New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-29
MONEY AND BUSINESS.


eliminate for the time being last Monday when
the sixty most active railway securities aver
AGED S1O6 Is at the close. This represented the
lowest point of the year and was SO 80 below
the highest price for 1906 which was estab-
llshed on April II. scarcely more than month
previous. There was new influence to ex-
plain the decline. except excessive rains that re-
tarded but did not necessarily tnjure. the
crops and the next day, when the announce
ment Of a trust company failure was the only
important development there was a moderate
recovery, which continued until the average
was about 81 above the lowest point. As usual
after g sharp reaction there was more or less
investment. demand by those who watch for
bargain prices; but little speculative enthusiasm
occurred and when rumors OF harmony in the
transcontinentai field failed to develop anything
tangible there another period Of liquida-
ton. It is customary at this time cor year to
have what is known weather market"
and the violent speculation in grain encouraged
selling of securities by those who attach undue
Importance to fluctuations in wheat and cot
ton, that are moro often caused by manipula-
ton than by damage to the staples.
Ease continues in the money market. notwith-
standing the prevalence of factors Of kind to
develop at least a little hrmness Syndicate
operations have recently increased the loans Of
the associated banks, and the financial suspen-
sion provided an adverse influence. while large
payment had to be made by subscribers to the
Japanese bond issue and government deposits
In the national banks were drawn down TO the
lowest position of recent years. Yet the money
market has appeared utterly obliv1ous OF these
events recognizing the existence of neutralizing
influences. Bond operations were Offset by liq-
uidaton in the stock market and thus far the
Japanese business has caused movement Of
rAlAa al hv
Withdrawals OF deposits were Immediately util-
ICED as basis for an equivalent amount OF bank
notes. While 1t is not certain that this opera
ton will continue during the second call. thus
far there has been no reduction in the available
cash supply. Moreover. the expected favorable
balance daily Treasury operations has not APP
peared, the deficit for the fiscal year continuing
at the top point, so that the money market has
lost none of the gain in this respect.
Good news Is more abundant in the CONNER
cial world than II week ago, and condi-
tons satisfactory than at the corre-
spending date in 1904, but still there is much to
be desired in retail distribution of seasonable
| merchandise. Spring is unusually late in most
sections Of the country, the average temperature
being abnormally low for this time Of year. and
the amount of rainfall not only reducing the
attendance at the stores but causing conserva-
tism by the possible injury to crops. Yet faith
! in the future is undiminished, and confidence
with conservatism seems to be tho prevailing
sentiment Moro or less disappointment Is nat
urally expressed by those who prepared for an
exceptionally large trade In spring and summer
wearing apparel. many sanguine expectations
failing to be realized, yet the attitude toward
fall trade is scarcely less confident and reports
Of bank exchanges and railway earnings make
favorable comparisons with preceding years
Mercantile collections are also increasingly
prompt bills being discounted more freely, and
vigorous prosecution of work in the building
trades is an extremely gratifying feature. The
teamsters strike at Chicago did not reach the
prompt settlement that was anticipated a week
ago. but many agreements have been signed re-
gardng wage scales going into effect on July l.
An Unexpectedly rapid advance carried tho
price of spot cotton at this city up to $50 cents
a pound for niddling uplands and options were
even moro vigorously supported by aggressive
speculation. The chief influence appeared to be
the estimates Of two well known authorities, one
reducing the acreage IL per cent and the other
IL, while the season was said to average II days
later than normal Upon this basis it was pos
sible 20 predict crop OF only 100000 bales
and numerous dispatches of excessive rain in the
Southwest encouraged operations for the long
account But port receipts continued heavy
and when it became known that the leading
dated part OF his holdings there was a general
selling movement that produced reaction
Much more violent were the fluctuations in grain
Minneapolis again leading the advance because
Of light stocks at that point and the existence of
a large short account Strength was transferred
from the May option to July deliveries because
1t believed that the winter wheat crop was
being sufficiently retarded by unfavorable
weather to make extensive marketing in July
improbable While the crop may be somewhat
late this account 1t is we'll to remember thar
past reductions in the total yield have been
caused by drouth very often. but seldom by
excessive moisture
Manufacturing Industries continue IN satisfae-
tory condition. and thus far the advanced prices
of raw materials OF the textile branches have
tended to improve the situation; but II this up
ward movement is carried to excess there is
probability that the opposite influence will be
exerted So long as purchasers are anxious 10 Sc
cure cotton and woollen goods the strong
material viii help the tone. and thus far there
has been little complaint regarding the small ad-