
ment n July, and the weather is almost in
variably favorable during June for the crops
which -re supposed to be most potent influences
in determining the value of railway securities.
In order to take full advantage Of this antici-
pated demand for stocks, the professional ma
nipulators have undoubtedly lifted quotations
far beyond the position they would have at
tanned If left to the normal factors of supply and
demand. The last two weeks have furnished
snguarly strong evidence regarding the pro-
fessionalsm of this market The advances that
occurred at the commodity exchanges were so
violent as to threaten serious loss Of business
to the railways. but there was no general public
in the market to be frightened into rquidating
holdings of stocks margins.
Another small engagement Of gold for export
to Paris did not attract any particular attention
in financial circles, 1t generally con-
ceded that interest in transit paid in order
to secure the movement. Both call and time
money were In greater supply than demand at
reasonable rates. and commercial paper can be
placed very cheaply at this time although the
sharp decline in proportion of reserve to liability
in the latest report of the Bank of England in
d1cates that long continued abroad is by no
means certain In so far as foreign conditions
affect this market, it may be worth while TO
consider the possibilities suggested by the posi-
tion to which the price of cotton has been adj
vanced. In the fiscal year just ended gold
ports from this country were very heavy, not
withstanding the fact that cotton shipments
were unprecedented. European mills will not
buy the same quantity Of cotton on the new
basis, and the foreign exchange market will be
less literally supplied with cotton bills unless
very material reaction occurs in the price of that
staple. AS usual, the fiscal year starts out with
a considerable excess Of expenditures
ceipts on regular Treasury balances. but this
movement will be'offset by Withdrawals OF pub
lie deposits from the national banks.
Business is holding up remarkably we'll for
this season of vacations. inventories and every
possible postponement and interruption. From
many sections Of the country there come re-
ports that orders cannot be filled, and while this
applies particularly to a few industries,
there is a growing disposition TO arrange for
distant deliveries which emphasizes most clearly
that optimism is the prevailing commercial sem
| dment. One helpful influence is the absence OF
any serious struggle between employer and en-
ploye. This active employment of labor In
having undeniable effect on the consumption
of all the necessaries of life. maintaining prices
Of commodities and facilitating mercantile coll
lections. The temperature has also contributed
to good results in the business world clearance
sales of light weight textiles of all kinds meet
ing with Unexpectedly satisfactory results. A
few figures have been received regarding the
half years resu--s. Including a most gratifying
decrease in liabilities of failures while the gains
in bank exchanges were phenomenal but proper
allowance must be made for the greater activity
in the stock market Incomplete returns of for
eign trade indicate that there will be no cause
for complaint regarding the extent to which this
country has consumed foreign products.
Conservative estimates regarding the official
report Of cotton condition were much too high
and remarkable degree of success attended the
efforts of the leading specuator for the long ac-
count. Traders who had been most skeptical
regarding the utterances of this operator were
the most eager to cover short contracts when
the government figures appeared on Monday
suggesting the possibility OF crop little in ex-
cess of 100000 bales. Although the subse-
quent weather reports were considered favor
able, prices continued to rise until thew were
far above the position at the same time last
year. but best prices were not maintained Wheat
also bounded upward until a very high position
attained but frequent favorable dispatches
from winter wheat States where harvest was in
full progress had d depressing effect and the
practical cessation Of exports was also an argu-
ment for less inflated quotations A sudden in
crease In the receipts of at primary mar
kets suggests that producers are becoming more
confident regarding the current crop and are in
clined to market their holdings of old corn
The best manufacturing news still comes from
the textile industries. prospective purchasers
exhibiting considerable anxiety to place orders
for future shipment of goods, as they are nat
| urally fearful that higher prices Will follow the
upward tendency of the materials But
cotton spinners are not at all eager TO under
take more than they can safely fulfil so that
contracts are only made to cover goods against
supplies Of raw material already at the mill or
under contract There is naturally more or less
uneasiness regarding the ultimate position of
cotton, for 1t is certain that machinery cannot
be maintained at its present vigorous activity
with the raw material selling at over IL cents
a pound. Scarcely less violent has been the rise
in wool. although less is heard Of speculation in
that staple. Reports from Western ranches
however, indicate that there has been consider
able buying of this nature, and the auction sale
at London Is watched with close interest nv
dealers who are carrying large contracts for the
new clip at top prices. The expected advance in
prices OF footwear has occurred and shipments
from Boston continue to exceed last years In
the iron and steel market the chief deyeIon-
ment pertains to the labor situation sartous