New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-04
uGNEI ANn RI-NLNESS-

have not been in evidence for more than two
years. These purchasers who wait for bargain
prices recognize the merits of many properties,
ana realize that it is necessary to go back to 1904
10 fud quotations as attractive as are now avail
able The decline, which has averaged more than
SO share for the sixty most active railway
stocks, began a year ago. when manipulation
failed to attract the general public. High money
rates made it difficult to sustain the market, and
fear of adverse legislation has been sentimental
influence Of more or less potency. During recent
weeks there has appeared the additional de-
pressing factor of vigorous selling for the snort
account in which large numbers OF outsiders
have participated. This is extremely unusual
as the unprofessiona trader seldom operates on
that side Of the market, but as usual, the wrong
time has been taken. Short sales at prices aver
aging SIS higher would have been profitable but
selling Of stocks at present quotations contains
an element Of danger, as a sudden reaction
might make It difficult to cover. Every state
raent of commercial activity is promising, and
confidence is felt in all branches Of industry
while railway earnings continue to show gains
over all previous records. 1t Is to say the least,
anomalous to find these conditions concident
with the lowest level of quotations for railway
stocks in more than two years.
Financial conditions present new and interest
ing features each week. and it is increasingly
foreign loans in this market known TO be enor-
nous and some London papers expressing I'M
easness regarding the situation in the United
States chiefly because progress has continued
so long that the conservative English mind con-
siders a reaction due. IT might be expected that
maturing loans would not be renewed and gold
would go out IN settlement. On the contrary,
the last week has brought small engagements Of
gold for shipment hither and 1t Is expected that
much Of the gold about 10 arrive at London from
South Africa Will be secured by New York. Yet
there is nothing remarkable about tho operation.
Exports Of cotton have been abnornalIy heavy OF
late, which supplied an exceptional amount OF
exchange; money rates have made II profitable
for foreign lenders 20 renew maturing finance
bills and London took large part OF the New
York Central short term note issue. The latter
factor was the most potent IN forcing sterling
rates down TO a point where profit could be
figured on gold imports. The movement OF specie
may be stopped by an advance In the official rate
OF discount by the Bank of England. but II is
already abnormally high. Liquidation in the
stock market has brought easy rates for call
money. yet there is no disposition 20 make long
time loans at attractive terms. which indicates
confidence IN the continued need OF funds in COM
merclal channels, even II speculation should
drag for time
Last weeks decrease in bank exchanges as
compared with the corresponding week in 1906,
is evidence OF a reaction In general trade.
although it would seem TO mark turning point
in the wonderful forward movement. But care
full analysis OF the returns from the principal
cities dscloses two significant facts-hrst, the
loss at New York. where speculation fell
or IN greater ratio than clearings. net gain
being recorded by all other cities. while In the
second place there one more settling day last
year. This point, often overlooked although OF
great weight, should be considered with especial
care at this time. when many authorities
have determined - prove that a setback in
business has occurred II the short account in
Wall Street can unsettle confidence Il Will
complish the desired end. but returns from lead
ing centres of trade and industry give no indica-
tion OF anxiety regarding the future For time
there was slow retail distribution OF heavy
weight winter goods because the temperature
was unseasonably high and little snow fell. but
Of late conditions have favored reduction OF
stocks and dealers sending in supplement-
airy orders. Meanwhile wholesale and jobbing
lines report a demand for spring goods that In
dlcates widespread faith in the future. and
there is little dispute regarding prices. although
the average cost is necessarily high because of
advances in wages. fuel, raw materials and
practically all costs OF production.
Leading industries report more business I'm
sight than mills and factories can deliver on
time. and shipments are frequently delayed by
storms. The iron ana steel industry stands out
conspicuously as the oversoId branch OF
manufacture. and the report Of the United
States Steel Corporation for 1906 told a story
of prosperity never surpassed Net earnings
for the last quarter of $4I 744 1854 far exceeded
any thrce-month period in the history OF that
concern. and the new year opened with $3.50. us
tons OF untitled orders the books. or half a
million tons moro than the previous high rec
ord. Cancellations are always possible. but the
outlook could not we'll be more favorable in this
dominant industry Next in prominence is the
cotton manufacture, which cannot satisfy de-
mands. No spot stocks are available and for
ward business assures fun operation OF the mills
far into the future. Buyers no longer procrasti-
nate but seek to place contracts although
prices are at the highest position Of recent
years. The raw material has apparent In
fuen4e the market for cotton goods. prices
being sufficiently high TO assure profit even
If raw cotton should vance above its present
level Of II cents fer niddling uplands at this
city. Port receipts are 50 heavy that estimates
Of the crop constantly increased but ex-
ports are also phenomenal, and the activity OF
domestic mills assures demand that will leave
little surplus at the end OF the season. Raw
wool Is firm and in good demand the London
auction sale closing with high prices but new
lines OF woollen goods attract only moderate in
terest yet. Boston shipments Of boots and
shoes are falling off somewhat, although pro-
ducers have large contracts for spring goods,
and interest in fall samples is increasing.
Prices of hides and leather are well maintained
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The conclusion reached by the British ROYAL
Commission tuberculosis that the human