New-York tribune., 1908-05-04
MONEY! AND BUSINESS.

MONEY AND BUSINESS.
Vigorous upward movements of securities dur
ing the last fortnight are encouraging In a much
broader sense than the mere profits that nave
accrued To operators or the rise in value of Ger
+ieca+es held bv investors When the average
of the sixty most active railway stocks rose
above $50 for the first time in six months the
advance was partly due to sbilful manipulation
.gainst the short account but when this artifi-
ciaI factor was removed and trading fell below
a million shares daily there little reaction
This sustained strength and the ready absorp-
tion Of new bond issues suggested growth OF
confidence that is most gratifying. Wall Street
is usually we'll in advance of actual business
and Industrial conditions. and the belief is
gaining ground that the last rise In prices OF
securities discounts the recovery in the general
situation that has been anxously awaited for
the last six months Railway earnings make
most unsatisfactory comparisons in the gross,
but expenses of operation are being held down
to a degree that promises less change In net
earnings in April as compared with the same
month last year. The Pennsylvania Railroad
pursued conservative policy by its moderate
reduction in dividends which should be followed
by some other companies that increased dvi
dends largely during recent years of big earn
ings Activity at the Stock Exchange brought
another advance in market value Of member
ship, the last sale showing gain of $4,000, as
compared with the lowest figure of the last
season
Bank reserves continue TO rise in the face Of
gold exports. increased borrowing in connection
with security trading and Withdrawals of gov
ernment deposits. Cash holdings are increased
by liberal receipts from the interior and much
larger Treasury disbursements than receipts.
the deficit in April alone amounting TO $4,000.
public
has occurred as yet, but the Secretary has called
for s45, ,O0O0 900 by May %. This will not provide
enough cash to retire the bonds maturing in
August however. and another drain the
banks will be necessary unless these 900
of 3 per cent bonds are refunded into the per
cent ccnsols of 1890, provided by law. Gov
ernment expenses are increasing while receipts
diminish. but large balance was accumulated
during recent years OF prosperity. while both
customs and internal revenue receipts will ex-
pand rapidly when trade conditions become nor
NAL. At the present rate, however Treasury
Withdrawals in May will be returned 10 the
July. Consequently, rates continue low even
commercial paper being placed at easy terms
and the usual pressure on account of monthly
settlements did not change quotations for
money, although the tone was little firrner
April proved a disappointment as to volume
of mercantile transactions spring sales com
pairing most unfavorably with preceding years
AT most points the temperatu ture was unseason-
ably cold, but the chief drawback was the
pronounced caution. Dealers will not order
goods beyond the business in sight which is
developing a strong statistical position that
viii great pressure quick deliveries
when confidence is restored. Shipments of all
merchandise are now very light, as attested by
the statement Of idle freight cars, which were
more numerous on April Il than at any pre-
vious time this year. open weather has not
stimulated building operations to the extent
that expected. which makes the markets
for lumber and other materials very quiet. The
general tendency of commodity prices is down
ward, except for some sensa tionaI movements
in grain. Kansas City still stands out as the
only important centre that records larger bank
exchanges than year ago, reporting a volume
of jobbing and wholesale trade that indicates
sustained faith in the future.
Violent variations are recorded at the lead
ing commodity exchanges, cotton options ris-
ing sharply on reports of frost, but reacting
readily when the weather improved
prominent trade expert estimates an increase
of per cent IN the acreage devoted TO cot
ton. while the labor situation encourages ex-
pectation Of thorough cultivation and harvest
ing. Both exports and port receipts make poor
while spinners' takings are very light specu
lative activity exceptional in Nav wheat
at Chicago, the leading operator taking all
deliveries and forcing the short account TO
cover contracts at heavy losses Support was
provided by small shipments 10 Europe from,
all surplus nations, high prices abroad re-
stricted receipts at primary markets and q
foreign demand that promises liberal exports
when the grain can be moved 10 the seaboerd
Snow has fallen at abnOrmally late date
in some wheat sections. but there is no evi
dence as yet that any serious injury has re-
suited.
More machinery is idle than at any time
since the contraction of manufacturing activi
ties began. six months ago but at MANY nlants
there Is a gradual accumulation of orders that
promises resumption shortly. Iron and steel
producers stubbornly refuse to make the con-
cessions In prices that consumers insist unon
ana tne leading interest maintained its dividend