New-York tribune., 1906-12-31
MONEY AND BUSINESS.
went.

the chief factor In the recent sharp decline III
prices of securities that carried the average Tor
the sixty most active railway shares close TO
the lowest point of the year. Had there been a
large public interest in the market during tnis
movement the fall undoubtedly would have at
ta,ned much greater dimensions ana tho IMAM
cial pressure become correspondingly relieved.
But many of the strongest interests in the mar
ket have great faith in material advance next
month and are not sacrificing stocks at present
prices Owing to the peculiar nature OF the SELL
ing movement, the decline was most severe In
a comparatively few issues, one Of which had
the Further strain Of legal proceedings to pre-
vent proposed increase in stock; but there Is
no evidence OF any loss in earnings and the new
year will probably bring further increases In
dividends by properties that have not yet dis
tributed to shareholders any OF the results OF
the best year in the nations history. The out
look for the new year would be bright for
material advance in prices Of railway securities
were 1t not for uncertainty regarding the money
market and the large additional stock issues in
contemplation. Even in the face OF these ad-
verse influences there will be an aggressive
movement to recover the groun6 recently lost,
and IL the general public can be prevailed upon
10 take a. active part the high record Of 1906
may be easily surpassed.
The closing week of the year did not provide
nearly so much o; sensation IN the money
market as threatened by the high rates in
recent preceding weeks, bearing out the Wall
Street axiom that the expected seldom hap
pens. This directly due to special efforts
in recent weeks to strengthen the position of
the Associated Banks and to considerable liQui-
dation in the stock market at time when there
usually appears much purchasing In antic!pa-
tion of the Investment of January dividends.
Although distribution of the latter Will be be-
yond precedent this season. the downward ten
dency Of prices encouraged prospective investors
to wait for still better terms Foreign exchange
fell to position that normally starts gold i'm
ports. and the high money market indicated
that shipments were desired, yet the interna
tional situation Is complicated that there is
much reluctance regarding any action that may
tend to disturb the foreign money markets. 1t
is we'll known that any effort to withdraw gold
from London would be vigorously resisted, pos
sibly to the extent of a further advance in the
official rate of discount by the Bank of Eng
land, and this market is too heavily indebted
to London through borrowings on finance bills
in the exchange market TO risk insistence that
these finance bills be met as they mature in
stead of being renewed, as IS now possible be-
cause of the difference in parity of the two
money markets
week lacked the customary inactivity this year.
and any decrease in new orders utilized to
overtake deliveries that in almost every case
have fallen behind. It has become the excep-
tion when shipments can be made according to
specification, and In some instances the in
adequate railway facilities responsible for
idle machinery in manufacturing plants Prices
OF raw materials are maintained at the top point
In most industries, and wages will open the
new year at the maximum, yet there IS no evil
dence that cost of production has yet attained
a point where the volums OF output threatens
to be checked. Distribution of seasonable ner-
chandise. notably heavy clothing and footwear
has been well maintained by the uniformly cold
weather, which has also stimulated the house,
hold demand for fuel and it is encouraging to
tions, although money rates continue firm and
the distribution of cash I'm the farming regiona
has been retarded by the delay in moving the
crops to market. Returns of foreign commerce
are as satisfactory as reports of internal trade
fecoru dreaming imports adding convincing
evidence OF the wonderful rate of consumption.
Transactions in the cotton market were re-
stricted by the extended holiday, but specula-
tive interest did not develop when business was
resumed, ard a certain amount of stability an
pears TO have become attached 10 the quotation
v.
This represents loss OF 81 a bale comps red
with the quotation rulir,sc year ego which NAV
represent the value Cf the difference I'm sire
of the two arops and the increased activity ~
spinners Although cables from abroad nave
eXerted little influence upon the market tho
heavy consumption of foreign mills is a;tts.ed
by exports far il excess OF the movement n
ye"r ago. while the illreased dviden6s OF do
n.astic mills and iAe large contracts On h,.aa
TOR future deliyorv of cctton goods make Il evil
dent that there is no expectation * decrease
in domestic consumption of cotton. AZ the grain
exchanges the holiday feeling has been much
in evidence. preventing any aggressive opera
tions for either side of the account and limiting
fluctuations 20 small fractions. Exports OF
wheat we'll maintained. but the outgo OF
flour and corn is much smaller than a year ago.
The notwithstanding plants In the leading in
dustries Will open the new year witn so much
business on n&nd that the outoor is exceedingly
encouraging. There are few exceptions
notably at Northeastern n6ur mills where the
rate Of output 81 last week was rf.uch smaller
than year age. which may be attributed to the
loss in foreign demand for the finished produce
preference being given TO wheat In shipments
of late. Shoe shop( are we'll supplied with orders
for spring goods and fall samples are meeting
with q favorable reception. the higher prices
being paid without remonstrance. Leather is
strong and large sales of packer hides are re-
corded at firm prices. although the offerings OF
foreign dry hides have Increased In this mar
ket becauIe Of the reaction In European Drfcea