New-York tribune., 1905-01-09
MONEY AND BUSINESS.

feature during the remainder OF WSeh- ~
| curities have recently passed into the strong
hands of inside interests the strong boxes OF
investors. and it is probable that this fact is
thoroughly appreciated by those who promised
another season of violent liquidation. II the
floating supply of stock is not larger than is gen
orally believed in Wall Street. any drive against
values would prove extremely disastrous to those
who contracted TO deliver certificates they did
not possess. Operations have consequently been
largely professional, except where dividends
sought investment. and this demand has been re-
strcted in the main TO the bond department,
which testies to the conservative attitude OF the
general public. Meanwhile, railway earnings
continue to make gratifying comparisons with
earlier years, and the average OF the sixty most
active railroad securities is only about 50 below
the highest point ON record. which may prove
sufficient to discount any immediate improve
ment In business. Although the recent attack
on the market failed to secure more than tenn
porary reaction. and that of only few points.
It has had the effect of checking an upward
movement that was in danger of initiating prices
beyond the point OF safety. Even with the most
skilful manipulation. it may take some time to
restore interest among outsiders, which is essen
tial to any material advance.
1t is evident that London bankers are anxious
to use much of our gold as possible in the
Europe is also endeavoring to secure large d-
rect shipments. 1t is only little over two
months since this outgo of gold began. yet the
total has reached about $3S,O00000 and prom
ises to be much larger. The situation would not
he possible II New-York were to offer any oppo-
sition 10 the movement, but funds here
abundant and easy. and bankers naturally place
their specie where 1t will return the largest
profit. Domestic demands in commercial chan
nels have not yet expanded. although 1t is prob
able that the requirements of trade will in
crease as activity expands, while limited spec
ulatlon restricts the borrowing on Stock Ex-
change collateral. That foreign needs are great
is shown by the decline in the proportion of
serve to liability In the Bank Of England to a
lower point than at any time last year. and
free selling Of securities by London In this mar
ket strengthens local rates of sterling exchange,
Notwithstanding good supply of cotton bills,
Confidence is the prevailing sentiment in busi-
ness circles at the opening of the new year 1t
Is a little premature to expect many tangible
evidences Of this better feeling but the tendency
Is undoubtedly In the right direction In a few
weeks buyers will be placing liberal contracts
for spring shipment in most of the staple lines
Of merchandise, and in many cases this move
ment would be well under way now but for the
stubborn hrmness with which manufacturers are
maintaining quotations. In nearly all the great
industries prices of materials were SO high
during the last year that there was no tempta-
ton to accumulate large stocks of goods, and
consequently there is little necessity for making
concessions IN order to work off a surplus, which
has been the case so often heretofore. Shipments
have been delayed at many points by severe
weather and low water. but these drawbacks are
disappearing and the outlook is very bright for
wholesale distribution. Mercantile collections are
fai
sharp decline in cotton has not only interfered
with payments but has caused numerous cancel
lations or postponements of orders. Doubtless
this check to progress will be only temporary, as
that section has enjoyed unusual prosperity for
the last two years.
Grain quotations responded to foreign infu-
ences in the MAN, small exports from other
surplus countries and a large decrease in the
amount on passage tending TO give strength
while limited purchases for export from this
country made It difficult to maintain such ad-
vances as occurred. Shipments of corn are some
what larger than at the same time last year, but
are still below normal. and the larger receipts
at primary markets are a constant reminder
that the last crop close to the largest on
record. Northwestern -four mills are producing
more freely than they were year ago. but this
comparison is also made with an abnormally
low figure. AS might have been expected the
oversod condition of the option market for cot
ton resulted in quick recovery of about half
cent. but takings by domestic spinners failed to
increase sufficiently to maintain the recovery
and further aggressive short selling made prices
very irregular. 1t would be great misfortune
to the cotton spinning industry IL the recent de-
cline in prices should result in any extensive
tailment OF acreage, as several crops before the
last fell below requirements and another large
yield is desirable.
Manufacturing conditions start the new year
with bright prospects. Practically the entire ca
pacity OF the woollen mills is engaged and will
continue TO be II raw material can be secured
despite the advance in price which naturally
followed unusually low supplies. Stocks of cot
ton goods are known TO be low, and as soon as
agreement is reached as to quotations the
cotton mills will have abundance of bust
ness. Just>at present there is a tendency 10 de-
lay orders in the hope of more attractive terms
but as the mills were not able to Obtain ad
vances commensurate with the upward course
of the raw material II is not to be expected thar
they win reduce prices III proportion 10 the ra
cent decline. Footwear factories are not shin
ping as actively as they were year ago ba-
cause buyers slow TO follow the advance In
price necessitstsd by the higher cost of raw
material. but there is no prospect of any reduc-
ton. as tanners are maintaining fun values for
leather. In the iron and steel Industry activity
increases with the better supply of fuel and the
railways are gradually placing contracts far the
new years business which promises to he yerv
heavy In all departments.
-
The press galleries In the Capitol at Har-
risburs are said to be ''eagelike affairs high up
"and fully half block away from the seats OF