New-York tribune., 1906-11-12
MONEY AND BUSINESS.


Inose who were inclined TO attribute the re-
cent dulness in the stock market to the ap-
preaching election were compelled to seek soma
other explanation after Tuesday and the money
market was once more the scapegoat While
1t Is true that no conservative operator would
borrow heavily in this money market In order
TO carry securities that are already high priced
the mere fact of dear money never checked g.
movement in which there was enthusiasm by the
outside public and general confidence in much
higher quotations But with little outside in
terest, the high cost Of carrying stocks is an
important market influence that is respected by
the floor traders who have provided a large
share of recent operations. Railway earnings
are steadily showing substantial gains over pre-
vious years. but numerous serious strike. are
now threatened, and others have been av.rted
by important concessions that add to the cost of
! operation Following close upon its higher
dividend rate, the Pennsylvania Railroad has
advanced wages 10 per cent. making a total
additional outlay of s15.OOOOOO yearly, which is
no small matter even for great railway svs-
TEN. Conservative men also view with some
concern the broadening speculation in curb min
ing stocks Many Of these may prove valuable
properties, but the rise in prices is not refec-
ton OF intrinsic value in all cases being largely
due to a purely speculative demand that will
be followed by quick sales for profits as soon
as there is any indication that the boom has run
its course.
Financial conditions no easier although
the money market has encountered little specu-
lative pressure. Borrowing light. but the
movement Of currency threatened TO eliminate
the small surplus reserve reported by the asso-
ciated banks at the close of the preceding week,
and there was also fear that the Bank OF
mr. nfpht NJ tppa
gold from New York by further advance In
the official rate OF discount. The outgo of cot
ton has exceeded expectations but the move
ment of grain has fallen short, and the total
supply OF commercial bills in the foreign ex-
change market was scarcely adequate to meet
the demand for remittance against maturing
finance bills that 1t was not found profitable to
renew This resulted In firm market for ster-
ling at the season when some reaction might
be expected. The remarkable demand for money
is clearly shown by the official statement of the
total amount in circulation. which is not only
far above all previous records, but So per CAPITA
above the figures of year ago after making
allowance for the increase of almost two million
in population
Reports of retail trade In seasonable lines Of
merchandise show some irregularity because or
the widely differing varieties Of westber
throughout the country. The net result how
ever. appears TO be entirely satisfactory. and
mercantile collections continue to show the i'm
provement customary when the crops are mar
keted. Wholesalers in staple lines notably dry-
goods, are receiving liberal orders but the
special feature at the present time is the de-
mand for jewelry. toys and other holiday SUD-
plies. Jobhers are preparing for next spring
seeking large deliveries from manufacturers
and 1t is the consensus OF opinion that stocks
of wearing apparel have been allowed to fall
very low because Of the high prices that ha We
prevailed That relief is in sight is tndi-
Gated by statistics OF the cost of living prac-
tically at the highest point in twenty-five years
or since present economical methods OF manu-
facture and distribution have prevailed Rusi-
ness is hampered by the car famine TINT "a
almost universal freight blockades being worse
than in former seasons even when deep snow
was the dominant factor
Comparatively little speculative interest has
been shown in the leading markets for farm
staples. which may have been due In part 10
the high money market. Cotton traders gave
that staple no support whatever and the price
was further depressed by increased offerings,
making a decline of Sc bale for spot mid
ding upland at this city In less than n month.
IT was difficult To persist in estimates OF a small
crop In view Of the phenomenal movement of
ths last two weeks. but 1t was surprising that