New-York tribune., 1907-08-12
MONEY AND BUSINESS.

TTe ed
gloomy because of monetary pressure and legal
steps against corporations, manipulators de-
cided that aggressive operations on the snort
side of the market offered the only opportunity
for Droft last week. Numerous room traders
and small spectators had purchased moderately
curing the recent gradual decline, and these ac-
counts were soon forced TO liquidation. especially
as calls for more margins frequently failed TO
elicit anything beyond order TO sell Ihe
banks also contributed to the weakness py call-
ing leans freely. and at the end of the week the
sixty most active railway securities were pe!o"
the level of March %, when the average was
almost $50 share below the hgh-water marx
established January %. 1906: Earnings continue
TO make favorable comparisons and investors do
not sacrifice their holdings, but spectators have
become demoralized by the financial stringency
and indefinite fears regarding the extent to Whch
LEGISLATION may go. Occasionally when the mar
ket had apparently become oversold there de-
yeloped support by strong interests moderate
recovery being aided by profit taking OF the
short account and numerous small investment
purchases but last prices We're the worst, ana IL
Is necessary tn go back TO 1904 to find the aver
age lower.
Scarcity Of money is the dominant factor just
now in all departments. and 1t is explained by
the general statement that every class Of busi-
ness is over-extended Recent developments
suggest that this may be the case I'm many mer-
camille and industrial lines. but not in Wall
Street Hardening of rates at this time is sea-
soma bic, the banks must prepare for heaNy
Withdrawals by the interior. lower domestic eX-
change on New York promising earlier transfers
than usual 4 small export of gold 10 Holland
and shipments OF currency 20 Chicago and san
Francisco supplied tangible loss of s1.5O0.OoO
last week. while Sub Treasury operations were
Fov,
traction by the national banks Is the fact that
the Controller of the Currency makes call Tor
statement of condition a about this time. Based
on such Information as Is available II seems
probable that the net loss TO the interior during
the rest Of the year viii be about S50.OoO,o0o
and 1t is gratifying to note that the Secretary of
the Treasury can release an equivalent amount
,,Ithout embarrassing the federal finances. Were
II not for this relief which may be given very
soon the monetary situation would be distress
ing Even with this artificial element the outlook
Is by no means clear. because foreign conditions
are also stringent and it may be found difficult
to keep the money in this country after taking 1t
ont of the Treasury. There still remain about
81 ooo 600 bonds that may be presented for re-
demption and the course Of sterling exchange
shows some lending on finance bills. but the
money market needs more than temporary pal
liatives.
New enterprises are not now undertaken or
extensions made with the rapdty that charac-
terized this nations development during recent
years and it is along these lines that the money
market must get definite relief. ExtravaganceS
and high cost of necessities have reduced the
surplus formerly available for lending either by
individuals or the banks. but there is as yet no
evidence of retrenchment in this respect Some
complaint of slow collections is not surprising.
but repors from all sections Of the country indi-
cate little difficulty of this kind, and further i'm
proven1ynt should follow the marketing of crops,
which is now fairly started Midsummer condi-
tions exist I'm many retail lines. although there is
still good movement of light fabrics. acceler-
ated by clearance sales. Country merchants and
buvers from the smaller cities are in all the lead
ing iobbing markets. placing liberal orders for
fall and winter goods The confidence that Is
shown by this forward business would dispel
pessmistc sentiments but for the constant sup
pIy of gloom emanating from the stock market.
Beyond the confines of speculation there is little
uneasiness regarding the future. a large volume
Of trade being assured for the rest of this year.
while many orders cover deliveries after Jan
nary / Several new labor disputes have arisen.
| and much inconvenience and loss VIII be sur
| fered unless prompt settlements are reached IN
the larger disag greements. According TO the terms
| announced by the concation board, wages in
certain branches of the iron and steel industry
will be advanced. adding so cents ton to the
cost of producing bar iron. Statistics of pig iron
production when the month opened showed a
slight decrease in the rate. although the number
| of furnaces increased. Additional plans for the
Steel Corporations plant at Gary raise the pro-
| Dosed expense to S120.000.000 AS this is to be
taken out of surplus earnings, 1t obviously means
| a great addition TO the value of the property.
Cotton rose to within ten points OF the high
position attained by middling uplands last month,
drouth in Texas. The market has lately en-
countered more than the normal supply of sem
| sational reports. and some interests were
active in the trading, but calm reviewers in the
| South still express confidence In yield OF H.
900 600 bales While that is much less than last
years phenomenal crop, and consumption is now
| beyond precedent, there will be a surplus on
September that hardly seems to warrant prices
| s13 so higher q bale than year ago. Wheat
declined sharply in response to favorable reports
from the farms until the official report appeared
on Friday. reducing the estimated yield to $685.
| $50 900 bushels. Losses in condition in Mime
| sofa and the Dakotas responsible for a
lower figure than was generally expected. other
| grain prospects were we'll above normal, and the
| total value of farm products this year promises
to equal the figures of 1906, gains in prices fully
offsetting decreases in quantity.
| "
| Police Commissioner Bingham might heir