New-York tribune., 1906-11-19
MONEY AND BUSINESS.

High money rates caused little liquidation
in securities at the beginning Of last week but
the downward movement was soon checked and
a sharp recovery occurred with as little reason
as has characterized other variations OF late
There was nothing tangible upon which to base
any change in the course of the market although
numerous rumors were circulated regarding in
creased dividends and special privileges to stock
holders, The widest runors of the week were
about ST. Paul, and that stock led in the ad-
vance, while Reading and Union Pacific were
also extremely prominent Railway earnings
continue 10 make favorable comparisons with
previous years, but a market influence this
is nothing new, while the position Of the money
market did not encourage proIniscuous specula-
ton. and the outside public contributed very Iit
tie to the large total daily transactions Specu-
latlon in mining stocks on the curb attracts much
attention, the supply of new issues being appar-
entity unlimited, and the stock transfer tax Is
! just as large as IT was last summer when curb
brokers attributed TO It the stagnation in these
low priced properties. The important
event in the outside trading was the decline in
price of Standard oil TO the lowest figure of
recent years. which was attributed to legal pro
ceedlngs. Yet the usual quarterly dividend Of
$40 a snare announced
After a report by the associated banks show
: ing . deficit below the legal reserve limit and
a 't' ''"fh by the Secretary of the Treasury
t. 30 :elief could be expected from the gov
eFnlnent it was natural that rates for money
should high. The banks can always
strengthen their position by advancing rates to
a point that will reduce borrowing and this
done last Monday when the quotation for
call loans rose to 20 per cent. Even term ac-
commodation on the best security was granted
only by the payment of premium above
the legal maximum rate and it is probable that
these conditions will continue until the usual
return Of funds from the West and South
Owing to the slow marketing of grain and the
activity OF all kinds Of trade at the West re-
ceipts from that quarter may be somewhat
tardy but rates of domestic exchange on New
York gradually turning in favor of this CEN
ire and the movement should be heavy by the
this money is another question. Leading for
eign banks are striving to strengthen their posi-
ton, and 1t is certain that if the local market
gains enough cash to restore normal money
rates Europe will take hack part of the large
sum II is lending here.
There seems to be some difference OF opInion
as to whether the present inadequate transnort
ing facilities should be attributed to the milea pa
or to the rolling stock. but there is no question
that delays in shipment are causing incon-
venience and some cancellation of orders Press
other merchandise to lake and river points be-
fore the close of navigation, and good foreign
demand for cotton and grain makes it desira BILE
to move those staples to Gulf and Atlantic
Coast ports rapidly as possible while there is
also seasonable urgency TO secure structural
steel and other building materials before cold
weather handicaps their In addition. the
movement of holiday goods is beyond all prece-
dent. AS farm work is concluded there is less
complaint regarding the supply of labor al
though demands for increased wages threaten
TO add TO the cost OF production in many lines
one or the most gratifying developments of the
week is the increased promptness with which
payments are met, especially in reports from
cities where collections have been very slow
As usual when there is too much company in
the snort account, it did not take much TO start
recovery in the cotton market No change
occurred in the actual situation the crop being
practically all beyond danger while consump-
tion continued heavy by both domestic and for
eign spinners. but there was no Improvement in
that respect. Port receipts also maintain the
large movement that has been In progress for
some weeks and shipments abroad We're heavy
while the trade has almost agreed on an esti-
mate or over l2.0GDl0OD bales for this years
yield But as soon the market showed the
much haste TO take profits by the short account
that the rise became pronounced, amounting to