New-York tribune., 1906-08-20
MONEY AND BUSINESS.

not surprising that those stocks rose aboVe an
previous records. but the sympathetic movement
throughout the list was hardly warranted az
though rurnors were circulated of other increased
dividend rates about to be announced. some
traders explained the operation as natural dis-
tribution Of profits, but many conservative men
believed il was merely another attempt TO revive
public interest, which has been eonsplcuousiy
lacking during the recent manipulated advance
ARRANGEMENTS TO increase the capital STOCK Oh
prouinent railway systems have become so COM
mon as to attract little attention, wnicn is only
natural In view Of the rapid growth OK trafho
reouirements calling for extension of facilities
beyond the expense that can be properly laio
aside out Of earnings II is undoubtedly the
mart OF wisdom In a rapidly developing nation
such as the United States TO have the railways
grow Nm with the country. the pace having been
set in this respect by the Pennsylvania III Is
obvious that In all such cases II may be sone
time before interest IS earned on money spent
for improvements, but proper provision for the
future will have its reward In greatly Increased
earnings hereafter, and the mere fact that a
capitalization is large IS no longer cause for
anxiety This is increasingly nation Of big
things and the limit Of its development Is not
in sight. Nevertheless. in so far as the market
values Of securities are concerned, many Of the
leading properties now at a high point In
comparison with the position Of the money mar
ket which must be considered in determining In
trinsic values at any given date.
Downward fluctuations in sterling rates
a natural response 20 liberal offerings Of grain
and cotton bills in anticipation of the heavy ex-
ports that are practically assured. and If the
movement is not offset by remittances against
maturing finance bills IT Is probable that gold
will be imported, but thus far actual en-
gagements known Currency has gone 70
St. Louis unusually early, which is attributed
to the marketing OF some new Texas cotton
much sooner than expected, and it IS Sig
nifcant that the first call came from the South
instead of the West some bankers considering
this an Endorsement Of the statement that lit
tie help will be required from New York In
handling grain. 1t is much too early. how
ever to settle this problem and the low re-
serves Of the associated banks suggest the adj
visibility Of reducing commitments in specu-
lative channels In order to be prepared for
the requirements OF legitimate business Thus
far the Secretary OF the Treasury has made
little increase IN deposits OF public funds with
national banks and regular operations for the
month thus far show a balance against the
banks of about S5000Oo0
Both domestic and foreign trade continue 70
make gratifying comparisons with earlier years.
All measures of the volume OF domestic business
indicate favorable progress, and reports Of COL
pected. considering the position Of the money
market. Some OF the people who were loudest
in denunciation OF the food OF immigration a
few months ago now complain of the scarcity of
labor and do not consider themselves incon-
sistent. Yet the claim that the only difficulty is
one OF distribution hardly be allowed when
farm hands needed in every agricultural re-
gion from the grain fields Of Manitoba to the
cotton plantations of the Carolinas. and from
the iron and steel region 70 the textile mills
in New England. II seems as If eighty-five mil
lion people were inadequate to handle the un-
precedented business of the United States. De-
spite some considerable decrease IN value Of ex-
ports OF farm staples IN July. there was a good
gain In the aggregate compared with the
same month last year. which means substan-
tial improvement in shipments Of manufactured
products.
A material decline has occurred in prices Of
leading farm staples. weather conditions on the
whole being encouraging. Some evidence OF
support by the Wall Street element was noted
in cotton options. but this proved of little avail
against the general disposition Of traders TO
unite on the short side Of the market During
the last week there has been more aggressive
selling of cotton than at any previous time,
and prices touched the lowest position Of the
season. although showing little change COM
pared with the corresponding date last year.
After such continuous fall It would not be sur
prising 70 note recovery especially If there
should appear a reasonable increase In foreign
| demand. OF late. however, shipments abroad
have been unsatisfactory. Wheat prices have
continued to establish new low records for re-
cent years. although heavy receipts az primary
markets were offset to some extent by larger
exports. Corn is almost beyond the reach OF
danger from frost. high temperature bringing IL
rapidly to maturity.
1t is gratifying to note that the only tardy
industry of the leading occupations Is beginning
TO show commendable disposition 70 initiate
the great activity elsewhere. For some months
| textile fabrics have resisted the general ten
| dency and it is especially encouraging TO find
more activity in cotton goods. despite the down
ward tendency of prices for raw material This
cheapening in cost of manufacture would natu-
! rally tend TO delay business. but it is evident
that stocks must be replenished. More cancella-
| tions are noted in woolen goods, but this is not
so bad it sounds. owing to the fact that there
was general disposition TO overpurchase when
new lines We're opened, and buyers are now cut
ting down their orders to actual needs. There
is some irregularity. with best results In wors-
teds. and least satisfactory reports concerning
medium wool goods but the net result is sat
isfactOry Footwear orders run far into the
future and distinct improvement is noted In the
leather market. There is some fear that the
output at steel mills may be reduced by ina bill
ity to obtain sufficient pig irOn which hard
| ly be considered an evidence of reaction, as II
is due to a combination OF vigorous demand for
finished products and the lack Of sufficient labor
in certain departments.
|