New-York tribune., 1906-04-09
MONEY AND BUSINESS


After some recovery last Monday the average
OF the sixty most active railway shares gradu-
ally responded TO abnormally high rates for
money Had the market been less professional
and the outside public more heavily involved
the highest April quotations for call loans since
1882 would have produced a severe reaction.
Manipulation was frequently in evidence some
specialties being sharply advanced for a time,
but these movements were usually followed by
similar reactions Considering the uncertainty
regarding the anthracite coal situation. securi
ties Of the properties most interested we're re-
markabIy we'll maintained. and II Is probable
that the best feature of the present stock market
is the fact that comparatively few shares are in
the hands Of weak holders. Aside from the rate
for call loans and the coal situation. influences
are most satisfactory. London buying freely
most Of the time while statements of earnings
and other normal market factors contained
nothing of disquieting nature. The associated
banks reported a deficit in reserves below legal
requirements, and, as usual after the worst news
was out, prices Of securities rallied.
Although it was expected that the money market
would be firm on account of April dividend dis
bursements results exceeded expectations. the
pressure continuing longer and attaining greater
dimensions than had been expected. There
was no special inquiry in speculative channels
but the requirements for quarterly settlements
were augmented by heavy demands from the in
terror and some absorption by the Treasury.
Work on cotton plantations began unusually
early this year, which started a movement OF
currency to the South. and further transfers
were made to the Pacific Coast. Foreign capi-
taIists have shown a readiness to lend credits
In this market by the sale of finance bills OF
exchange. but there is some reluctance about
parting with the yellow metal While IL is
doubtless true that special conditions contrib
uted materially to the strength of call loans in
the last week, there is a fundamental element
of strength in the financial situation that prom
ises to maintain rates far above the average in
recent years. Yet the amount of money i'm cir
culation showed increase in March TO an av-
erage of $31 75 per capita, while the total stock
in the country, including Treasury holdings
rose above $4,000 100000 for the first time in the
nations history, ard gross stocks of gold in
government vaults reached the unprecedented
sum of $7765OO,OOO.
In so far as the distribution of merchandise Is
concerned. and the general level of prices paid
therefor, the spring season of 1906 has opened
quite as satisfactorily the most sanguine
could have wished Retail sales of drygoods
millinery and kindred lines are heavy through
out the entire country and urgent orders are re-
ceived by wholesalers and jobbers to forward
supplementary shipments, while it is the excep-
ton when any complaint is heard regarding
mercantile collections. Yet the future is not
clearly defined chiefly because of labor troubles
that may attain sufficient proportions to un-
settle confidence Thus far no such serious con-
dtion exists. and it may be possible to settle all
pending controversies before business receives
severe check, in which case the only effect would
be whatever increased cost to the consumer re-
suits from such concessions "a employers NAV
be compelled to grant. A. any rate it is safe to
say that the usual spring coal discounts will not
be made this year and the cost of BUILDING,
seems to tend upward through more expensive
materials, even il no increase is granted i'm the
various wage scales now under discussion PARTLY.
because of the almost uninterrupted progress in
the last ten years there is an increased tendency
toward conservatism that is a hopeful sign
No change has occurred I'm The general posi-
tion of agricultural products preparations for
farm work proceeding satisfactorily. and the
average fNr the season appears to be earlier
than last year. Speculative interest revived at
the leading cotton exchanges which checked
the downward tendency Of quotations and forced
considerable covering by the short account
Statistically the situation is stronger stocks Of
American cotton i'm ali positions having declined
much more i'm recent eeks than in the CORE
spending period of earlier years while the do
meStiC situation Is improved by larger exports
than port receipts. the latter being smaller than
last years. while exports exceeded those of the
Same week in 1905. II the market were not al
ready at an abno"mally high position these
might be considered reasons for an advance
Soft roads and outdoor work have contributed
To the decrease in receipts of grain at primary
markets. but a more important supporting in
fueuce was tho better tone Of foreign markets
and the increased interest shown by exporters
II is also noteworthy that dome site flour mills no
longer report decrease of 100. 600 barrels com
pared with the weekly output year ago.
AS vet the fuel situation has caused no in
crease I'm the proportion of idle machinery I'm the
leading manufacturing industries. most plants
having prepared for trouble to the extent Of
their storage capacity, and the only concerns
that are at all disturbed those entirely de-
pendent upon anthracite coal Most encour-
aging reports are received from Eastern foot
wear manufacturers. who secure liberal orders
DESPITE the exceptionally high position of prices
md this abundance Of forward business stimu-
lstes the demand for leather, which in turn sus-
tains the hide market In the last week I'M
portant contracts have been placed In all de-