New-York tribune., 1906-10-15

this money market upon Europe. and tnere Is
little prospect of further help from abroad wneh
the British bank fixes the highest rate since tne
Boer war. while other foreign banks exhibit tne
same disposition to retain their present soiu
holdings and TO contract credits here "eN
tone developed on Saturday notwithstanding
favorable bank statement
Although the money market is py no iie"
easv time loans rulng considerably above the
position year ago. there is less strlhsehoS ''i~"
at any previous time this season, and larse
share of the last weeks call loans were piAceu q"
4 per cent or less which may be cohsioeieu'
about normal for the season. Yet the actuai
situation is far from normal. being compncaeeo
by the prominence of foreign influences ABOUT
which 1t is practically impossible 10 OBTAIN any
exact information AS rates became less o'
tractive to foreign lenders there was more us
position to ask settlement of maturing loahs'
which increased the demand for remittance 10
such an extent that foreign exchange quotations
advanced sharply. indicating that the supply OF
commercial bills not sufficient to meet the
demand Yet the outgo OF farm staples Is no"
very heavy, and exports of all merchandise at
the Port of New York alone for the last week
showed an increase of over 60 per cent in com
parison with similar figures for 1905. II this
movement is not sufficient to settle maturing
loans and the money market rules at point
which fails to encourage the renewal Of foreign
loans as they mature. the only alternative Will
be the return of some of the gold recently i'm
ported.
Financial conditions, accordingly. may be con-
sidered far from propitious for speculative ex-
cesses in securities. real estate anything else.
That the banks appreciate this fact is shown by
a general indisposition to make further advances
on real estate. which has had a remarkable
IN IN, cI1tfx
There is encouragement in this evidence of con-
servatism, which has come mono too soon II
general reaction is to be averted. Even the
damage in the South has started speculative
movement IN cotton that may easily be carried
too far: but, a rule. the strained financial
situation Is having a calming influence on the
speculative commodity markets, especially no.
ticeable in gran hides and coffee General trade
in seasonabe staples has broadened in response
to the colder weather, especially in clothing. dry
goods, millinery and footwear The wholesome
increase in interest has come somewhat suddenly
and caused more or less congestion, so that de-
lay in deliveries is almost unavoidable. One re-
suit Is a greater frmness IN prices. especially
where immediate deliveries are desired.
The customary selling of cotton options in or
der to secure profits on the recent advance pro-
duced slight reaction. but the upward move
ment was quickly resumed when dispatches told
Of frost in many Southern states. 1t will be
some time before definite information is availa-
BILE regarding the extent of the injury, yet trad
ers realized that the danger increased by
the backwardness of the crop and the fact that
heavy rains had Immediately preceded the frost.
Another supporting influence was the large daily
export movement, and the domestic situation
was greatly improved by the revival of interest
in primary markets for cotton goods. 1t was
rightly argued that II manufacturers were able
to advance prices Of cotton goods. as was done
IN some instances, without checking the demand,
there is reason to believe that consumption Of
raw cotton will not be seriously diminished by
the increased cost. Yet experience has shown
that there is limit beyond which certain per-
centage OF consumers cannot go, even IN the
most prosperous country on earth. while the
port business will be maintained with difficulty
with cotton at over S55 bale Results dur
ing the last week. however. We're encouraging
to holders of cotton options, although 1t must
not be forgotten that the large exports were
purchased before the price advanced TO IL cents.
Reports from the leading manufacturing in
dustries are favorable in every instance. except
that there Is the usual complaint from woollen
mills, and the recent fall IN temperature should
bring this manufacture in line with the others.
Improvement most striking in cotton goods.
buyers having changed their attitude from in
difference to anxiety lest shipments cannot be
secured IN time This feeling is warranted by
the relatively small available stocks and the
oversold condition of many mills. The export
demand is light. but does not disturb manu-
facturers who are assured OF full operation Of
their machinery in meeting domestic require
ments Ideness at many Eastern shoe shops
for the taking Of inventories does not come at a
time when trade is slack by any means, and
work will be resumed rapidly as possible
Large contracts are on hand and coming in con-
stantly, yet producers are buying as little
leather as possible in the belief that better terms
will follow the decline in hides. The increase
in production Of pig iron is not great as was
expected and October will fail to establish a
new record