New-York tribune., 1907-12-02
MONEY AND BUSINESS.


Substantial advances occurred in many securi-
ties last week. and the average at INC
was materially higher although the lowest
point in over seven years was toucheu oli ~
day. From that position the rise was aliiios'
,,,,,,+err,,n+ed except as occasional liquidation
of hie accounts caused temporary reaction. IiliS
&c y factor that will be felt for some time Dur
ing the Ione, season of severe depression III was
necessary to carry excessive loads in cases "Hoi0
realizing would have produced disaster 1HeNo
accounts are closed out whenever the 'lalAe'
stor.e' or,, mower Of absorption, and the selling
is a heavy handicap to any EXTENDED rlse' f''
the first time since the panic there was specu-
lative buying on a big scale. and the movement
disclosed a much larger short account ''i'i
,rae goperalIv expected As Wall Street usually
leads the country, the rise in stocks is Watcheo
with much interest If the Improvement is
maintained there will be more confidence re-
garding the early resumption of normal conui-
tions in commercial channels. Meanwhile the
rise in prices of securities was accompanied by
a heavier loss in railway earnings.
BY far the best news Of the last week was
the report Of financial improvement II was
especially gratifying to find rates declining at
a time when preparation for December dividend
disbursements of S.I5,o00,0OO might have been
expected to cause at least temporary pressure
Currency premiums fell so low that more con-
Germs abandoned the business, and this should
accelerate the full resumption of cash payments
by the banks Many institutions now furnish
all the money needed for payrolls, and only
resist large Withdrawals Of cash because of
the belief that the depositor intends 10 sell the
currency. This demoraIizing influence is almost
eliminated. and the situation improved so much
that the Treasury Department stopped Issuing
the 8 per cent certificates. As this method Of
relief will cause strain when the time comes
for redemption II is fortunate that il not
found necessary TO issue more than about one
third OF the proposed S1000oo000. Local banks
continue to send large sums TO the Interior
where the pressure is now relatively much
greater than here. despite frequent statements
from the West and South few weeks ago that
this stringency would not 60 beyond Wall
Street. Marketing of crops will be delayed on
this account. but the ultimate result VIII be
about the as usual
Trade returns arc conflicting, yet the general
tendency Is clearly toward greater caution. job
bers and wholesalers find the smaller dealers un-
willing to assume customary obligations until
there IS assurance OF demand from consumers
which restricts the movement of merchandise,
and collections are seldom better than fair. The
shrinkage in volume of business as compared
with this time last year Is probably best indi-
Gated by the decrease of bank exchanges outside
New York. which for the last week was about 20
per cent. Kansas city is the only municipality
of large size that reports an increase over the
clearings in 1906. Some branches OF retail trade
find holiday demand opening favorably and
Ia certain sections OF the country seasonably low
temperature has stimulated the distribution of
wearing apparel, but really favorable statements
are the exception. Better things are expected OF
the year as rule and depleted stocks ul-
timately must be replenshed: but hope OF lower
prices IS always in evidence after n season Of
reaction. and many dealers who have confidence
In a good business next spring will not place
contracts at current quotations.
Some idle manufacturing plants resumed work
but more mills stopped machinery temporarily
the steel industry curtailing operations very
materially. Statesmen OF several concerns have
been instructed to seek orders pending the
return of normal financial conditions. In most
cases where factories have restored full activity
wages are lower and It is estimated in trade
circles that the average reduction in pay
amounts to 10 per cent. Sales of pig iron are
reported at lower prices. and steel would have
TO be cheaper II contracts were taken. AS lead
ing interests have agreed TO Curtail OUTPUT
rather than make concessions, it Is probable that
general cut In quotations Will occur. Sim
liar conditions as 10 production and sales are
noticed in the market for cotton goods, the only
definitely favorable report being the moderate
export trade Woollens are not fully opened,
and only fair business is recorded in the lines
that have been offered. Raw wool IS steady
but may fluctuate IL any pronounced change oc-
ours at the London auction sale. which opened
weak. Footwear shops do not produce beyond
orders on hand and leather output is curtailed
but it is not possible to prevent accumulation
of hides and lower prices. The average Is now
about five cents below last years figures
Despite some reactions, leading farm staples
advanced in price last week, although the GEN
eral level OF all commodities went still lower
movement to hold back the yield for IS cents a
pound. The proposed operation applies to 6,OOO.-
coo bales. Exports are we'll maintained, last
weeks total being about the same as that of
year ago. and port receipts are also large; bur
takings by Northern spinners are much smaller
than in 1906 at this time Many speculative
o. orators shifted their position to the long ac-
cotrt after an unsuccessful effort to resist the
upward tendency. Numerous crop estimates
were prepared. and there was a singular una
nimity about the average of predictions at the
leading exchanges. in each case the figure being
slightly below 12.OOO 600 bales FREQUENT nm
ward movements also appeared in grain the net
result being a substantial rise for wheat and
moderat gains I'm coarse cereals Exports of
wheat and -four continue larger than last vear
but the chief influence prices at all the ex
changes was the better financial situation.
:
General Coxey. late of Coxeys Army has de-