New-York tribune., 1906-07-16
MONEY AND BUSINESS.

MONEI AMI bOSANEHS.
A slight recovery in prices Of securities oc-
CURED early 'ast week, but it had no foundation
in broader outside interest merely representing
| the taking OF profits by the short account. That
| element was by no means eliminated. and con-
| tinues to be the strongest feature Of the situa-
/ tiOn. Every pronounced upward tendency in the
past has received great impetus when the spec
ulative short account was excessive, but present
market conditions are complicated by the scare
| ity OF money. 1t is we'll known that large loans
are still in the hands Of the underwriters and
| more new securities are about to be issued.
which will call for funds in greater amount than
seem to be available. This is the technical diff
hculty in a market which might otherwise be
| considered warranted in advancing after an
average loss of over $40 share. But splendid
reports Of railway earnings, crop prospects and
| Industrial activity find no response in a market
| composed almost wholly of professional traders
| Rates of domestic exchange and several trans
| fers Of currency to the South suggest that this
centre will be called upon for financial assist
ance by the interior quite as much as. if not
more than, usual, and probably earlier than the
customary date. The average for several pre-
| cedng years shows shipments of about S30,OO0.
600 from New York, the movement being we'll
under way by about the middle Of August. 1t
would not be unreasonable to look for heavier
Withdrawals this year, partly because Of the
size of the crops and also account of the in
dustrial development and structural work at the
South and West that will be utilizing funds
heretofore available for agricultural purposes.
In view of this fact and the low reserves Of
local banks it is not possible TO expect ease in
the money market Some aid comes from
abroad in the shape of loans finance bills,
but Europe appears extremely reluctant to part
with gold, although the Transvaal IS surpass-
ing all records of production and the foreign
exchange market is at point where imports Of
the yellow metal are usually found profitable.
Moreover transfers Of currency to San Francisco
are made from time to time in settlement
of insurance claims, and there are so many un-
usual factors in evidence this year that the only
permanent solution Of the monetary problem
would be an extensive contraction Of loans in
speculative channels.
One Of the most disturbing elements Of un-
certainty is the possible extent 20 which the
recent activity in real estate and building oper-
ations was accomplished with borrowed money
No definite statistics available on this point.
but il is probable that vast sums are involved
at continually rising prices, especially In this
vicinity, and any pressure TO realize would pro-
duce severe liquidation, accompanied by the
customary fall in market values. Fortunately
national prosperity Is so great and confidence
so general that there is little reason 70 fear
setback at this time, and one Of the most en-
couraging symptoms is the absence of interest
on the part Of the general public In the stock
market Mercantile business is proceeding
along wholesome lines, transactions and collec-
tions being unusually good for the season. and
contracts are being placed for fall and winter
supplies not only unusually early buS Tor eX-
ceptionally large quantities
Cotton trading has shown a lack Of aggres-
siveness on either side of the account, and spot
quotations have ruled steady at about the same
position as a year ago, although there is much
less activity and more stability than at that
time. The chief drawback of late has been the
Indifference Of foreign consumers who evidently
look for a large crop and lower quotations.
Weather conditions have been sufficiently favor
able to warrant expectation of a liberal yield,
put domestic traders appear to be of the opinion
that requirements will also attain sufficient
dimensions to maintain prices. Grain quotations
fell sharply when the official report Of condition
was published. as it indicated larger crops than
most private estimates. Despite the numerous
statements Of insufficient moisture in the South
west and excessive rains in the spring wheat
region, the government statement indicated the
largest crop ever harvested with one exception.
while corn prospects practically the best
on record. and with two large crops in success
sion for both these cereals there threatens to
he a heavy surplus carried over into 1907. But
the reaction in prices was not carried very far'
traders evidently viewing grain much as they
did cotton counting on continued heavy con-
sumption even IL prices failed to show the GUS
tomary ratio to production. It was also rea-
soned that much injury might have occurred
since July l. the date covered by the official
report yet latest weather reports are all that
could be desired.
Some industrial plants are still closed for re-
pairs. and it is stated that much overhaUling is
needed after the vigorous activity Of the last
wear but the percentage of idleness is extremely
light for the middle Of July. Footwear fac
tories are receiving contracts for next spring.
although they still far from the end OF fall
and winter business, and there is much graft
fcation over the steadiness of quotations. 1t
is not surprising that buyers do not devote their
energies to securing concessions in prices Of
shoes when the hide market is higher than ever
before and apparently tending upward. Re-
cent moderate concessions in prices Of cotton
goods brought out more business, and the tone
OF the textile industries shows some improve
ment although the volume increases slowly.
Manufacturers of woollen goods apparently
of the opinion that some lines We're opened pre-
maturely. there being a disposition to retard
the introduction of the balance June showed
the expected decrease in pig iron output. but
there was also sufficient interruption at steel
mills to maintain equilibrium, and both depart
ments are now gradually returning to maxi
mum capacity. The only serious drawback
pertains to the signing of wage scales.
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