New-York tribune., 1907-08-19
1JnVEt- iND BUSINESS.

conditions already existing were acceh'uot0N'
more particularly by the abnormaily ught money
market Inability TO secure extensions oi iooi9
or to raise additional funds renlenish eX-
haustad margins added To the depression SFet'iE
facilitating professional operations by the short
account That spectators were active in down
ward maninIlation was evidenced by the bor-
rowing demand for stocks and the frequent
sharp rallies as purchases were made Wheh
profits could be secured. Rulnors crcuiate"
freely as to a changed attitude on the par VI
the administration toward the corporations u"'
what purportnd 20 be a summary OF secretary
Taft's speech was published on Friday ana
showed no intention to difcontinuc efforts to en-
force the law. 1t is interesting to note that
within few days the market value of Stahdaro
Oil stock fell $50 900 900 more than the total
amount of the fine. 10 price OF SAL it smart
or Just half the highest price ever quoted At
the close Wednesday the average ct the siNtE
most active railway stocks was SIS "a a share
or So - below last years high record. and
lower than at any time in more than three years
Investment buying at these low prices promises
Il good permanent return. but capitalists see a
still! better proposition in lending money tempo
rarilv
Quotations on time loans running over the end
Of the year are practically nominal because OF
the light offerings, borrowers readily paying a
nigh premium for accommodation, and it is
probable that per cent would not be more than
the actual net charge most of the weeks
business. Sixty day loans and three months
money came from abroad through the sale OF
finance bills. but the advance in the official dis
count rate of the Bank OF England to Az per
cent hardened the sterling market and kept
British funds at home: intended by the
unscasonably high bank rate. Easy rates for
call money indicate that the banks prefer to
keep funds available, and also that the daily
demand in Stock Exchange channels shows little
speculative buying by the general public. Local
institutions must be prepared TO meet demands
from the interior which may increase at any
time. and are now larger than usual at this
early date Receipts of new gold and lquda-
tion in the speculative market maintain fair re-
serves in the associated banks. and there is still
| the prospect of Treasury relief Otherwise the
situation would be more distressing.
Another large assignment caused momen-
tarv shock in the financial world, but as the
details became known there was a quick re-
turn Of confidence. II has been pointed out in
this column for some months and BY ali other
conservative writer's that the time was not pro-
pitious for overextenson. owing to the constant
possibility that maturing loans could not be re
newed. Several large manufacturing concerns
and many real estate and building operations
have come TO gTlet because 100 nluCu NdS uH-
dertaken for the amount Of available capital,
or. in other words. there was a speculative ele-
ment in the situation dependent upon adequate
borrowing power until consummation. There
has been too much OF this discountng national
prosperity and financial pressure is putting
conditions somewhat nearer Il cash basis. While
IL has been suggested that one cause of the
scarcity Of money was the larger amount car
ried in the pockets of the people. particularly
well paid wage earners. il Is doubtful whether
proper consideration has been given the new
condition created by the general use Of the
automobile Whereas 1t was formerly custom
ary to carry a few dollars only, II is now found
necessary to have large sums for accidents,
fines and other contingent expenses This de-
velopment of the last year or two has taken
millions of dollars out of the banks.
General business conditions show no impor-
tant alteration retail distribution being sea-
sonabIy quiet while jobbing and wholesale de-
partmcnts actively prepare for big fall and
winter trade At the leading cities. there is
larger attendance OF country merchants and
| buyers from the smaller towns. who are placing
liberal orders In the aggregate. Some sections
| find the demand more cautious than others, ac-
| cording to the progress OF crops. In few
| weeks all uncertainty on this point VIII nc re-
moved. and confidence will be more general
Y
payments are fairly prompt no mere than the
customary extensions being reported by the
! mercantile agencies Foreigners show undimin-
shcd confidence in the future of the United
states. immigration during seven months or
1907 attaining the phenomenal figure Of Sf1.oS4.
! which is about 10000 more than in the corre-
| spending part Of last year and exceeds the full
| twelve months of 1904. The new law proved efii-
/ cacols last month. reducing the number that
| were debarred
Communication was interrupted by the strik
| Ing telegraph operators. causing some disturb
| ance and annoyance. but the telephone is now
| so universal that the chief difference was the
| increased cost OF transmission. Local grain ana
| cotton trading was affected more than most
| branches Of business, the former being very de-
| pendent upon frequent reports from Chicago.
| and the cotton market is greatly Influenced hy
| onerations at New Orcaus while both desire
! an the available news from the farming dis
trrts At this season Wheat declined violently
| at the opening of last week but smaller receipts
! al prtm4rv markets and steady export dc
| maud together with strong cables from Europe.
restored much of tho loss in price. Coru Is we'll
! sustained despite the disposition to increase
| estimates of the CROP recent shipments abroad
| making most favorable comparisons with the
| same weeks last year. Slightly lower prices Tor
cotton were attributed TO the fall III securities,
which affected sentiment i'll option trading
There was still the support of inadequate moist
| ure in Texas, and some damage by insects. but
| the best element of strength is the inability of
| manufacturers to fill orders for cotton goods.
although mills are operated at full capacity.
| Other industrial plants also we'll engaged
! as a rule especially those making products OF
\ iron and steel.