New-York tribune., 1907-05-13
MONEY AND BUSINESS.

ations of any size. the inertia being especially
strong IN resisting bad news. This is partly due
to the fact that quotations have already declined
heavily. the sixty most active railway shares
now averaging SIS less than year ago and S25
below the highest point record In view of
the steady gains in earnings, as compared with
last years figures. and the decreased prices, it
is not surprising that undertone OF strength
exists This power Of resistance was conspicu-
Gus last week. when a quiet market, in which
business consisted chiefly of "scalping eighths.'
was suddenly treated to another new capital
issue. many bad crop and strike reports and
aggressive attack by the short account, which
circulated most sensational rumor about one
Of the best railroads In the country. All this
had no more effect than slightly to broaden the
trading, business increasing under the stimulus
of sales by the short account, but when the week
ended with another statement Of small bank
reserves the net decline for the railway shares
scarcely exceeded II dollar. 1t is evident that
holders of securities are not alarmed regarding
the future. and spectators for the short account
may find trouble in making deliveries if COM
mitments are overexteuded.
Money is still the clement of greatest uncer-
tainty, and the mere fact that call rates are
easy does not give feeling of security. South
African gold production is at the maximum, the
April statement for the Rand mines establishing
a new daily average, and all sources of supply
will be vigorously worked this year. but the
worlds business has grown in much greater
ratio than its monetary facilities. Palliatives
provide temporary relief, notably the recent bill
authorizing more Treasury aid. but the present
Commercial! and industrial activity calls for
broader basis for credit. This country is util-
izing its banking accommodation close TO the
limit Of safety and this is what several prominent
fnancers have meant when stating that some
moderate reaction in business would exert
wholesome influence and insure a longer period
of national prosperity. Government revenue re-
ceipts continue to exceed expenditures. the sur
plus for the fiscal year thus far having risen
above $50 600 900, but deposits with the banks
are very liberal and gross gold stocks in the
Treasury have fallen slightly below the high
water mark. Money has been freely transferred
to San Francisco but on other movements this
centre has gained, owing in part 10 the late
season. Thus far s45.OO000O Of the per cent
bonds of 1907 have been refunded and about
$4,000 900 redeemed. leaving S4700O,0OO out
standing To that extent the money market
may be further relieved by the Treasury.
Trade reports discuss little except the weather
From every section come statements OF the most
backward spring IN memory. Thus far the only
effect OF importance has been retail trade in
lightweight drygoods millinery. clothing and
kindred lines but, unless higher temperature
and bright sunshine restore a normal
movement Of spring and summer goods. other
departments will be affected. Summer resorts
will be I'm position TO feel the effect of un-
seasonable weather. and when payments come
due for spring supplies in all lines there may be
difficulty unless the long expected change comes
speedily. Official returns OF foreign trade for
April show a substantial increase in exports OF
farm staples. the gain over last years figures
being chiefly due to the better movement of cot
ton. The last week has not provided a normal
Outgo of merchandise from this port however,
the longshoremen's strike causing much trouble.
Passenger ships sailed schedule time a
rule which sometimes necessitated the carrying
back of freight that could not be unloaded In
several other cases wages We're advanced.
notably at Fall River and on some railways.
The cold weather has supplied n large house
hold consumption Of anthracite coal at an un-
usually late date, and the April output only
once surpassed Building permits last month
at fifty-four cities exceeded in value those of
April. 1905, by per cent. Traffic conditions
have greatly improved. freight deliveries being
more satisfactory than at any previous time this
year. and the steel industry reports some re-
markable orders for railway supplies while pro-
duCtion of pig iron is above all records
Commodity prices have risen st further led
by farm products in which aggressive specula-
tion and adverse weather reports have COM
bined TO produce some striking quotations Cot
ton rose to the same price as year ago for spot
middling uplands almost touching $50 a bale
at this city. July was the leading option and
on some days IL seemed though spectators
really believed that the crop was hopelessIy
ruined. With the few million bales that are
saved from the wreck and the stock that will be
carried over at the end of the season II NAV he
possible to prevent Il famine next year espe-
cially if manipulatoTs force prices so high that
many spindles viii become idle this season Last
weeks quantity of cotton that came into sight
was about the same as year ago while ex-
ports increased and tallings by Northern spin !
ners We're lighter than in 1906. Wheat rose even |
more violently than cotton. although the posi- |
ton attained by the end of the week WAS nor |
relatively as high in comparison with previous !
years. Private statements of damage were CON
slant. at the Southwest the winter wheat loss !
being placed at 30 per cent or more in soma d;s |
patches. while 1t said that the excessive cold |
mad prevented spring wheat seeding and the |
Northwest would grow only corn this wear
definite was found in the official Pc !
port Of winter wheat that reduced the indicated |
Yield To about 00,000 600 bushels from which , |
further reduction must be made because tbA
weather has been even since Nav / which |
is the latest date covered by the departmant
Receipts at primary markets were again very
heavy. reminding those who are not befuddled |
by speculative enthusiasm that large stocks OF |
old wheat remain on the farms.
When tho pau ovroecona ro A..