New-York tribune., 1907-11-11

as the bonds find market, but the heavy selling
depressed prices OF these per cent bonds peioW
other securities Of similar standing, anu IN
yestors secured attractive bargains. AS the
technical position of the market improves and
railway earnings continue to show gains over
last years figures II is obvious that speculative
purchases on large scale are prevented only by
the refusal Of the banks to provide funds Hence,
trading is light and the last sale of Stock
Exchange membership was at 100000. or $4,000
below last years high record price.
Money is not becoming easy by any means, but
the pressure is diminishing, some time loans
being negotiated at 10 per cent and call money
averaged only 20 per cent last week. European
banks did not resist the movement of gold to
this country very earnestly until S4OoO0.00O had
been engaged, but the Bank Of England ad-
vanced its discount rate to per cent on Thurs
day, the highest quotation since 1873. and Con-
tinental banks responded. More gold was Sc
cured later in the week on account of the pre-
MUM on currency here, but the movement un-
dcubtedly received check. factor OF i'm
portanCe in connection with this gold movement
that has been overlooked is the peculiar condi-
tion of the foreign exchange market due to the
fact that the usual large sales of bills in an
ticipation of cotton and grain were not made
this summer Doubtless this was chiefly due TO
European indisposition 10 make temporary
loans: II may also be attributed IN part to the
uncertainty of bankers in this country regarding
the size of the crops and the exportable surplus
At any rate. whatever the reason. 1t was most
fortunate that the gold could be secured. If the
operation Is carried too far, however there IS
danger that Europe will send back large blocks
of our securities. an operation that has not as
sumed significant proportions as yet
General business is beginning to show the ef-
ctr IN
How far the contraction will extend must de-
pend upon the ceerity with which confidence
is restored and the readiness with which credits
are granted Probably the imports of gold. the
Treasury deposits, which have been increased 10
S2l2OO0OOO and the issue of Clearing House
certificates have restored the general banking
position to where it was before the boarding
began. and hereafter the strength of the finan-
Cial institutions Will steadily gain from the re-
turn OF withdrawn deposits. Meanwhile loans
have been reduced by the refusal TO renew ma
turing obligations and liquidation of stock coll
lateral. Consequently. if confidence can be es-
tabhshed and funds provided for work aban-
doned because Of the stringency. it will not
take long 70 overcome the sentiment Of con-
servatism that is responsible for smaller bank
exchanges and larger failures than a year ago.
Weather also has initiated against retail trade
in seasonable merchandise. and tho only en-
couragtng news OF the last week referred to an
active wholesale business in holiday goods
The disposition in the commercial world Is 10
await developments
Prices OF commodities tend downward as de-
mands are restricted 10 immediate needs Tho
most striking fluctuations occur at the leading
exchanges especially cotton and grain. Spot
mddling uplands cotton in this market fell
about 81 bale last week and some options
declined still Thare toll os
corner IN December deliveries but latest sta
tlstics Of movement do not encourage opera
tons Of that nature port receipts holding close
20 those OF a year ago. while last weeks ex-
ports were much smaller The census bureau
reported G167.S0O bales ginned up 20 November
l. against 6.9O6 800 bales last year This was
somewhat below expectations. but Il Is not pos
sib!e to approximate the extent TO which the
movement is retarded by financial stringencv
Wheat was much weaker because money could
not bo secured for movement to the seaboard.
and exchange bills against exports wera nego-
tiated with difficulty. These factors also caused
the closing Of many -four mills and added 10
tho depression in the raw material. Shipments
abroad far exceeded the movement n year ago
however and tho feeling improved toward the
end OF last week Corn was weaker with wheat.
and declined further upon publication Of the
official preliminary report which made the crop
-,A15. I12,oDo bushels, or 62 900 900 more than
was indicated II month earlier
Manufacturing activity is moderately cur
tailed, several leading industries LAYING of
hands until the outlook is less uncertain while
the fall in prices has necesstated several re-
ductions In wages, This backward stem has
not gone far as yet, and may be checked at
any moment by the return OF confidence and the
placing of contracts for distant delivery. Until
forward shipments are sought, however caution
ls observed regarding the accumulation OF
stocks. The new conditions hastened settlement
of many strikes and there is little resistance to
proposed reductions in wages. In certain de-
partments OF the textile Industry contracts
cover production so far ahead that spinners do
not seek more orders. but II is probable that
concessions In prices would be necessary ff new
business were sought. The situation in New
England is complicated by the receivership
asked for the leading print works another In
stance Of abundant business but temporary in
ability TO raise funds. Steel plants are stH
fully occupied rule. but new orders come
forward slowly and shipments are more prompt
y large tonnage of rails may be placed at any
time. ard much export trade is under consldera-
ton. Footwear factories in New England re-
ceve small duplicate orders for fall and winter
goods. and the quiet leather market has caused
further reductions in prices OF hides.