New-York tribune., 1907-10-07
THE WEEK IN WALL STREET.

in limited volume and within narrow range
and prices at the close showed a rule a little
Improvement compared with the preceding
week. The market almost wholly profess
sional Investors held aloof, the buying de-
mand which was active and important a
few weeks ago having come practically TO a
standstill; but there similarly an absence
Of liquidation. During the next several weeks
the condition OF the money market seems likely
TO be the principal factor OF immediate infiu-
ence on the course Of the stock market The
last week has witnessed an advance in the call
money rate TO 10 per cent, explained by the
preparations for the October dividend and In
terest disbursements and the payment Of a
large instalment the new Northern Pacific
stock and hardening of time money rates for
all maturities. The 10 per cent rate for call
loans ruled for only short time it is true. but
from present indications money will be com
paratively tight for weeks to come.
Notwithstanding the arrangement made by
the Secretary of the Treasury for depositing
from week to week government moneys with
banks in the grain growing states. as we'll
in New York City, the demands the local
institutions are. usual at this season, heavy.
and no diminution is expected in the immediate
future, as the crops are late this year and the
money market, in respect of the crop moving
requirements, is only now on the peak" which
extends over a period Of several weeks. The
bank statement Of last Saturday showed loss
OF cash by the associated banks Of $7621. 100
largely representing Withdrawals to the inte-
rior, and a cutting down of the surplus reserve
TO So 64S,075. which is much less than the sur
plus ordinarily shown at this date in previous
years. and which suggests the possibility of a
deficit in reserve al early day. The impress
sion gained ground late in the week that Sec
retary Cortelyou would announce some
new relief measure, but no intimation confirm
atory of that belief has Yet come from him
In London the financial situation showed i'm
proVement although the large engagement of
gold for Egypt at the end of the week gave rise
TO some uneasiness. and 1t is probable that if
urgent need arises here later on for English
capital the Bank of England will not tnterpose
obstacles. The foreign exchange market was
strong last week, the demand being large for
exchange for remittance in settlement of rnatur-
ing finance bills which the London bankers
sl-o" dlslncllnation TO renew, and in payment
LOT securities sold for London account the total
amount OF which sales recently has been heavy
Looking beyond the Immediate future the
prospect Tor any material advance in securities
prices seems rather remote. The business reces-
sion so long predicted is slowly and steadily pro-
ceedIng. a fact which should be faced bl+ which
does not bear the ASPECT Of disaster T2,,si,,aa
expansion had been so rapid as finally IN over
TAX the resources Of the money market and the
lIlIe came when great corporations could no
longer OBTAIN money for extensions and i'm
proVementS except at ruinous rates Expendi-
lures We're therefore reduced TO the minimum
and ambitious projects Of expansion were de-
lerred TO more propitious season. The conner
INDUSTRY was among the first to feel the effects
oI IHe pohcy OF retrenchment, for the growing
recognition OF the superior utility of electric
power had involved a CORRESPONDING increase IN
the consumption Of copper at ever mounting
prices, and the money stringency had through
causing the postponement or abandonment Of
many enterprises Of electrical deveIopr1ent
caused a serious shrinkage in the demand for the
metal and Of course. a decline in IFS nrioe
also- But the price has reached level
near which purchases in large quantity NAV he
looked Tor, level at which the producing com
panies may still make handsome profits al
though they are reducing their dividends from tho
hgures which reflected the high price obtained
Tor the metal a few months ago the latest re-
duction announced having been that Of the Ana
conda, last week
The United States Steel Corporation has ever
since its formation made for stability IN the
iron and steel business, so that no such striking
price declines are seen in these commodities as
IN copper. But the tightness Of money has had
the inevitable effect of lessening the demand for
Steel in structural forms and in rails, and fewer
orders mean less profits. They mean as well
the laying off OF workmen whose temporary
loss OF earning power means in turn a dinin-
lsheo demand FOR a wide range Of commodities,
aHecting wide range Of industries The rail-
roads are still handling a heavy traffic for b1si-
ness recession is a slowing down process. not an
abrupt suspension Of activity; but their monthly
statements although IN many instances showing
increases in gross, show even greater increases
IN operating expenses due to the higher cost
or labor and all materials: and this is an ad-
ditional reason for their postponement Of better
ments not absolutely necessary to be made
The oXerexpansion Of business, with the con-
sequent undue strain on credit, is a situation
not singular to this country, but exists in
Europe as well. The remedy there as well as
here, is recognized by experienced observers to
be the rest cure" as the president Of the Col
orado & Southern Railway expressed IL in his
annual report the other day; and that remedy
Is now in process Of application. In the United
States the situation is greatly alleviated by the
prospect now nearly assured, of satisfactory
crops Of wheat and corn and cotton this year;
and with economy superseding extravaganza
prices brought down to reasonable levels and
many grievous corporate abuses eradicated. the !
country Will by and by be in a position to begin
another forward movement, which shall bring it !
TO that height OF prosperity predicted by Presi- |
dent Roosevelt in his speech at Cairo