New-York tribune., 1907-05-27
MONEY AND BUSINESS.

because of sensational crop news skllfully dis-
seminated and exaggerated statements regarding
the injury done the railways by state leglsia-
ton. Absence of support by strong interests
and liquidation by discouraged spectators VINO
carried stocks through the break two months
ago contributed to the decline, and last TUESDAY
the average of the sixty most active railway Sc
curities closed at S93 II, or about half point
lower than the bottom price for recent years
that was touched on March A. Only one small
failure resulted. and when the borrowing dc
mand for stocks disclosed the extent OF the
short interest there occurred the customary re-
covery. Nothing had changed in the general
situation. railway earnings continued to exhibit
substantial gains in gross income sufficient to
meet the rise in operating expenses and MAIN
tain unprecedented dividends. and the financial
outlook was not materially altered yet erratic
movements occurred in the active stocks as
manipuators pulled the strings. moderate
amount of genuine investment buying appeared
q the lowest prices, numerous fractional lots
of stocks indicating that savings and dividends
were taking advantage of the profitable interest
return OF good securities at attractive quota
tiOns.
Lower rates for call money have little signifl-
cance Indifferent speculation in stocks leaving
bank balances unoccupied. but on term loans
somewhat higher quotations prevailed. The
frrner tone was que 10 more railway pOiIONihS
and reports that gold would be exported, AS to
the latter. international exchange rates indl-
Gated that Paris was securing some gold IN
London. and the fall in the French check rate
threatened TO start shipments from here on the
triangular plan especially New York ster-
ling quotations were close 10 the point at when
It was cheaper TO move specie than puy eN-
change. Moreover, the Bank of France was so
desirous of strengthening its position. presum-
abIv on account of Russian obligations, that In
terest I'm transit would not be lost by the snip
per Negotiations about completed wheh
the situation altered local exchange declining in
responsa to a report that this money market
would be hardened by large Withdrawals OF
government deposits Apparently the only basis
for this rumor was the presence or secretary
CorteIvou In New York and the fact that about
$40 600 600 of. bonds mature in July. If Treas
urv officials would avoid disturbing the money
market the simplest solution will be 10 pay or
these bonds by drawing on the banks "heh
they are offered, in which case It is probable
that most of tho money win not be moved.
This course would not prevent gold exports
however. but no great disaster would follow the
shipment of a few kegs of specie
1abor troubles are more numerous, especially
abroad, and the strike at the Kand mines
threatens to curtail the output of gold. If some
H.
commodities n gratifying thing, in view OF the
fact that the cost of living is above all records
fo, about TWENTY-FIVE years. Local strife Is re-
ducinr exports of merchandise by about one
half vessels being loaded with the greatest difh-
Guilty. and several railways are seriously handl-
canned hy controversies OF machinists and otner
employees It is singularly short sighted OF labor
leaders to precipitate struggles at TINS uhe'
So much has been said about the reaction IN
,,,sr,oee sometimes sincerely. but more often
Co.. s,oc,Iative effect that timid people arc be-
,,,i,c IN soc paunt ghosts OF hunger in every
renort from the wheat fields. II capital IL
already somewhat apprchensiV" regarding ti'e
adyisabllity of new undertakings, 1t VIII surely
postpone work If there is additional Tear "i
strife with labor A moderate check to de-
yelopment at the present time is deslranie on
account Of the scarcity Of money. but It would
he a great misfortune to generate depression
When everything was booming the labor unions
couId safely insist on more favorable terms ana
that condition lasted for ten years; but now the
tir,o has come when equilibrium is desired; II
tho nation cannot go forward. II certainly does
NOT want to go bacl9ard. This is an unusually
,,nnronitIous time for strife between capital and
labor.
Further sensational movements occurred last
week at the commodity exchanges, both grain
and cotton establishing new records for the
wear. with most noteworthy prices attained by
wheat Thus far the advance has not restricted
exports foreign needs calling for a liberal move
ment and st a probable that much Of last
weeks big outgo had been arranged before the
rise Of over 90 cents hushel Doubtless
speculation is the chief factor In the advance
a public interest having appeared that could
not be aroused in the stock market; but 1t Is
also evident that damage has been done to the
winter wheat crop and the late season has de-
layed spring wheat to an extent that makes the
outcome unusually uncertain. While these
points are obvious. 1t is absurd even to attempt
an approximate statement of the reduction I'm
yield. Reports sufficiently contradictory 10
encourage the hope that there will be enough
wheat, with the quantity carried from the
previous crop, to meet the usual requirements
for food and seed. and possibly few bushels for
export Some thought OF this kind came TO the
spectators late last week. and prices reacted
from the highest point, but somebody still has
a lot of wheat to sell in the form of options
Cotton was less irregular. prices rising almost
steadily as dispatches told of more vet weather
and replanting In this crop also there is a
wide difference between the injury on the plan
tations and the damage done in the exchanges:
but 1t is known that seed is very scarce and
costly and much of the acreage has been re-
planted, in some cases for the third time Ex-
ports Tor the week exceeded those of the same
week In 1906. despite the advance In price Of
about 81 % a bale, and shipments for the
) Isoh 'hus iar are now more than eight million
bales, an amount only once exceeded In n ,,,u
year. Statistics of the quantity broupbt into
sight and taken by Northern spnners last weei,