New-York tribune., 1908-06-01
MONEY AND BUSINESS.


that were circulated during the preceding ad-
vance every rumor disqueting, and the
moderate long account that had developed our
ing the rise made haste 10 liquidate with as
u+tle loss as possible It evident that
strong financial interests had withdrawn sup
port encouraging the reaction or at least maxi
ing no opposition to it. Attention suddenly
directed to the adverse features especially gov
ernment action and the possibility of crop in
Jury whereas favorable arguments were no
longer put forward, although still existing. The
prospect of lengthy holiday assumed disturb
ing proportions ard the few active stocks fell
sharply. Yet railway earnings had not fallen
off and money continued surprisingly easy
while industrial plants were resuming. Those
who looked upon the preceding advance as ex-
cessive were still cautious regarding the short
side of the market. however, and there was lit
tie selling for that account except by the pro-
fessional element that always gets in and out
Of the market quickly. London sold part of its
recent purchases. arbitraee balances being ad-
verse for the week. despite the support Of
lower Bank of England official rate Of discount.
slight rally on Friday afternoon made closing
prices somewhat above the lowest point of the
week.
Contra of loans in connection with spec
ulation in stocks the only factor tending
to make money easy, but rates remained prac-
unaltered.
hardening influences. Further exports Of gold
raised the total for this movement TO about
S4oOoOono and government deposits We're
reduced 70 little more than $50 100000. while
demands in industrial channels expanded as
more plants resumed and long deferred under
takings were reconsidered The effect OF our
shipments of gold to Europe was Shown In a
reduction of the British discount rate to 212 per
cent the lowest figure since the first week OF
September. 1905. A novel feature of last weeks
gold outeo was the first direct shipment TO
Switzerland ever recorded, but Paris and Ber-
lin were still the leading importers. In view
or the steadily increa sing balance IN favor Of
this country on merchandise account, exports
showing gains while imports decrease it is OBJ
vious that credits are being built up ABROAD
upon which New York may draw in case of
anv pressure when the crops are harvested next
fall and when general business recovers suff-
ctentlv to call for a normal amount Of currency
Commercial prospects grow steadily brighter,
and q few weeks more will remove the uncer-
tainty of Presidential nominations which should
give further impetus to the recovery Six months
Of conservative buying has reduced supplies
IN the hands of iobbers to an extent that fur
nishes statistical position of great possibilities
Even now the more seasonabie weather has
brought urgent orders from country merchants
that could not be readily filled. and when
fail demands begin to appear the contracts
that will come to manufacturers will leave
few wheels idle. All that is needed is enough
actual business or sufficient confidence to
start a movement to restore normal stocks
Last weeks trade reports indicated more OF
this DISPOSITION to provide for future needs than
was seen at any time since last October, while
retail distribution Of straw hats and light
weight wearing apparel put large sums OF
money in circulation. Warm weather is also
improving sentiment by advancing the leading
crops toward maturity, and harvesting of winter
wheat has begun in the southern sections. Some
extensions are still asked. but as a rule there
is little complaint regarding collections. Failures
have become much less numerous and bank
exchanges larger.
Sensationay high prices for wheat and corn
had nothing to do with the crop outlook. al
though excessive rain has caused some floods
and retarded planting of corn. Small elevator
stocks and a successful corner of the May
option forced quotations to abnormaly high
figures and when corn had risen % cents above
the price year ago many unfortunate oper-
ators on the short side of the market made
pryate settlements at terms satisfactory to
the long account. The rise in wheat did not
facilitate milling operations, however, North
western -four production being less than one
half Of the capacity of mills That prospects
were favorable on the farms was evidenced by
declining prices for next crop options While
Nav deliveries were selling at the highest point.
Exports of wheat were larger than in the same
week last year because prices were also in
hated at that time and foreign needs now
urgent Less vigorous support given to
cotton although that commodity is held firm
by increased spinning at domestic mills Two
expert crop reports were issued on Friday
placing both acreage and condition we'll above
last years but much depends upon the weather
during the next two months.
In the leading industries there is a gradual
increase in the percentage of active machinery,
and the army of the unemployed IL steadily
diminishing. Best reports received from
the cotton mills that will extend operations this
week buyers in the primary markets abandon
ing efforts to secure further concessions in
prices. There is also more business in sight at
woollen and silk mills. although the raw mate
rals of these Industries very weak. Foot
wear shops ara receiving fair orders. especially
for calf goods and heavyweight leather finds
a ready market. There is still little activity
in light leather suitable for the manufacture
of luxuries Hides firmly held, par
ticularly skins used in making heavy leather.
Building materials have declined to a point that
encourages structural work. and there is more
normal distribution. although the spring sea-
son has been unusuaily poor. Sales Of pig
iron expanded so rapidly at the lowest quota
tions that some recovery occurred almost i'm
medlately. and purchases far exceed require
Gated. Yet there is more inquiry for finished
steeI a good business in pipe being the best
feature.
It has been estimated that the heavy rains on |
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