New-York tribune., 1906-07-30
MONEY AND BUSINESS.

Improvement in prices of securities received q
temporary check when the foreign situation
appeared alarming early last week, but this in
fluence was quickly overcome and prices ad-
vanced steadily. The volume Of transactions and
the better distribution of interest suggested a
stronger undertone than has appeared for some
time although commission house business did
not broaden &c an extent that indicated liberal
participation by outsiders. 1t is probable that
concerted movement against an unwieldly short
account explains most of the net gain. yet the
advance had a legitimate foundation in the most
uniformly favorable reports regarding general
business conditions that have appeared since
the crops were first exposed TO serious danger
from the elements, about two months ago. AS
usual, when the tide turns the room traders
hasten TO do likewise, and many OF those who
had a short account to cover are now on the
other side OF the market. This operation was
largely responsible for the extent of recovery in
several of the most active stocks and the market
has now lost one Of the best reasons for autict-
pating higher prices. While the general feeling
is greatly improved. there is little reason 20
hope for any prolonged advance until the public
shows more interest and the financial situation
becomes settled.
Much credit is due Secretary Shaw for the
skilful manner in which the Panama Canal bond
issue was handled. and the money market will
be benefited by the resulting addition to bank
note circulation and increased deposits of gov
ernTnent funds in the national bank repositories,
which were largely increased in number by this
operation. Yet the poor reception Of the local
municipal loan indicates that II is not a pro-
pitious moment for borrowing money. and it is
well known that many underwriting syndicates
are still carrying a large part OF former issues
of railway bonds. Erratic fluctuations in ster-
ling exchange make it difficult to judge whether
New York will obtain any of the gold now on
the way from South Africa to London. complca-
tions in Russia having caused much selling OF
American railway shares in order 20 protect
holdings of Russian bonds abroad. the resulting
demand for remittance causing sharp advance
in exchange. Fortunately this operation
not continued. and the situation abroad inn
proved sufficiently TO bring about partial loss
Of the previous rise in exchange rates
Business is SO exceptionally active for this
season Of the year that review OF the various
branches neeesstates much repetition. All
lines of seasonable goods report liberal retail
distribution. and in jobbing departments there
is much forward business that many orders
are only taken subject 10 delay. Buyers
came to the leading Eastern markets prepared
to insist upon pronounced concessions from
former prices. but are gradually realizing the
fact that producers are in the best position 70
dictate terms. In many cases higher prices are
unavoidable because of the advance in all costs
of production, and the knowledge that low sup
plies and liberal consumption make replenish-
ment necessary does not encourage haggling
over fractions. There need be little fear re-
garding the ability Of consumers to continue
paying former prices or even a slight advance
since the inadequate supply OF labor is result
ing in a higher level of wages. which means
the greatest consuming power that this country
has ever known. In some factory towns the
situation is acute that employees leave their
positions the slightest provocation. with the
certainty of obtaining work Immediately as
every other mill has the same sign on the door
Help Wanted"
1t would be unreasonable to expect every crop
statement to indicate perfect conditions, and all
estimates regarding ultimate results allow for
a certain percentage of injury each month, ac-
cording 10 the special conditions pertaining 10
the different products Hence, reports that
rust has appeared in Northwestern wheat fields
and that there is too much moisture on South
eastern cotton plantations need cause no reduc-
tion in the latest indications for the total yield
as based upon official statements of condition
News from Texas has been uniformly favora-
BILE OF late that It should more than offset some
deterioration on the Atlantic Coast Traders
in cotton options have paid little attention TO
crop reports. fluctuations showing more re-
spOnse to conditions at the mills. 1t is evident
that IL prices TO be maintained at about II
cents consumption must continue at the max
imum for the new crop year will open in a
month with liberal stocks both here and abroad
While the visible supply is not at the phenom-
enally high level II reached a year ago, It is
necessary to go be to 1899 to find much
larger figures. and at that time the price was
about s24 bale lower than IL is now
1t is not customary TO note increased activity
in the leading manufacturing industries so early
in the season. but 1905 is not bound by prece- !
dent. Supplementary fall and winter orders are
still being received by New England shoe man |
ufactureTs. and initial contracts for spring
delivery placed with freedom that testi |
ies to confidence in another prosperous season
by the Western and Southern jobbers who have
attended the Boston market. Factories have
not provided for the future by liberal purchases
of leather yet. although there Is a steady |
volume of business that prevents accumulation
OF stocks In the warehouses OF tanners. Price, |
OF hides are maintained by further heavy pur
ehases by the United States Leather Companv
Textile mills make encouraging reports mora |
new lines OF wOollens having been opened satIs
factoriy, and the raw wool market Is steadv /
though quiet. Distinct improvement il recorded
IN the cotton industry. export orders from China
the Red Sea, South America and the Phillp
pines awakening domestic purchasers 20 tina |
!Qct that it may become diticult 10 s.o,,ra Al.