New-York tribune., 1907-09-23
NONEY AND BUSINESS.

crate investment buying. The short account Is
also more Quick to cover outstanding commit
ments at the first definite sign Of rising prices,
and brokers are predicting that present quota
tions will seem very cheap next spring After
drastic liquidation has produced a decline Of
billions in the market value of securities, with
no indication Of any material fall IN actual
value It IS logical that the pendulum should
swing back. But just when the movement is to
come or how far It will be extended is ques-
ton that the greatest financers cannot answer
No real Improvement has vet appeared. At each
rally and subsequent reaction there Is hehten-
ing OF the load by the interests that are carry
ing most of the supply Of stocks OUTSIDE the
boxes of investors and during the last week the
situation has become slightly easier on this ac-
count but trading Is almost wholly professional.
and few members Of the exchange are earning
interest on the capital invested in their seats
Money has loaned freely call at } to per
cent. and the demand for term accommodation
has decreased somewhat. making loaIIs possible
at 6 per cent for long periods on stock market
collateral but the rate for commercial paper Is
still abnormay high, interior banks supplying
the only market A sale OF the new municipal
bonds at above 106 good sign, and there
was encouragement in the moderate gain IN
cash by the local banks Losses to the interior
were Offset by Treasury operations. and It is
surprising to find that 81, ,500OOO Of government
bonds are still outstanding upon which interest
ceased on July /. The national bank report
showed conditions on August % much better
than expected. except that loans continued
larger than indicated by speculative liquidation.
Money is sent to the South. and demands tom
the West will soon be felt by local institutions,
while there IS not the customary offset OF
finance bills in the foreign exchange market
Cotton exports are beginning to supply remit
tance. and recent purchases OF grain promise
more exchange. but owing to the unfayorable
attitude OF London 10 this business there Is not
the usual speculative offering which produced
shipments Of gold in this direction in septem-
her and October OF last year aggvegating S5S,
6S1. $50.
One prominent man in all interview last
week regarding the general business situation
succIncty told the story by saying that the
whole country had been overextended that
the rest cure became necessary. but there was
no reason to doubt an early return 10 full ac-
tiyitv OF the lines that were forced 10 curtai-
This IS the opinion OF many students OF eco
uonlic conditions. No serious symptoms are
dlscerned, but too much was undertaken for the
available resources in certain instances. and Tile
rest cure is being taken. This is by no means
universal however. many commercial reports
continuing to tell OF increases especially at tho
West and bank exchanges outside of New York
are larger each week than year ago Several
new labor troubles have appeared. notably 4
strike Of shoe operatives at St. Louis. which Is
one OF the busiest sections of the country. but
the total idleness is not large Scarcity of labor
ia still the chief complaint at many points, de-
spiterthe full million immigrants who have al
ready arrived this year, and nine months have
not vet elapsed Receipts OF merchandise from
abroad also exhibit marvellous gains. official
statistics for August showing imports valued at
$4,000 900 more than IN the same month OF
any preceding year. on the other hand. ex-
ports decreased slightly, and there was scarcely
any favorable balance on merchandise account
Current shipments abroad of larger vol
ume than last month. however and the export
orders for farm staples placed during the last
few days promise still greater Improvement In
this branch of foreign commerce. Exports of
cotton for the third week OF the new crop sea-
son were almost equal to last years figures
This is the first comparison that has been even
apnroximately favora BILE for long time. but 1t
is believed that the movement Will continue to
expand as port receipts grow moro normal,
especially If prices held at the present posi-
tion which represents decline of about 81 so a
hale from the recent high point that almost
STONED foreign purchases. The outgo OF wheat
is also increasing, to which is due much OF the
enhanced cost. Bad crop reports from Mani
toba and rising Liverpool cables were promptly
followed by substantial export sales here and
option prices rose far above the point that would
seem to be warranted by domestic conditions
alone. Harvesting is making good progress.
and the only serious danger is the loss Of corn
that would follow early frost but about 80 per
cent of the yield is now safely secured.
Manufacturing news is somewhat confusing,
with the most sensational developments pertain
ing to metals When it was rumored last July
that copper would decline from % to 10 cents II
the value of securities but it is probable that
several transactions recently occurred at the
lower figure. Demand fell off. money could
not be raised for proposed work, and meanwhile
the abnormally high price stimulated produc
ton everywhere many abandoned mines resum-
ing while facilities were extended at leading
plants 1t is well known that ultimately there
must be much further trolley construction. and
probably the electrifcation of all suburban rail-
ways. but capital is not now available. that
the restricted consumption Is causing plans for
curtailed production Pig iron has ceased to de-
cline I'm price, consumers purchasing moderately.
and structural steel mills report steady de-
mand for bridges and buildings Shoe shops at
New England encounter demands for conces-
sions from buyers simultaneously with frmer
market for most materials. Cotton mills
we'll supplied with contracts that the sharp fall
in raw cotton has not suggested any change in
prices of goods, although current quotations are
abnormaly high.