New-York tribune., 1907-09-09
MONEY AND BUSINESS.

Recovery in securities carried Still fur-
ther last week. the average of the sixty most
active railway stocks rising about 81 a snare
above the lowest point of the decline WHICH WAS
| Ss7 d. quoted two weeks ago. Ihat average
| co,,nerad with S12O99 for the same stocks at
the highest point last year. and it would seem
as though the fall fully discounted any chech
that has occurred is likely to occur in gen.
eral business If that were the only explanation.
| as many authorities insist. According 10 theSe
| brokers and bankers the moderate Improvement
in Wall Street sentiment is evidence that reao-
ton in commercial and industrial progress mas
oaasAd and there is now reason 10 anticipate the
| return Of a large part of the $50 that has been
lost IN the average OF quotations for railway Sc
curities Unfortunately. the monetary horizon Is
| by no means coudless. although the outlook mas
| improved Much will depend upon the result OIL
| the local bond sale. II the issue Is disposed OF
at S1O4 or better, it Will probably Indicate tnat
the worst IS over. but IN case the bids are eloo
! or lower tho brief season Of confidence may re-
/ ceve a setback. Substantial investment buying
has continued to relieve the pressure somewhat
and the Indifference Of the market to the first
! suspension OF a prominent firm during the re-
cent period Of low prices adds further testi-
rnony to the strong position OF stocks. Liqul-
dation has been sufficiently complete almost to
| eliminate the dangerous factor OF weakly held
margin accounts and tight money tends to
maintain this wholesome situation.
Call money averaged fractionally higher, out
loans extending over the end of the year ceased
| 10 command a premium above the legal per
cent There Is still suggestion of ease IN the
money market. but the stringency Is less notice
able in Stock Exchange borrowing because or
the light demand. Another factor OF temporary
relief is the lateness OF the crops. which delays
hi Ia ha
Treasury is gradually distributing funds among
the banks although this factor is still more sem
tirnentsl than actual because tho official report
shows that deposits OF government funds have
increased very little yet. Money in circula-
ton on September I averaged S32 80 per capita,
an Increase OF > cents for each OF estimated
population of s6.311 900. as compared with the
holdings on August /. The gain was almost
wholly in the new SO gold certificates. With
the continued decline in quotations Of sterling
exchange there has come an end OF even special
gold exports on which foreign banks pay inter-
est in transit and a movement of specie west
ward across the Atlantic might Re considered II
European banks IN a stronger position
Some exchange has been supplied by purchases
of American securities. but the principal factor
was the sale Of bills IN anticipation OF exports
OF farm staples. Although the outgo Of grain
and cotton IS not yet heavy, export inquiries are
| numerous and much freight room Is being en-
| gagged.
Those who look only for evidences OF reac-
| ton in trade continue TO find proofs OF their
pessimistic theories. and the extremely sanguine
investigators equally able to demonstrate
their position. Disinterested examination of
trade reports discloses evidence that both are
wrong. In many sections OF the country there
is no loss of confidence. and plans for exten-
axyfCo NJ uyn
| good harvests promise funds for a big demand
| In all commercial channels Elsewhere the
scarcity OF money forces postponement OF
necessary work, and losses in market value OF
securities weaken the borrowing power OF
| many who would gladly expand IL funds could
be raised Mercantile collections also ir-
| regular. parts Of the country finding no
| delay, while unusual extensions asked at
| other points. Jobbing trade is reported larger
| than last year in large majority of cases. but
there are instances of extremely conservative
| buying. Leading manufacturers. rule, have
enough orders on hand to maintain machinery
! fully active for some months much new busi
| ness being placed last week at steel mills and
shoe factories, and officials in charge OF the dis
! tribution of immigrants announce that the de-
| mand for labor cannot be filed, despite unprece
| dented arrivals of aliens Statistics of foreign
| commerce show relatively larger gains in I'M
| ports than exports, though both exceed all previ
GUS years and railway earnings make favorable
| comparisons but failures larger, and bank
| exchanges at Eastern cities fall behind those
! of a year ago. while the West and South con-
| tinue to show gains. The net result of these
| conflicting statements is current volume OF
| business about the a year ago. which
| was above all previous records for the season.
| with tho future dependent upon crop results
and Spe money market.
Agricultural conditions are uncertain as is
| customary at this season. but there is great
element in the farmers favor. Prices OF all the
| important crops are high at the harvest Time
| which means increased distribution of funds
| to the millions OF producers. allowing for
an average reduction OF 10 per cent in quantity.
| Heretofore most of the crops have passed into
| warehouses elevators before the statistical
! position was found to warrant dollar wheat
| and "ifteen-cent cotton" The Importance Of
| large returns to the farms cannot be overes-
i timated. During the last week cotton held
| fairly steady by more reports OF damage In
Texas and unusually light port receipts indicate
| that the early picked staple is not being hur-
| ried to market Planters have just finished
| Jason In which the crop was over 3D. 900
| bales and the average price was higher than
In any year since the Civil War; so that there