New-York tribune., 1907-10-14
MONEY AND BUSINESS.


sive losses except an accentuation Of condi-
tions that have existed for many weeks. Efforts
10 sell stocks encountered no demand. and forced
sales naturally produced very low prices. Pos
sbly there some increased anxiety to find n
market by holders abroad. liquidation ct AM
Sterdam being mentioned q cause of heavier
foreign selling. but the greatest pressure was
directly due to discrimination of banks against
industrial stocks as collateral for loans. When
liquidation OF this nature became unavoidable.
and no support given by the strong inter-
ests that usually come forward when prices fall
exceptionally low. there could be only one result.
In some cases differences OF 10 points occurred
between sales, and the average of the railway
stocks fell more than $33 a share below the level
year ago. while industrials lost about $50 in
that comparison. Even If IL be granted that
many quotations were inflated IN 1905 there can
be no question regarding the present position Of
prices. II may be some time before pressure is
relieved, but few investors are contributing 10
the supply of securities offered at these figures.
very favorable bank statement did not pre-
vent the market from closing at the lowest point
of the week
An encouraging feature OF the financial situa-
ton is the forbearance by leading centres
toward each other. The mere fact that little
incentive might have started gold exports from
New York indicates that foreign banks are
mutually interested IN avoiding any increased
pressure here. for the predicted shipments did
not go out. Local rates are very flrm time
loans on the very choicest collateral costing 8
per cent or more. and there Is no demand for
commercial paper except an occasional out of
town purchase. AS the rate is ~. per cent or
better. interior banks are doing a profitable
business Foreign exchange 1t unseasonably
high. new factors being uniformly against this
market. Foreign sales OF securities and the
maturity Of revenue bonds held abroad sup
piled a demand for remittance. while offerings Of
commercial bills failed TO increase There is
reason 10 look for an early improvement in the
latter respect. because very large sales Of wheat
ana flour have been made to foreign customers
and the outgo OF cotton should expand shortly
Meanwhile the situation Is relieved by constant
increases In deposits OF public funds with the
national banks. over S162. 100000 being so held
Other than government bonds are being sub
stituted as security for these deposits which
VIII make II possible 10 enlarge banknote cIrcu-
lation. There stlll remain over $4,000 600 bonds
uhredeemed that ceased TO draw interest on
July l. but these are gradually coming forward
as holders return from vacations and obtain ac-
cess to safe deposit boxes.
II is still a source OF wonder in the CONNER
cial world that general business is so well main
tained in the face OF contractions forced by the
'''"''N'e~a
market. These factors are most severely felt at
the East. and more specifically In this city
Bank exchanges each week show a large loss
at New York compared with the cIearings a
year ago. but at other leading cities the exhibit
is favorable Building permits issued last
month were slightly smaller than in September
1905 but outside New York there was a gain
In other cases the gains more general, no
details being available as to location notably
ft,n vr,fG1
OF many kinds OF manufactured products Post
poned plans known to be numerous. and the
country is just beginning to feel the need of
railway extensions that retarded by the
impossihility OF raising money at any reasonable
rate. Car blockades are beginning, and when
the complications OF snowstorms ape added the
complaints OF shippers will be loud. On this ac.
count many industries are stimulated far above
normal, notably coal. and the tonnage OF grain
offered to the railways is enormous. Seasonable
merchandise Is very active In most retail mar
kets. and the few complaints of too high tenn
perature at some interior cities should be re-
garded favorable signs, because the crops are
late and any additional time for harvest will
be reflected later in the volume OF general busl-
ness. Output OF pig iron is heavier than last
month. several steel mills report new records
OF production and only good news is received
from the cotton mills. The shoe workers strike
retarded output at st. Louis, but increa sed
business at New England factories.
Cotton is coming forward more freely at the
ports. but comparison with the corresponding
week in any recent year IS unfavorabe. and it
is still matter of conjecture as to whether the
lateness of the crop is more OF a factor than the
disposition TO hold FOR higher prices. AS quo
tations are now above the position at the same
GATE In any year for a generation. despite the
fact that a crop of 100000 bales is by no
means impossible, there would seem 10 be little
incentive TO delay marketing especially as
foreign spinners not eager buyers at cur
rent quotations. exports last week falling almost
100000 bales below the movement year ago.
More new high records for the year were estab-
lished in the wheat market. aggressive specu-
lation by the long account being based on the
apparently unlimited foreign demand While
it is probable that shipments abroad will fall
off II prices are unreasonably advanced by
spectators. thus far almost all offers have been
accepted. The dominant influence is the short
age in other producing nations. which is now
an established fact Domestic producers have
the satisfaction of knowing that ready market
can be found for any wheat carried over from
the previous large yield as well as this years
surplus. The current outgo is exceeding similar
figures for 1906 by a large margin. A lower
official estimate OF the corn crop advanced
prices. but exports reduced despite the big
foreign demand for wheat. Drouth in India,
which had so much to do with the rise in wheat
was equally effective IN depressing silver to the
lowest price since March, 1906, the decreased
demand for currency throwing bullion on the
market whereas that nation should now be a
buyer.
The whole world regards with much solicitude