New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-11
MONEY AND BUSINESS.

criticism that interest and activity are lacking,
hut the new condition is equally unsatisfactory
because OF the demoralizlng influence it may
have on the business world outside of Wall
Street. If continued. Tight money and many
pessimistIc reports repealed outside buyers while
the big insiders apparently determined at last to
let the market fall to a point that would attract
the public At this time the professional operator
saw attractive profits in taking an aggressive
posItion on the short side of the account and
the volume Of business suddenly rose above all
regent records as prices fell to the lowest aver
age for the sixty most active railway shares
since October 1904. When the time became
propitious through the existence of a very heavy
short account in Reading sudden sensational
rise of about ten points caused much covering
at n loss, and the downward movement was
allowed to continue. 1t is interesting to note
these tactics because they have been the cause
of the detection of the general public, which was
inst beginning to take a little more interest on
account OF the attractive prices. In view OF
earnings and other factors, many stocks now
offer most satisfactory interest rates. but varta-
lions in prices of late have shown that outright
purchases alone should be considered. This is
no market for speculation on small margins. 1t
is argued that net earnings are not keeping UP
with gross receipts. owing TO the recent extern
siye rise in cost of railway operation. but this
difficulty Is receiving attention. During the last
week many roads advanced freight rates on
soft coal, and other changes are contemplated.
Financial conditions are unchanged. rates for
money ruling high because Of the vigorous de-
mand, and the coming week will call for new
railway borrowing as we'll preparation for
large dividend disbursements. Both these forms
of withdrawing cash from the market are tenn
porary in character and OF ultimate help 20 bust
ness, whereas the absence OF speculative bor-
rowing on stock market collateral is also a Ia
vorabe factor. But needs are large, especially
at the interior. which usually sends much money
here Mt this season. and high rates are expected
TO continue The amount of money I'm circulation
decreased 10 cents per capita during February
owing 10 Treasury Withdrawals OF special de-
posits hut Il IS still close 10 the highest point
on record. and the future Increase or decrease
depends largely upon the attitude OF the new
Secretary OF the Treasury. Under the new law
his powers are extended. but there IS sufficient
discretion left to that official to produce reduc-
tion in government aid to the money market. X
fl is considered advisable. That no ease is
proba BILE in the near future is evidenced by the
extreme difficulty experienced by several munich
palties that are seeking to raise money. handi-
capped by laws STIMULATING that bonds shall not
be Issued at less than par nor above specified
rates of interest. In view of the stringency and
the low rates Of sterling exchange. it is eX-
pected each week that gold will be secured
abroad and one explanation of the delay is
consideration for the Bank of England. Obvi-
ously any action of this nature IS merely
matter of expediency, philanthropic senti-
ments entering into the movement of gold,
which is not attempted because it is known that
any pressure against Europe at this time would
cause liquidation of loans in this market which
it is desirable to continue.
AbnormalIy high rates for money and the Sc
we're collapse of securities might be expected to
produce a reaction in general business. but there
is little evidence that any important alteration
has occurred in the buoyant sentiment that has
so long prevailed 1t is true that few plans
have been postponed reduced by the extreme
ughtuess of money. trade canvass of all cities
showing the value of building permits issued in
February as about 20 per cent less than similar
figures last year. But the two largest Eastern
cities supplied all the net loss and there is
little significance in a statement that may be
due TO a few big structures projected year ago.
Prices Of materials and labor are abnormally
high. and 1t is surprising that more disposition
is not shown TO wait for lower quotations and
easier money. 1t is probable chat any further
endeavor on the part of labor to force wages
higher would precipitare n setback and the
is the best assurance OF industrial peace and
continued activity. During the last week coun-
try buyers have been in attendance at the lead
ing distributing centres Special trade excur-
sions We're notable features N the Southwest
merchants from the interior placing liberal or
dcrs in St Louis. Kansas City. and other large
markets. Prospects for the future We're again
improved ny low temperature that caused a
further depletion OF retail stocks of winter
goods. but there is stil irro eUlarity in mercsn-
tile collections, although extensions are less
frequent
Cotton exhibited noteworthy strength in view
of persistenty liberal port receipts. the amount
that came into sight last week exceeding the
movement n year ago Wy one-third but there
Was the customary gain in exports, making the
aggregate since September l more than $780,
0G0 bales. which exceeds any previous record
Cost of the raw material had no effect on the
market for finished products. although cotton
goods also very firm, but the strength
there depends upon the inability of mills TO
make satisfactory deliveries and a consump-
tive demand that seems Unsuitable. Wool held
steady, with fair volume of business all in
fluences giving support except large gain in
the Australian clip. Other commodity prices
were also firm as rule, and the general level
OF ALL as measured by Dun's Index Number. has
attained new high record for recent years
Grain is firm, despite expectation Of heavy farm
reserves in the coming report covering statistics
on March l. and Northwestern flour mills still
struggle against the car shortage. which threat
ems further reduction in output.
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The German writer who. has published a PAM
MIL -