New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-25
MONEY AND BUSINESS.


support Probably the most direct cause OF
depression was the large amount of bor-
rowing. which appeared chiefly in the form Of
short term notes, the time IS not considered
propitious for ordinary bond issues Looking
into the future few years, 1t would seem that
1910 is being burdened with more than its share
OF maturities. Legislation for lower rates and
newspaper attacks properties have
contributed to the weakness, and also the state
ment by some railway men of national reputa-
ton that the zenith of this era of prosperity
has been passed. Sentiment was somewhat
demoralzed by these influences. and there was
little encouragement in several reports showing
a decrease in net earnings while the unusually
extended holiday from the close on Thursday
afternoon over Sunday was the cause of much
liquidation by uneasy speculative holders There
was no indication that permanent investors were
sacrificing any OF their securities, however and
stocks are not at high level of prices in COM
parison with recent preceding years, while there
IS little evidence that a large quantity IS held
by any but the strongest interests
Financial conditions were responsive to the
large issues of short term notes. which drew
heavily on available funds in this country al
though many placed abroad Time money
and commercial PAPER advanced in quotation
because Of the more attractive terms offered by
the other temporary form of investment. which
reduced the available supply Of cash. The sit
uation called for some action by the depart
ment. and the retiring Secretary Of the Treasury
announced that no more government deposits
would be withdrawn until after Mr.. Cortelyou
took charge. Doubtless his attitude toward the
money market will be equally favorable be-
cause the regular operations OF the Treasury
continue to produce surplus which should
amount to about $4OOOOOOO for the fiscal year
10 March !. Each day OF late has supplied a new
high water mark OF gross gold holdings in gov
eminent vaults. the record now standing at
about $9lOOO0OOo Few bonds have been pre-
scented for payment at the special price offered
by Secretary Shaw. and tn, maturity Of this
issue after July l will provide new monetary
feature at that time. Cash has moved hither
from the interior on account of investment in
the railway notes. but otherwise there is no IN
centive. as rates are relatively frmer at most
other centres. No recovery has appeared in
foreign exchange quotations, demand for re-
mlttance being offset by finance bills against
European purchases OF notes and commercial
exchange against the outEo OF grain and cotton:
yet no gold is secured at London.
More talk of a coming reaction in business
makes it desirable to examine trade returns
with exceptional care. and close study of the
situation reveals no occasion for anxiety. While
1t is true that some plans have been abandoned
on account OF the excessive cost of labor and
material, this is both an evidence of the ire
mendous pace that has been established and an
indication that conservatism is operating to pre-
vent the boom condition that is to he feared.
Labor is commanding high wages because It is
we'll employed. and yet there is scarcely any
interruption on account OF strikes for more
money. BY the selection Of a better class of
men leaders. the trades unions are less ex-
posed TO unreasonable and Improbable strug-
r-t1
already under contract has made it possible for
many employers voluntarily TO raise wages
above all previous figures During recent weeks
the weather has been unusually severe in many
sections of the country retardng building oper-
atoms and causing disastrous delays to trans
| portation yet the permits issued promise vigor-
| GUS structural work with the return of open
weather, which cannot he much longer delayed
and the railways are gradually resuming normal
traffic conditions. Confidence in the future is so
great that many jobbers unable to fill orders
| for spring drygOOds. which is the special trade
| feature at this time. and mills operate almost
! every available loom and spindle No one can
| predict regarding the crops of 1907, or it would
| be possible TO see further into the future hut
| an average yield of the leading farm staples will
| make this the banner year in the nations his
| tory thus far, while poor crops might produce
definite check to the progress that has con-
tinued without interruption for decade
| Better prices for grain and cotton reflect the
| persistently heavy foreign demand and liberal
| home consumption Many speculative attacks
| on the cotton market have had little effect
| Emphasis is laid on stocks at English and Con-
| tinental mills about 500 900 bales larger than a
| year ago, but this is answered by reference 70
! steadily maintained exports and reports from
foreign spinners that their production is covered
| in many cases up to the end of the wear nv,
| orders for goods that still appearing The
| domestic pressure is we'll known New England
| and Southern cotton mills having so much home
| business that export inquiries receive scantv
| attention prices being less significant than date
| Of delivery to urgent purchasers in this country
| In option trading there some success IN
| depressing the March delivery, owing to expec-
tation Of large notices February 26 and tbs
| extended holiday but distant options and snot
! quotations rule firm. In the grain markets the
principal feature has been the difficulty OF maxi
| ing deliveries at primary markets. and exports
would be on much larger scale If receipts came
| forward readily at the seacoast. Cables fror,
Russia indicate that there will be less com
! petition from that nation In the wheat markets
of the world, and it is to be hoped that with
| the return of good weather and relief to railway,
congestion shipments out of this country win
! expand materially. The crops were undoutt edlv
| of great size last year. but prices are not too
| high in view of the heavy requirements. while
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