New-York tribune., 1907-10-28

closed except for the timely action or strons
financial interests under the leadership of Mr.
Morgan. The Secretary of the Treasury also
labored untringly in relieving the situation, in
creasing deposits of public funds with the ma
tionaI banks TO over $1S0J000,O0O. In this re-
spect also the situation differed from previous
crises, the government being in position to af-
ford relief because of the large cash balance in
the Treasury. AT the time of greatest depres-
sion the average of the sixty most active rail-
way stocks fell over S41 a share below the
highest point touched early last year, and call
money commanded 100 per cent when any was
obtainable. A moderate rally started when $25,-
100000 thrown on the loan market, but con-
servative brokers refused to execute orders ex-
cept for outright purchases or the closing out of
contracts This reduced the volume of business
almost wholly to investment buying, and the
fundamental position greatly strengthened,
while those who were so fortunate as 10 have
funds secured the best bargain prices that have
been quoted in over seven years.
Two events may occur that will be of great
value in restoring confidence and normal cond-
tions. Foreign trade is turning sharply in
favor of this country, and will be still more sat
isfactoTy If transporting facilities are found.
Europe needs our wheat and cotton. and recent
events have made them more attractive in price.
But it is not possible to move the crops to the
seaboard in sufficient volume on account of the
car shortage, and vessels sail with water ballast,
although freight room had been engaged by eX-
pOrteTs Nevertheless, the supply of commercial
bills has been large enough to depress exchange
close to the gold importing point, and the Secre-
tary of the Treasury will save bankers the loss
of interest in transit by depositing gold with the
banks upon its engagement abroad The gov
ernment is in especially good position TO take
this step, having at the present time unprece-
9 M IN
change should move further in this nations
favor because of the low security market that
cannot fail TO attract foreign investors. Re-
ceipts of gold from abroad will tend to restore
confidence. and there is good reason to antiCi-
pate a second helpful influence in the return Of
boarded money to the banks. sales OF safe de-
posit boxes having been the most active busi-
ness of the last eventfu week.
Outside the limits of the metropolis there was
comparatively little uneasiness, and bank
changes last week were larger than in the cor
responding wee, of 1906. if figures for New
York are excluded. Some banks encountered
pressure. and the Westinghouse failure caused
trouble in Pittsburg. but the nation as a whole
experienced little distress. II the atmosphere at
this centre IS cleared with a fair degree Of
promptness 1t may he possible to continue the
vigorous activity at the West and South, but II
liquidation IS continued the contraction will ex-
tend throughout the entire commercial system.
Much work IS in progress and greater develop
mcnt Is contemplated. but cash and courage are
required. Exorbitant rates for money or lack
Of confidence will postpone undertakings. Cur
rent reports Of retail distribution are most sat
isfactory. especially from the agricultural dis
tricts. and in leading Industries there are no
complaints Of cancellations. which IS very
favorable sign at this time In a few sections,
particularly at the East, the weather has been
unseasonably warm for n full movement of
autumn and winter wearing apparel. but this
business IS only deferred and. for that matter.
II had opened unusually early. bright spot In
the Industrial outlook is the increased activity
due 20 tho settlement OF several extensive
strikes
Al the commodity exchanges the dominant in
hueuce was the financial stress. and large hold
ings were forced 10 liquidation. Prices declined
sharply as might have been expected. cotton
selling ~ the same price a year ago Port
receipts increased materially. and planters who
were advised TO hold back for Is cents accepted
less than IL at many points, yet the movement
fell almost onc-third short OF the same week
last year Exports also expanded. but these ag-
grcgated only about one-half those Of 1906 Es-
Inmates OF the total cotton crop were increased
by the official ginning return which reported
44o7,O55 bales ginned up to October Is against
493l62i last year. Wheat declined sharply un-
der monetary pressure and exporters placed
large contracts. Even after the loss Of several
cents in price there was an advance Of almost
30 cents bushel as compared with the quota
tion year ago, so that the outCo OF about the
same quantity last week as IN 1906 represented
value over one-third greater Weather con-
ditions have been exceptionally favorable for fan
sowing and prices stimulate preparations for a
larger acreage. but during the period interven-
ing before the next crop Is harvested there is
every reason 10 anticipate scarcity and high quo
tatons for wheat unless the yield in Argentina
Is phenomenal.