New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-06
MONEY AND BUSINESS.

there is q slight improvement in the undertone,
prices holding exceptionally firm in the face Of
adverse crop reports that might be expected to
produce much liquidation. During the months
OF sagging prices 1t is probable that stocks were
absorbed by powerful interests who are too eX-
perienced to be frightened by the customary
spring stories of disaster on the farms. Support
conspicuous last week in Union Pacific,
which has occupied prominent position in the
market ever since its sensational 10 per cent
dividend was announced. Even those who pre-
dict an early return to q lower rate do not seem
DESTROYS of taking a position on the short side
at present prices. While the quarterly state
ment of the New York Central showed large
decrease In net earnings on account of heavy
expenses there were many favorable statements
notably by the Steel Corporation and the Erie
Railroad. and all net earnings available for this
year thus far exceed even the good record estab-
lished in 1906. A Stock Exchange membership
sold at $4,000, an advance Of $500 from the
low record for many years recently recorded,
but the volume OF business is still light that
expenses being reduced. Many branch
offices and private wires have been abandoned.
and the numerous changes in Wall Street firms
indicate that dull summer Is anticipated.
To this fact Is largely due the easier call
money rate. interior correspondents being very
willing 10 have balances put out in this market
on almost any terms provided Withdrawals may
be made quickly when home demands appear
Light speculative demands render the call rate
steady at about = per cent. and short term time
loans are little higher. but the real financial
situation is shown when longer periods are
considered. An example is the latest Atchison
issue at par of ten year bonds paying per cent.
Pressure at Paris to replensh It's gold supply
has withdrawn more specie from London, and
hob ted
expected reduction I'm discount rate by the Bank
OF England. Foreign investments in this Coun-
try OF a permanent nature. especially British,
are increasing. but temporary loans through
sales OF foreign exchange are being settled as
they mature. Both these transactions are favor
able in their influence on the future monetary
situation here. permanent investors assisting the
development of the country. while the menace
OF a sudden drain on account OF finance bills Is
being removed in a gradual manner that causes
no embarrassment. Gold has gone 10 Canada
from New York. and cash movements Of the
week were adverse to local banks on the whole
but the official statement OF total money in cir
culation for the entire country on May l
passed all records. averaging $34 Ii for each OF
the S5S3SOOO inhabitants. 20 cents higher
than ever before. notwithstanding the increased
population
All other events Of the last week were OF less
significance than the weather a factor OF in
iuence not only current business, but as an
indication OF the future. Retail stocks of spring
and summer merchandise have not gone into
consumption at the enormous rate anticipated.
and active trade cannot be expected until warm
weather is general throughout the country. \
few cities have enjoyed fairly satisfactory con-
ditons hut most sections are several weeks
backward. and the probability OF fully regain
In lost
tions reflect the gloomy weather. although pay
ments are much more prompt than could be the
case II previous years OF prosperity had not
put dealers In position 10 meet most obliga-
lions without waiting for current sales. on
this account 1t may be possible TO carry over TO
next year part of the stock without serious re-
suits. except that producers viii then feel the
smaller demand. A week Of seasonable weather
would do much to change the situation. however,
and there is no occasion for anxiety until con-
ditions more definitely established.
Weather on the farms is attracting much at
tention also because that affects the future
most vitality. Big crops this year mean con-
tinued prosperity without a doubt; average pro-
duction on the farms would probably maintain
national activity, but crop failures would have
widespread influence of a most deleterious char
acter. Railways would not have the tonnage
OF grain TO haul the return freights of other
goods that the farmers purchase. The manu-
facturer would find machinery Idle and all
classes would feel the baneful effect Hence
every dispatch is closely scanned and the sharp
rise in wheat quotations was viewed with alarm |
The erratic movement OF prices indicated that
much of the early advance was due to aggres-
sive speculation. and hasty profit taking often
checked the rise. Drouth relieved by ample
precipitation. but IL often in the form of
snow, and the average temperature much
too low for best results. Some extravaganza
estimates reduce the winter wheat crop 100 600
900 bushels. but conservative experts do not
weather continues unfavorable for some time
longer.
Cotton also advanced considerably activity
being conspicuous in the July option
which supported by the leading operator |
ostensibly because of a belief that the old crop
was practically exhausted. Statistics of supply |
show that recent weeks have caused larger re-
ductions than in previous years but port re- |
ceipts are still of size, and exports are not |
expected to continue at the rate of million |
bales monthly. Much replantng may be neces- |
sary. and the cost of seed Will make the opera |
ton expensive. while the lateness of this part !
or the crop may expose II to unusual danger, |
but on the whole. there is no certainty that |
the cotton production this year will not be ample |
for all needs. even II domestic mills continue as
busy they have been Of late. other manu-
factucers are also we'll occupied. except where |
strikes interfere. several unexpected troubles |
having been added to those pending before Nav |
l. Structural and shipping work feels the effect |
OF labor controversies most seriously but the na |
tiOn's activities are not extensively handicapped
The Steel Corporations quarterly report indi- |
toa az