New-York tribune., 1906-08-13
MONEY AND BUSINESS.

hONEA avn pt SIN tISt>'
Several underwriting syndicates have recently
been dissolved, with extremely unsatisfactory
results for the members which is evidence that
the supply of securities has exceeded the
demand. Were 1t not for the fact that stock
market manipulation is backed by very powerful
financial interests. similar liquidation would be
forced in the many soecialties that have led In
the artificial rise of about s6 a share in the
average of the sixty most active railway stocks.
But those who accumulated large quantities of
stock certificates at these advancing prices ap-
pear to be in position to retain their holdings
in the face of a firm money market and little
absorption by the general public. Occasionally
there is raid upon the market by the Western
group of Spectators but little long stock Is dis
lodged and the reaction is fractional In most
cases. These operations maintain total volume
of business that is unusually heavy for the sea
son. but five or six stocks supply so per cent
of the total business From a technical point of
view the market is obviously in better condi-
tion than ii would be if the securities were scat
tered among thousands Of weak holders who
might be forced to sell out in of pressure,
but the situation would be still safer If larger
percentage Of the total issue Of stocks was in the
safe deposits of investors.
Scarcely any huctuation occurred i'm money
rates until the latter part Of the week, although
variations in domestic exchange indicated that
there a growing tendency to withdraw
funds from this centre. The question always
arises at this season whether the West and
South will draw as heavily on New York as
usual, and the only significant alteration in this
movement in recent years has been In character
rather than amount Formerly the money taken
from this centre was actually borrowed, at least
a large part Of il, but in recent years interior
banks have kept such large balances on deposit
with their correspondents here that when they
needed money for handling the crops the opera
tion consisted chiefly OF reducing deposits in
New York banks. This year. according to state
ments by prominent interior bankers they are
in exceptionally good position to take care OF
their customers, and shipments from New York
may really show decrease. Nevertheless there
are three points to be considered IN this regard:
First. crops much heavier than usual and
consequently will call for a larger amount OF
money; second, real estate operations have been
unusually heavy throughout the country and
have affected resources of interior institutions:
third. as long as New York banks allow interest
OF . per cent on the balances OF interior corre-
spondents they Will continue to send money here
during the season when their surplus cannot be
employed to better advantage
Trade reports continue to show better cOnd-
tions than at this date in any previous year and
are not recorded Midsummer quiet prevails in
certain lines. but not more than customary. and
1t is especially gratifying to see evidences OF
greater preparations for fall trade than ever
before. Even the persistently firm money mar
ket has not retarded legitimate business. and in
far it is limiting speculative opera tions the
effect should be helpful few new strikes
have occurred but not OF sufficient magnitude
to cause any alarm, although the actual scarcity
of labor is a serious matter in Industrial as well
as agricultural undertakings The recent de-
cline in the brick market took prices to about
half what they were in May. which may prove
Of general benefit by encouraging building oper-
ations. which were undoubtedly restricted by the
high cost of material. The brick situation was
unnatural at the top price, and the decline was
due TO a combination Of heavy production and
much substitution of concrete AS II is well
known that many building operations were post
pOned because of the prOhibitVe cost there is
reason to look for resumption OF much aban-
dOned work now that the level of prices is lower
Option trading in cotton has increased. and the
market rules weaker, with more evidence Of
aggressive operation for the short side of the
speculative account Even after the recent
moderate decline prices appear TO be very high
in view of the general belief that another largo
crop is about to be secured especially as ex-
ports are making very poor showing Up TO this
month it seemed almost certain that the currenr
crop year would surpass all records in value
of cotton exported. the higher price MAKING nm
for the decrease in quantity. but the closing
month has proved disappointing thus IA
Failing grain quotations received a check on
account Of the largest exports of recent vsars
and latest figures show a smaller proportion 40
wheat exported in the form of flour Recei,.,r
primary markets sustain the numerous state
ments of good thrashing returns and North
western flour mills producing much more
freely than year ago. although still considera-
bly, below their full capacity.
Textile fabrics supply the only irregular re-
ports of any of the leading industrial branches
demands for WOOllens and worsteds being much
larger in some sections than others, and IL "a
also noted that several lines Of cottons are sold
well ahead, while others receive few orders ex-
cept for immediate shipment. IL is probable
that buyers In the primary markets hope that
a large cotton crop will cheaper the raw ma
ter!al and produce more attractive terms FOR
cotton goods. but the small stocks In all posi-