New-York tribune., 1907-01-14
MONEY AND BUSINESS.

Strengthening influence Of the customary Janu-
ary demand prices suddenly collapsed under the
pressure incident to another announcement of 4
proposed increase in capitalization. Financial
conditions have not been conducive recently 10
big issues Of stocks and bonds. yet four leading
systems have called for vast sums and as a re-
suit the average of the sixty most active rail-
way stocks Is about 50 a share lower There
was the customary heavy selling OF Pennsyl-
vania stock in the London market on Friday. as
the announcement not made until after the
local exchange closed on Thur sday giving con-
siderable advantage to the large operators with
foreign connections and causing much criticism
by the small traders and general public. of whom
there none too many in the market these
days. If the usual January boom is to be at
tempted this year IL would seem advisab BILE TO
encourage outside interest rather than arouse
discomfort in these ranks that have been gradu-
ally diminished Railway earnings continue to
show gains. but the foreign attitude toward
American shares is shown by contango rate
OF per cent.
Liquidation in the stock market and return of
cash from the interior combined to produce lower
call money rates, but time loans held at per
cent for all dates. The Treasury stock Of gold
he's risen TO a new hgh-water mark of more
than SS96.0OO.OOO, and regular operations show
addition to the surplus during January thus
far, which led the Secretary TO grant extern
sion of the time for return of special deposits.
The banks were required to make the first pay
ment January 20. but under the latest ruling
will have no settlements until after February
l. Doubtless the other sums due on that date
will also be extended If the working balance Of
the government continues to increase. These
helpful factors would undoubtedly produce
greater ease in the local money market were it
not for the fact that the Bank of England main
tains It's official rate of discount at per cent,
almost unprecedented figure for the season,
and any decline in quotations here below par
ity with London would take gold abroad.
Finance bills are constantly maturing in the
foreign exchange market which can be renewed
only by making the terms attractive to foreign
lenders, and II is highly undesirable at this time
to disturb the international situation by moving
specie in either direction. Nor is there any i'm
mediate prospect of more independent position
for this country
Clearance sales of winter goods at the large
department stores and in retail branches gener-
ally would attract more attention and bring bet
ter prices were the temperature lower but stocks
are not excessive in many lines, and the busi-
ness situation is favorable on the whole. Trav
eng men have returned TO the road and report
satisfactory orders for spring shipment. while
jobbing and wholesale departments refer to the
volume OF business as better than the average
for the season. Some extensions are still asked
but a rule mercantile collections are suff1-
cently prompt. Heavy rains have stimulated
activity in special classes of merchandise, and
the lack of serious snow blockades makes the
railway freight situation less congested than was
feared although there is still much delay be-
cause OF the enormous tonnage rendered the
roads by shippers. Building operations make
rapid progress on account of the open weather.
and real estate transactions very large. al
though there is more conservatism in the extent
TO which mortgages are accepted.
Cotton was not depressed by the Census Bu-
reau's figures of quantity ginned up January
/. Notwithstanding a total more than 100000
bales larger than during the corresponding pc
riod of the preceding season. Estimates of the
final crop, as based the official returns,
usually increased 10 100000 bales, which
might be expected TO carry prices more than s.
bale below the quotation at this date in 1906,
but ii is evident that there is confidence in
greater requirements than ever before. This
position is sustained by weekly spinners' takinss
far in excess of last years and substantial
gain in exports, while continued activity at the
mills is almost assured by the large contracts for
cotton goods already on the books. Some
strength developed in wheat in response TO dis
patches from winter wheat states that severe
cold weather would cause great loss as the snow
covering was inadequate. This has damaged
the short account on several occasions, but the
actual WELD of winter wheat has steadily risen
TO new high records. AS an Offset TO this infiu-
ence in the speculative market there were cable
reports of a good harvest in Argentina and
much smaller exports than in the same week
last year
Manufacturing returns are remarkably ia
vorable. and this vigorous preparation for fut-
ure requirements is the best evidence that could
be found OF widespread confidence in the future
Mills and factories would not produce goods in
greater abundance than eSer before unless con-
sumption were practically certain. Some difh
fuel and raw material. the supply Of water
power or labor. but the net result is q heavier
OUTPUT than ever heto-e. Even the Northwest
ern -four mills are now grinding more vigorous-
" than a year ago. and this industry was max
ing the least favorable comparisons In Decem-
ber A heavy cut Of timber is expected. and
sawnils are operating freely. while the tone
OF the lumber market is very firm. Iron and
steel mills have business running far ahead
that no accumulation of stocks is threatened by
the unprecedented rate OF output. The produc-
far eclipsed all previous monthly records. and
the current rate is about the same. Yet con-
tracts for delivery placed by the steel mills
| AT as remote 8 date as the last quarter Of the
wear az only slight concessions from current spot
prices Export inquiries for cotton goods are
| encouraging but the chief support comes from