New-York tribune., 1906-04-16
MONEY AND BUSINESS.


sidering the abnormal influences bearing upon
Wall Street. IL must be regarded as evidence
that stocks are in strong hands when they do not
respond more readily to the abnormal rates that
have recently prevailed for call money. Total
transactions for the week fell considerably be-
hind those of a year ago. and 1T was again
noticeable that extensive liquidation occurred
in the coal properties, although miners and op-
orators continued to disagree. Foreign influences
were much in evidence. high money depressing
exchange, which brought gold from the other
side and caused some recovery in prices of
stocks, whereupon London sold its previous
purchases of securities. advancing sterling rates
above the point at which more gold could be
secured in London.
The fact is gradually becoming recognized. as
was pointed out in this column several weeks
ago. that the money market is established on a
much higher basis and that the recent strih-
gency was by no means entirely due 10 the
temporary pressure in connection with quar-
terly settlements It is necessary to go back
several decades to find as high rates for call
money in the month of April as have been
quoted this year. and the permanent nature of
the stringency is indicated by the readiness
| with which borrowers have paid 9 per cent or
more for time accommodation. When the aver
age daily rate for call loans to 20 per cent
and Canadian banks TO send currency hither'
and more lending of foreign credits depressed
rates for sterling exchange to the lowest point
since December. 1908. which in turn started
endeavors to secure gold in London, with the
result that the price OF gold there also rose TO
the highest point since December 1908, and
shipments of only a few million dollars worth
of the yellow metal Were arranged. Although
this specie was not Immediately available in the
local money market, it helped TO restore more
nearly normal quotations. but like all the other
temporary expedients, these international oper-
ations have not altered the fundamental con-
dition.
Fortunately legitimate business has not suf-
fered from the monetary difficulties, mercantile
collections being fully as prompt as usual at
this season, and the ready demand with which
merchandise is absorbed has lifted the general
level of prices TO the highest point in twenty
two years. AS this is not in any large degree
due to other speculative manipula-
ton. it must be recognized evidence of
national prosperity Even the unusually mild
winter produced increase I'm bankrupt
cies in the trades most affected, which indicates
that they entered the season in sufficiently
strong financial condition to withstand the press
ure. Reports are most encouraging from real
estate and building operations which started
up all the country as the weather became
propitious and it promises to be the most
markable season record in this respect. In
view of this fact it is not surprising that prices
of lumber and kindred articles now stand at the
highest point since 1874. The general trade
situation shows remarkably little effect from
the coal dispute testifying to a feeling of con-
fidence that settlement will be reached
One of the best features in the markets for
the leading farm staples is the steady inquiry
for export. This continues 10 absorb large
quantities of cotton, despite the abnornally
high cost and that commodity has had the
further support of an aggressive speculative
campaign. which is said to be based upon in.
formation that the next crop will be materially
reduced. On the other hand one of the leading
Southern papers has made its usual spring cam
vass of the situation and reports an increase
over last years acreage. while the distribution
of fertilizers continues heavy. Complaints re-
garding the scarcity of labor may be met by
reports that immigrants are going South in
large numbers, and while it is probably true
that this years crop will be the most expen-
sive ever raised there is no evidence of re6uc-
ton in quantity. Early weather conditions were
unusually favorable this year both On cot
ton plantations and grain fields, but excessive
rain and late frost have brought the condition
back to about normal on the whole and early
sown wheat that was injured on the Pacific
coast mas peen replanted. SO that the quantity
will not be reduced. although here again the
cost of production has risen The advanca in
wheat quotations after the government renort
appeared gave evidence of the general heuaf
that the indication would be more ravo-ob1a
but the Produce Exchange statstician figures
out a yield of 473,249OOO bushels NJ ,r;r,.u
wheat, which exceeds all previous records tbs
largest actual crop heretofore having been 45s
S34. sol bushels. in 1901
No change of Importance is noted in tho A.,
dustrial situation. little idle machinery ber
reported except where new labor struggles bo,.
arisen. and there is prospect of settlement in
most cases. Latest information regarding the
cotton spnners is favorable. aside from the
threatened strikes buy = in the primary mar
kets making less effort to secure concessions.
and the stubborn strength of raw wool main
tains woollen goods despite the fact that it will
be some weeks before the usual fall orders are
placed by clothing manufacturers 1t would
not be surprising If the end OF orders on hand
should be reached before new business ar
rived I'm which case some of the mills will he
compelled to suspend work for a time This is
not an unusual occurrence and should OCCASION
no alarm Reports from the footwear indu.trv
are favorable prices ruling steady I'm all de-
partments from hides TO the 1nished nroducts
although the markets are more uuiet Tba an,
put of pig iron is beyond all preceden, and rao
ord breaking shipments of structural sta.I ga
rails are not equal TO the requirements -, g.
sumers.
Senator Stone accuses President Roos.v.,. -,
being n backslldine reforrner Tba c.