New-York tribune., 1907-11-18
MONEY AND BUSINESS.

stocks falling below SIS, against about SlZl
the highest point record. which was reached
in January, 1908. The further decline was not
a surprise to well posted men in Wall Street
because speculative support is not possible dur
ing severe financial stringency. and the urgent
need of funds continues to force liquidation
Sales Of securities were also necessitated by the
calling of loans by local banks in preparation
for the withdrawal OF Treasury deposits That
so much stock has found market at this time
is a most encouraging evidence of confidence
among investors. more boarded money coming
out each day for the purchase of odd lots upon
which the interest return is certainly most at
tractive There is little alarm regarding the
possible reduction of dividends. for earnings con-
tinue larger than a year ago; but even II some
roads are compelled to make smaller returns the
fall in price surely discounts any change that is
probable. Trading in the Stock Exchange has
fallen so low however. that membership was
sold for $4,000 which is $4,000 below the hish
record touched both last year and in 1900. and
lower than any recent quotation, with the single
exception of one sale four years ago.
Monetary conditions at this centre steadily
improve. but the pressure has gone throughout
the country. and It will take some time to re-
gain normal rates of interest. New York is
shipping funds to the West and South. giving as
much relief as possible. and the mid-month
payros were met more satisfactorily than at
one time seemed likely. As two weeks inter-
vene before this need for cash will be felt again.
and gold arrives every steamer. the settle
ments on November 80 are regarded with com
parativc equanimity. over S66OOOOOO in goid
has been secured abroad and the attitude IL
Europe does not threaten any immediate cessa-
tion Of shipments. Negotiations for large
movement from Paris were broken off. but 1t Is
probable that the same result will be attained
by Withdrawals from London. France assisting
England to an equivalent extent. Receipts OF
specie are greatly facilitated by the increasing
outgo of wheat and cotton, November promising
TO establish a remarkable record in that respect
Government aid has been extended until S22I,-
0OOOOO is on deposit with the national baLks.
and it is probable that the proposed Withdrawals
from this city are for the interior. Banknote
circulation also increases. and plans are being
made for the issue of Panama Canal bonds that
will either furnish security for more circulation
II taken here or will bring in gold IL placed
abroad. Meanwhile the premium on currency
has fallen after serving good purpose in bring
ing out many millions of boarded money.
General business continues To make an orderly
retreat. There IS no Generalization, but con-
servativc tendency to curtail operations within
tho limits OF safety until the situation is more
settled Much Industrial activity has been re-
duced mills partly closing operating short
tllc, ana II u tNpcCldilE III tilN manu-
facture Of luxuries that labor is being forced to
take less pay or be idle part Of the time. In this
respect tho wage earners usually cooperate
with employers. appreciatinG the necessity of re-
trcnchment. and few reductions in pay are re-
sisted. Thus far there is no great army OF un-
employed, and the savings Of many prosperous
years should prevent any hardship. provided the
period Of readjustmcnt is brief expected.
All the factors now contributing TO the relief OF
strIngency in the money market should soon
prove effective, and unless confidence is more
shaken than at present there Will be an carly
restoration Of cancelled orders. One of the best
features Of the situation is the increasing
port trade which has done much to prevent
more pronounced decline in prices of comnOd-
tiles. In some departments of business the fall
is noteworthy. but taking all the necessaries Of
life the average reduction in cost is only or
per cent from the highest of recent years. Quo
tations maintained in the iron and steel in
dustry by a material reduction in output. pig
iron furnaces producing at a lower rate than at
any time in over a year. while textile mills and
footwear factories also avert overproductlon by
restricting operations to the actual business in
sight.
Some reductions from best prices have
occurred at the commodity exchanges the mon
etary influence being felt there also in forced
liquidation. Efforts to hold cotton are only
partly successful, and the Increase in port
cepts at about ~ cents testifies to disappoint
ment among those who were striving for Is
cents. As the cotton comes 10 the seaboard
more freely 1t Is promptly sent abroad exports
last week alone being valued at about SIT 600 600
Takngs by Northern spinners. however, were
only half those of the week last year. and
continued conservatism as to domestic buying is
to be expected A statement by Ellison that mill
stocks abroad were double those Of year ago
did not check the outgo. which still shows de-
crease OF 465.000 bales compared with the ex-
ports from September TO date in 1906. Even the
obvious effort of the speculative short account
in December options to secure spot cotton
the plantations did not prevent net decline of
81 a bale for the week in average price. The
grain markets easier favorable weather
beng reported for handling the current crop and
for preliminary work on the next winter wheat
yield There was.also much disappointment be-
cause exporters were disposed to defer pur-
chases on a falling market although the large
movement abroad last week indicated that ship
pers were liberal buyers in earlier weeks. Ex-
elusive of Canadian business, exports of wheat
and flour from the United States exceeded the
outgo in the corresponding week last year by
about 1000 900 bushels adding IS, 100000 more
to this countrys foreign credits Western re-
ceipts are still very unsatisfactory. chiefly be-
cause of the scarcity of cash with which TO move
the grain Some of the Northwestern farmers
are accepting exchange on the nearest cities
but the movement is badly hampered by the lack
of currency. Receipts of wheat and corn at pri-
mary markets last week were about A. 400 OOO
bushels less than in 1906.