New-York tribune., 1907-11-04
HONEY AND BUSINESS.


doubly fortunate at this crisis to have ample
resources in the federal Treasury and man
of Mr. Cortelyou's capacity In charge. The
strain was so great that every extreme measure
known to finance was found necessary, includ-
ing the official declaration of a holiday in some
states A most artificial situation has resulted,
and it will take some time to restore wholesome
conditions. but confidence is returning gradu-
ally Evidences of tho better sentiment are seen
in the cessation of runs upon the trust COM
panies the return OF deposits, the liberal in
vestment in securities. and resumption OF nego-
tiations in many operations that had been
abandoned indefinitely Recovery IS retarded by
the overconservatism of many banking institu
tiOns which are accumulating a larger reserve
than necessary; doing exactly the thing that the
bank officers severally critcise when done by the
public. Hoarding in the vaults of the banks is
as deleterious to trade as boarding in safe de-
posit boxes stockings.
Clearing House certificates a temporary
palliative have great merit, and contributed
largely to the forward progress last week, en-
abling the banks TO settle balances without re-
ducing their stocks of cash, but this is kind
of imitation that could easily be abused Fort
unately. the men in control understand the situ-
alton so well that they have discouraged all
lending for use in speculation in securities.
More permanent assistance will follow the re-
ceipt OF gold from abroad about S21OOOOO
having been engaged, and the sentimental effect
is already felt, although the first consignment
has not arrived. How far this movement will
extend is a difficult problem. so many factors
contributing, The sharp rise in exchange last
Friday seemed barrier 10 further arrivals. but
1t was probably of a temporary nature. due to
the purchase of remittance against gold already
engaged and the payment OF November interest
and dividends TO foreign holders Of securities.
Exchange cannot stay very high IL the supply OF
commercial bills expands is promised by the
increasing outgo OF grain and cotton. Diff
Guilty encountered in connection with sales
Of exchange by shippers OF commodities. and the
domestic exchange market has been somewhat
upset by the resistance OF some reserve cities to
the forwarding OF specie yet large amount OF
cash has gone from New York 20 the West and
South
Stock Exchange conditions have presented a
problem of more complications than usual. and
the prognosticators are less positive regarding
the course of prices in the near future. It is
generally agreed that the level is abnormally
low and that the opportunity for investors has
not been so good since 1900 but many financiers
believe that better terms will be offered by the
forced liquidation still to come. That many in
vestors are satisfied to purchase at current
prices is indicated by the unprecedented business
In odd lots. authority having compiled a
statement showing over $1OO0OOO0O OF this
trading in the last ten days. In addition TO the
small sales. it is we'll known that many pur-
chases of over 100 shares each were OF the
right sort, as the rate for borrowed money is
kept at prohibitive point i'm order to restrict
margin dealing. Otherwise a big commission
house business would be transacted, as it is al
most certain that the average of $40 II for the
sixty most active railway stocks at the close on
Wednesday was far below the intrinsic value
of those properties. The same securities aver
aged $12O 80 last year and it is necessary to go
back seven years to find lower prices than now
prevail
Retrenchment and readjustment in the COM
mercial world cannot be accomplished without
disaster to the concerns that are overextended.
Last weeks mercantile failures were 30 per
cent more numerous than in the corresponding
week of 1905. and the full returns for October
will show the largest liabilities in any month
since 1896. Misfortune does not threaten the
firm that is operating Conservatvely, however
a the volume OF business is not fallinS off sud
denly. In many lines there is a broadening de-
mand, and autumn wearing apparel goes into
consumption freely. especially at the points
where crops have been marketed at high prices
In some Southern sections there is complaint
regarding both business and collections because
planters are holding back the cotton crop, and
this temporary delay may add TO the pressure
on concerns not strong enough to stand the
strain. Until the financial atmosphere clears it
will be we'll to the side of conservatism
rather than add TO load already too heavy.
II is better to maintain steady progress at a
time like this than to prepare for the needs OF
the next generation even the next decade
Reports from many leading industries Indicate
that there is scarcely any interruption by
strikes. the need for capital and labor to get
together just now being appreciated by both
The best news of the last week comes from the
footwear industry. New England manufacturers
reporting Improvement In the demand for
staple Shoes and prices fairly we'll sustained
Leather is quiet but heavyweight sole is scarce
and firm. while the decreased receipts of cattle
have checked the declining tendency of packer
Steel Corporation smaller than year ago.
they exceed the same figures of earlier years.
and It is agreed among producers of steel that
no accumulation of stocks will be permitted
Textile mills are busy rule worsteds con-
tinuing more popular than woollens and prices
of cotton goods are held by the large amount of
business the books OF the factories For n
time 1t seemed that the raw material would fall
far enough to depres5 goods. but exports of cot
ton last week were larger than in the same
week of 1905. while the amount that came into
bales short Of last years. These factors checked
the decline and aroused speculative interest