New-York tribune., 1908-09-07
MONEY AND BUSINESS.

the year, there was a sharp break last 1hufs-
day. led by Generalization in the properties SO
extensively advertised by the Boston operator
While it is difficult to assign any specific cause
for the reaction or fix on any event as marking
the start of the liquidation. there was more con-
nection with the publication of the American
Smelling and Refining Companys report than
anything else Surely no one expected state
ment for the fiscal year ended April 80 TO con-
tain grounds for enthusiasm, embracing, as 1t
did six months of depression in all business
but II seemed to give the signal for attempting
to take profits The market was in no cono1-
ton to absorb the go 900 shares hurriedly forced
to SALE and the day closed with a loss or
points for the common stock and for the pre-
ferred Other active issues sympathized to the
extent of a point or more, having the Iur'ner
adverse influence of heavy selling for foreign
account because of the Moroccan situation Yet
there developed a surprising undertone OF
strength on Friday many traders on the short
side evidently preferring to reduce commitments
before the extended holiday. In view of the
continued ease Of the money market 1t was a
conservative attitude, manipulation FOR n1sner
prices has every facility.
Call loans at 1 per cent and term accommo-
dation only little higher emphasize the un-
seasonable ease in the money market and re-
serves of the associated banks increase instead
of declining, as is customary at this time OF
wear when the movement Of the crops usually
withdraws large from local institutions
Official figures Of the amount of money In cir
culation on September 1 showed a large gain
for the month of August raising the average
per capita above s35 for the first time In several
months; but there is still small decrease in
comparison with the highwater mark established
on February 1. Last months change was chiefly
due to transfers in Treasury holdings, the
total stock in the country, including government
funds was little altered On regular operations
Treasury receipts continue to run behind ex-
penditures the deficit for the fiscal year now
standing at about s31,500,000, but there is no
immediate prospect of Withdrawals of govern
ment deposits from the banks. although those
institutions were never in better position to
surrender cash. International exchange mar
kets remain exceptionally quiet for the season,
sterling rates declining little because offerings
of commercial bills promptly absorbed by
speculative covering and also a demand for re-
mfttance against foreign sales of securities. The
Bank of England shipped some gold to South
America. but still holds abnormally large
serve. Silver touched new low record for
cent years, and one result of recent attractive
prices was a large shipment from San Francisco
to the Orient.
Comparisons of last weeks bank exchanges
ures of commercial activity, because Labor Day
came earlier last year and the week contained
but five business days Even in this compari-
son, however, some cities show a decrease for
1908, especially at the East, aside from New
York. where clearings were swelled by specula-
ton. Mercantile collections still irregular,
despite the readiness with which accommoda-
ton is extended on commercial paper. Retail
trade is reported as improving gradually. espe-
cially in staples, and fall millinery openings
well attended. In fact there IS much interest
in all wholesale and jobbing departments, deal
ers in nearly every section of the country pre-
pairing for larger demand than in 1907. Sew
eral state fairs and other large gatherings have
| brought country merchants to leading centres,
especially at the Northwest and Southwest, and
there is much encouragement in the confidence
exhibited by these dealers. A tangible evidence
of the larger distribution of merchandise is
| found in the latest statistics OF idle freight
| cars which are diminishing at the rate of about
fourteen thousand each week. and commercial
| failures are also returning to normal, although
| both these records must show considerable i'm
| provement before the exhibits of recent years of
| unexampled prosperity be equalled Pre-
| Iiminary figures of building permits for August
| do not equal the July statement.
Spot cotton continued its downward movement
| last week losing full dollar bale, and at the
| close there was decline of S21 % in comparf-
son with the corresponding date in 1907. Sew
| eraI statements appeared of the cotton crop for
the year that ended September /, all ap
| proxfmately close to eleven million five hun
| dred thousand bales, while exports fell almost
| million bales behind those of the preceding crop
wear There were no developments in the new
crop situation weather conditions remaining
! favorable to a yield of about fourteen million
| baIes The new season opens with a splendid
gain in exports, but domestic consumption is
| still heavily curtaed. Speculative liquidation
! was depressing in both cotton and grain at the
! close on Friday, many traders taking profits
| rather than hold contracts until Tuesday
| ing This selling was especially noteworthy in
| the wheat market which had risen steadily
| q vigorous revival in the milling demand. Cash
| wheat handlers had been forced TO buy freely
| TO meet maturing obligations made with
| porters| some time ago, while speculative short
| sellers also became discouraged by the steady
| rise in prices so that the level was very high
| at the close even after the profit taking sales
| on Friday Northwestern -four mills have
ceived large contracts, both for home and for
| eign account which provides greater activity
| than at any recent date.
Flour mills are not the only manufacturing
| plants at which idle machinery is decreasing.
| gradual progress being noted in the iron and
! steel industry and footwear shops are well oc-
| cupied woollen mills have also secured enough
! initial orders to warrant the extension OF out
mt hut cotton spinning still awaits some evil
! dence that the price of material has reached
! bottom More interest in the drygoods jobbing
! market is an encouraging sign yet cotton mill
| oean+s oxnerence much difficulty in selling