New-York tribune., 1907-11-09
CONDITION OF TRADE.

''DUn'S Review saws:
scarcity Of money, unreasonable weather and
the holiday combined 10 make the volume of busf-
ness smaller tnan usual this week but the situa-
ton Is more encouraging because general belief
that the financial storm has been weathered re-
maTkably well. About 100000 in gold was Sc
cured abroad before the Bank of England raised
the official rate Of discount high enough to check
Iie movement and returning confidence is evi-
denced by deposits of boarded money. II will take
some tine 10 restore all this cash to circulation
bur the Treasury has given further relief and the
banks are Issuing notes freely Leading industries
are handicapped by lack of funds and SO many
contemplated undertakings have been deferred that
working forces are reduced, especially at steel
mills. Prices of commodities have declined still
further and exports should be increased tberebv
but for the last week foreign commerce at this port
showed a loss Of S25l2.G91 in value OF merchandise
exported as compared with the same week last
year. while imports gained $l65061. Failures in
october were ll5S In number. against S33 in the
same month last year, with liabilities Of SIT 900
compared with a0,6537l ia. The amount of defauIted
indebtedness last month exceeded all monthly
ords since September 1885, but the cause of the
heavy mercantile mortality much less alarm
ing than the earlier date. The recent trouble
chiefly due to the inability to raise money TO
finance the large volume OF business, whereas in
the previous decade there was a lack Of business
Railway earnings IN October exceeded similar
figures for 1906 by SIS per cent Bank exchanges for
the week at New York 25 per cent less than
last year, while at other leading cities there was a
decrease Of SO per cent"
"Bradstreet's" says:
Good progress has been made in accommodate
ing the country to the changed financial conditions
the scarcity of currency and the widespread sbst-
tuition OF credit instruments for cash AT the
same time wholesale and Jobbng trade has quieted
down very perceptibly. and the disposition in in
dustrial lines has been to curtail production wher-
ever possible the aim being to avoid unnecessary
or possibly burdensome accumulation of stocks
Ihere IS IN fact rather more optimistic tone pre-
vailing this week than last the outgrowth Of the
better feeling at the East the large arrivals of gold
from Europe, and the idea that basic conditions
Doth as regards the purchasing power of the peo-
PIE ana the absence of large stocks better than
IN some preceding years of stress There are it is
true increasing evidences that the level OF COM
modify prices has been forced unreasonable high
and that the process Of readjustment will compel
numerous revisions In this respect the easing of
IRON and other metal prices the further decline in
cereals ana the sharp falling off in livestock ouo-
lations are taken as of revisions in other
llnes yet 10 come. From two sections-the North
west ana the South-complaints are numerous that
the absence or actual cash prevents the movement
OF wheat and cotton to market; but the country
WIDE issuance OF bank and corporation checks IN
small denominations has eased the currency stua-
ton greatly, the domestic exchange markets nra
much more settled, and the general acceptance OF
credit instruments is expected to allow of necesser
business being done, pending the readjustment OF
the volume OF business 10 the supply of current can
ltaL Collections are rather slower but there has
been slight easing in the premium for actual cur
rency at the East the on the various financial
concerns are apparently a thing OF the past fall
ures are not so important in either of the pre-
ceding two weeks, and the of dstr1st has pcr-
cepubly subsidized, rendering the work Of rebabiIits
ton and repair matter only of time.