New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-03
HONEY AND BUSINESS.

Meanwhile the pressure for money became so
great that call loans were quoted az II per cent.
which is higher than has been touched in The
month of August for decade. As the pressure
necessitated considerable cancelling Of loans the
violent rise in prices OF stocks received a sud
den check. and the subsequent liquidation
brought about some reaction I'm prices OF securi-
ties and little better condition Of the banks.
When the bank statement appeared, showing
that the surplus not quite eliminated. prices
Of securities were again sharply advanced.
Union Pacific reaching a new high record. and
tho close at the best poin: Of the week. The
only development a semi-officia reiter-
alton OF the almost threadbare story regarding
| the United States Steel Corporations purchase
of Great Northern iron deposits and there
were several rumOrs Of increased dividends IL
Is evident that powerful interests concerned
in maintaining prices Of securities in the face Of
an apparently prohibitive money market. which
gives the situation such an artificial appear
ance that conservative brokers advise caution
Several houses fortunate in having large
time loans secured before the recent advance in
rates. which facilitated their operations. but
most OF the commission house business IL now
being done basis that makes 10 very ex-
pensive for those who trade on margins
High rates for money have attracted much
foreign lending through the sale Of finance bills
in the exchange market. which depressed ster-
ling rates below what f. normally considered the
gold importing point. Each week Of late ID
has been predicted that the next consign-
ment of gold that came to London from South
Africa would be diverted New York but
none has come. and hopes again raised
regarding the next shipment of 100000 in
gold which I, about due. small enga cement IN
Australia Is announced, but II will not be avail
able for some time Meanwhile local banks
have shipped heavily TO the interior and San
Francisco. regular Treasury operations show
balances against the banks almost every day,
and the Secretary OF the Treasury does not
consider that the situation calls for government
aid This Is strictly true as respects legitimate
business but Wall Street Is finding II somewhat
difficult TO generate boom in prices OF securi-
ties I'm the face Of per cent money. There
would be no difficulty regarding the withdrawal
OF cash for handling the crops ~ stock market
borrowing restricted. and II high money
does not have a salutary effect on the loan
item it may become necessary for Mr.. Shaw TO
take some action.
General business condition. are most salts
factory. the volume Of fall trade promising TO
surpass all previous records and there is no
evidence as yet that commercial progress is adj |
vsrsey affected by the abnormally high position !
Of the money market. Reports remarkably |
encoura ging from interior cities. although real
estate speculation may receive something Of a /
setback from the hank difficulty az Philadelphia. (
In many parts OF the country this real estate /
movement has been carried close to the limit /
of safety. speculation lifting prices above the /
point warranted by legitimate conditions and /
II will be well for the banks 70 exercise discre- /
ton I'm the extent - real estate commitments /
This point has been emphasized in this column /
several times during the last few months. as il /
has always been found that during a period of /
general prosperity there is an apparently ire
sist1ble temptation TO initiate market values OF /
real estate. largely with borrowed money Any |
sudden effort to realize on these speculative in /
vestments can have only one result. II is also /
important to note that international trade ball
ances on merchandise account are decreasing in /
the face of heavy foreign loans.
Sentiment in the speculative section 81 the /
cotton market has been almost unanimously in 4
favor Of lower prices. the closing days OF the l
old cotton crop year promised that liberal stocks l
would be carried over and weather on the plan |
tations indicated much larger yield than had /
been expected. Whenever there is such general /
agreement regarding the course of prices con-
sentative traders anticipate a reaction. but in |
this case the tendency seems 10 have taneible |
excuse. II is true that Southern planters are |
financially IN position TO hold their cotton IL
they see ft and the volume Of port receipts in
dicates that there is no haste 20 get the crop
to market; but the statistical position is not /
especially strong. ana domestic mills are not
celving any more new business than is made
necessary by immediate needs OF consumers
The price of wheat had declined to a point which Il
was rapidly restoring export interest when an /
advance I'm freight rates interrupted the move
ment and brought an element Of uncertainty
into the situation. The crop outlook could hard
ly be better, for there is only a practical GER
tanty Of a record breaking yield as to quantity.
but the grading OF early receipts indicates that
the quality is much better than usual
Conditions in the leading manufacturing in !
dustries are not materially altered. but in most
cases We're accentuated during the last week
At both -four and cotton mills the lower prices
mand I'm the hope that more attractive terms
would soon he available. while the higher quota
tions for raw materials in the footwear and steel
Industries Increased the inquiries from consuun-
ers Shoe manufacturers are becoming somewhat
reluctant about accepting contracts for delivery
next spring owing "a the phenomenal prices
commanded by hides. quotations Tor domestic
skins having gained another fraction during the
last week and there practically foreign
hides to be had. because of the absorption by
Europe, while the United States Leather Com
pany has suddenly made a sweeping advance in
all quotations for sole leather. Steel mills are
constantly seeking pig iron. SIS 10 being paid
Tor Bessemer at Valley Furnace. although this
can hardly be called a spot quotation owing to
the practical impossihility OF securing deliver
les during the next few months.