New-York tribune., 1907-09-16
FINANCIAL MARKETS.
THE COPPER SITU4TION.
The Steel Outlook City Bonds
The Crops.
THE WEEK IN WALL STREET.

The demoralzed condition Of the copper IN
dustry the central influence in the sIocN
market during the week just past, ana fnolo
than counterbalanced the several favorable oe-
velopments having a market bearing, WIN 'ii0
result that the week was of declining prices,
especially for the issues of corporations ensa6Iu
in the production manufacture OF Iie'
Amalgamated Copper was naturally the So
under chief pressure suffering a net ioS0 "a
more than IL points during the week. Its course
pointing strongly TO the probability of the com
ing quarterly declaration being at d reouC'IU ion
from the - per cent regular estaohsheu a' '
last dividend meeting of the directors. JUST Dc
the dividends Of the Calumet and HecIa' tne
Wolverine and the Utah were cut last Weeh'
Quoted prices for the copper metal continued "
decline, both here and in London, ana on od'
urday unofficial announcement was mace tiiat
the largest producers had decided TO reduce thel
selling price from IS TO 1872 cents pound III
rather belated recognition Of the imposslplll's
of making sales at the higher level
The heaviest consumers are and for IoIis
time have been buying copper only from mana
to mouth" and the surplus stocks heIo oE Pr
ducers are now estimated at fully loo'oOo'oV'
pounds. The Analgamated Copper Company az
Cording to reports generally credited, has III con-
temptation the closing of most of its mines in the
Butte district in order TO lessen the costly en-
largement of the unstable stock Of the metal
The alternative would be drastic further cut IN
the selling price that the question or smut
ting down mines would seem to be Simply d
mand for copper has been direct consequence
of the money market stringency, which has made
il impossible for railroads and other buyers 10
borrow money except al extremely hlsh rates
and has forced the postponement of many I'M
provementS and projected enterprises, the car
rving out of which would have involved the use
Of great quantities Of copper. In view Of this
fact and of the uncertainty as to when the
money strain will be ended, a considerable
further reduction in the selling price of copper
or of T1rOdrIctiOu anpearS TO be neC6S
sary before the producers can expect TO dispose
Of any very large part of their surplus stocks
Toward the end of the week the opera tors for
the decline In the stock market turned their al
tention to the steel industry, and began a vigor-
Gus attack upon the United States Steel issues
But although the causes which have operated
to produce the glut in the copper market are
undoubtedly operative also in the steel industry,
the railroads and other consumers having been
forced principally by the high cost of money TO
adopt policy of retrenchment. there IS no evi-
dence of serious overproduCtiOn in the iron and
steel industry. and the ore producers and steel
manufacturers understood TO be prepared TO
curtail their output TO point commensurate
with the slackening demand. The days when
steel production ran riot in prosperous times.
and when steel was either a prince or a
pauper" disappeared with the formation OF the
United States Steel Corporation. which has
steadily made for stability OF price and con-
servatism in production
The overstrain on credit. caused by the rapid
ana vast business expansion IN All ClNlI!Zeu
countries. has not Het been corrected, but signs
not wanting Of its gradual easing through
the necessary MEANS of recession in business ac-
tivity. That recession in the United States IS
pursuing moderate course and seems entirely
unlikely to degenerate into the hard times
which used to follow every period of aboundng
activity and expansion, but it has not reached
its term yet. The stock market has done its
part in aiding the money situation by its severe
liquidation of the last few months, which has
ia n he banks-
Secretary of the Treasury has performed an i'm
portant service il distributing government funds
among the banks in various parts of the coun-
try to enable them 20 meet the peculiar require
ments of the season when the demands for
money for moving the crops ordinarily produce
excessive temporary stTingency, and the
gradual slaohe ming of business. which Is not at
all thing - apprehension when the
previous pace is considered, is contributing TO
the placing of the money market in position
enable another forward movement to be be-
gun by this great and 5piendidly growing coun-
try.
The most reassuring occurrence Of the week,
in its demonstration that capital is still avail
able in response to favorable opportunities for
Its employment, was the great success OF the
New York City offering OF s40.000000 41z per
cent bonds. the subscriptions for which aggre-
gated about $780, 100000 The sale also had an
other important feature, proving that the credit
Of the largest city OF the United States was still
high. The average price realized, about 102.
seems low for long term obligation OF New
York City bearing AZ per cent interest, but il
should be borne in mind that this is period of
dear money, when bargains to be had on
every hand by persons having funds at COM
mand for investment in securities, and IL may be
noted that since the opening Of The bids the
price OF the bonds has gone TO 1919 in the open
market. The success of the operation pow
erfully aided by J. P. Morgan. the knowledge
that he had agreed to form a syndicate which
would practically guarantee the disposal of the
bonds by the city undoubtedly gave confidence
to many other bidders to put in offers for parts
Of the issue.
Following the city bond sale and the pay
ment of the final instalment due the Union
Pacifics 600 convertible bond issue. the
call money rate, which had hardened owing TO
the preparation for those operations, began to
decline, and thereafter during the week ruled at
considerably lower level Time money showed
an easing tendency. although the supply is not
yet large. The foreign exchange market was
decidedly weak, demand sterling declining full
100 points in the first four days of the week
with a subsequent rally which brought the quo
tation at the close of the week to 3. cent under
that at the preceding weeks end. The decline
which was ascribed principally to the large Of
ferlng of bills against city bonds to be placed
abroad. did not bring the demand rate within
sight of the gold import rate, but with the large
offering of commodity bills which is expected
In the next few weeks It is believed probable
that an import movement of fair volume may be
seen this fall The government crop report
which appeared on Tuesday. showed moderate
FALLING OF in the condition of corn and spring
wheat but with fairly seasonable weather from
now on the expectation of good average crops
viii be realized crops large enough to enable
the United States to make large exports of grain
as We'll as cotton, and thereby to strengthen its
credits abroad.
The weekly statement of the Associated Rarks