New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-20
MONEY AND BUSINESS.

that is slow TO appear, while the investing pub
lie finds more profitable occupation for It's funds
elsewhere. In view of the Indifferent demand
ana the rise in wheat the average loss of less
than. 81 share for the sixty most active rail-
way securities last week is evidence that stocks
are in strong hands, and there is no alarm re-
garding the future. Had there existed an ex-
tensive long account of a strictly speculative
nature the stories of ruin on the farms could
hardly have failed to precpitate violent liquida-
ton This has been the unfailing experience of
financial and legislative factors now existing
Another adverse incident Of the week was the
premature announcement regarding the findings
or the Interstate Commerce Commission In the
investigation Of the Hartman system. 1t sub
sequently developed that the report was merely
the recommendations OF counsel and It by no
means follows that they will be adopted: but
the market bore the shock with only fractional
responses In most instances. although 1t was
believed on the Stock Exchange that the final
report had been made in that form. While
prices of many stocks offer most attractive
bargains, II is also true that further reaction
may occur before q definite upward movement
begins. especially the supply of securities will
increase whenever monetary conditions encOur-
age borrowing by the railways. This ratio Of
supply TO demand must determine the ultimate
level Of quotations regardless of the surface rip
pies produced by manipulation.
Two financial factors are attracting attention.
but neither viii be felt Immediately, and there
is opportunity for much discussion as 10 whether
any stringency viii result The attitude OF the
new Seer airy OF the Treasury regarding with
drawal OF deposits with the banks. especially in
connection with the redemption Of bonds matur-
ing in July, receives most attention because Il
would probably eliminate the small surplus now
held by the local associated banks. AS Secre-
tary Cortelyou has shown disposition To help
the banks in every way authorized by law and
the remaining weeks OF the fiscal year prom
Use materially TO augment present Treasury cash
holdings. there seems ample assurance that the
drain on the banks will be minimized. Further
more. It is obvious that when the bonds are paid
off the money Will not be boarded by the present
holders, but will be deposited in the banks In
ternational complications are less clear the re-
cent rise In foreign exchange and rates abroad
making II conceivable that gold may be exported
in the usual triangular method In any
further effort is made by Paris to strengthen the
reserve. This menace diminished last week
by the gold secured in London by the Bank of
France and the release of gold earmarked for
India that will go into the Bank OF Eng
land. The rise in sterling due to demand
Tor remittance against securities sold here by
Europe ana tle SeaSOnaDle tourists transfers,
but as an offset there is the customary issue of
finance bills to provide funds for movement of
the crops. These loans generally made
about this season to mature in the fall, when ex-
ports of sarm staples supply exchange for set
tlement. How much bearing the adverse spring
weather Will have on future shipments of grain
and cotton cannot now be determined but de-
crease in quantity will probably be offset by
higher prices
Whether the wheat crop has been reduced %
per cent not is matter Of uncertainty but
the price of the July option at Chicago has
risen that amount since the month of May be-
gan. and pool operations may carry the move
ment much further especially If the public gives
its support. a long OF stagnant or de-
Ginning securities prepared outsiders especially
capitalists of moderate size and speculative
proclivities, for just the grain situation that
has appeared. and it is probable that manipu-
lators who could not unload railway stocks on
the public at any price have distributed much
wheat at over dollar a bushel Latest returns
from the winter wheat states indicate that
damage has occurred, but the ruin Is by no
means widespread and few weeks of warm
weather would much of the crop that is
backward. Spring wheat seeding is late in the
Northwest. but work is making rapid progress
and in all sections the acreage will be increased
tractive. Had this advance been delayed
month 1t would have had little influence on the
size of the crop. but there Is still time to plant
spring wheat, and it will be done much more
than was originally intended. While this coun-
try can make up the ldteness of spring the
situation is much more serious I'm Manitoba and
some other foreign countries where early frosts
preclude the possibility of securing a good crop
unless 1t Is we'll under way by now This sup
porting factor from abroad promises to sustain
prices above normal and should neutralize the
effect of any domestic shortage in the total
value OF the crop. while incidentally providing
a most satisfactory market for the stocks OF old
wheat on the farms. which are still heavy IL the
official report on March l was even approx
imately correct. At that time producers still
held over 2OO,O00,OO0 bushels, and since that
date receipts at primary markets have been
only 100000 bushels
Cotton trading has also attained abnormal di
mansions. speculative operations attracting
much outside interest. and prices are now well
above the position a year ago. DESPITE much
heavier stocks The amount that came into
sight last week about 20 per cent less than
the movement in the corresponding week of
1906 but since September l receipts have been
100000 bales larger than in the previous year
w lille the statistical position OF the old crop 1.