New-York tribune., 1907-10-07
MONEY AND BUSINESS.


to pay office expenses of the fortunate brokers'
and in addition very few earn interest on the
Investment of $4,000 more in their Stock
Exchange membership. Low prices encourage
investment purchases, this branch of the busl-
ness being swelled by large dividend and inter
est payments in the first week Cf October. out
bonds attract more attention than stocks in this
connection. Gross earnings last month were
much larger than in the corresponding period or
any preceding year. but increased cost of opera
ton will probably leave little gain in net earn
ings. Car shortage is beginning to be felt, and
freight business expands as the crops are mar
keted. A few stocks still monOpolize most or
The speculative trading; about half dozen usu-
ally supply the bulk of the business It was
demonstrated that extensive commitments on the
short side of the market were dangerous when
the price of Canadian Pacific reacted violently
aggressive buying quickly raising the quotation
many points. but the strength disappeared when
the short account had lqudated. Yet there was
logic in sales of that stock because almost every
dispatch from the Canadian Northwest reduced
the wheat estimate, and general business
throughout the Dominion is distinctly backward.
A similar campaign against Amalgamated Cop
per seemed TO have reason in the fall in price
of the metal. but here also the short account
was forced to liquidate at a loss and the entire
the week with small net change.
Little additional stringency was caused by the
quarterly dividend disbursements, although call
money rose to 10 per cent As the week advanced
there was more difficulty in securing term loans
at less than 6 per cent. but at that figure con-
siderable business was transacted for periods
as lengthy as six months Probably the market
would harden were there any extensive demand.
but the supply has appeared about equal to
needs. This applies only 10 borrowing on good
Stock Exchange collateral which the banks are
satisfied can be marketed readily. Very differ
ent conditions exist in mercantile circles. Many
interior bankers who came East fo- the conven-
tiou purchased mercantile paper at per cent,
but with the conclusion ofsthis business it be-
came almost impossible to borrow at IA per
cent. This attitude of financial interests toward
mercantile credits forced many Of the recent
large failures. and will cause much distress
among manufacturers and traders who find col
lections coming in irregularly II is improving
the general situation, however, by preventing
speculative real estate and building operations.
and Is reducing the overeXtension that was a
menace healthful business conditions With
the surplus reserve of the associated banks prac-
tically wiped out. and cash going TO the interior
for handling the crops. the only immediate hope
Of relief is the Treasury which Is still charging
deposits Of public funds The increase OF SIG
100000 I'm the amount OF money in circulation
during September absorbed without any
apparent effect. and some foreign lending in the
exchange market is scarcely noticed. while hope
OF gold imports is deferred by Egyptian demands
upon London,
General trade IS still hampcred by lack of
funds. preparations for the future being marked
by a conservatism that is the more justified be-
cause Of the abnormally high position of prices.
rib Of al
IS heavy seasonable weather in most sections of
the country providing n demand that Is clearing
up stocks more rapidly than was expected. partly
because initial buying was restricted AS sup
plies are reduced there is supplementary bust
ness for all departments back to the manufaCt-
urers which improves the tone. especially at
the West and Southwest. Aside from the shoe
workers strike at 81. Louis and the longshore-
mems trouble at New Orleans interior progress
is rapid and the volume Of business at the lead
ing cities is shown by larger bank exchanges
last week than in the corresponding week of
1906 by so per cent at Minneapolis. 81 per cent
at Kansas city about Is per cent at Chicago
and St Louis, and smaller gains at Louisville,
Cleveland Cincinnati Pittsburg and Baltimore.
At the East there appear small losses for Boston
and Philadelphia, while decrease of 20 per
cent for New York represents the only really
adverse comparison This Is largely a Wall
Street result. although there is significance in
The decrease in real estate titles searched by
the companies that make a specially OF that
work Fall carnivals festivals are In progress
at many interior points, bringing large numbers
of country merchants to the primary markets.
Kansas city alone estimating a transient in
crease in population of 10000 more than at any
previous carnival. This means a big increase
in trade and active shipping departments for
some time TO come
Great strength appeared in the grain markets
in response to a remarkably vigorous export de-
mand, wheat attaining the highest quotations of
the movement. Actual shipments were only
moderately increased compared with the same
week last year. but the foreign business trans
acted promises heavy tonnage hereafter. Bad
crop news from many nations was the incentive
to securing the surplus from this country but
1t is surprising to the apparent indifference
of exporters TO high prices. Wheat is now
selling about 80 cents bushel higher than it
did year ago, which would cut down shipments
unless conditions abroad were really distressing
Corn is also firm considering tho rapid progress
of harvesting. and another week without severe
frost will assure an ample yield. Cotton crop
estimates increased the amount in sight
becomes more normal, and the final ginning re-
turn of September % does not make decrease
of % per cent for the opening month. There is
no immediate danger of frost, so that a final
yield of 100000 bales is by no means bevond
hope Exports make a close comparison with
last years figures. and dispatches from the
South indicate that planters are not making any
effort to market their staple, to which is prob
ably due the much slower expansion OF mort
receipts, that were 100000 bales less than in the
first week of October, 1906.