New-York tribune., 1908-08-31
NONEY AND BUSINESS.


is due to reckless operations on the short side
Of the market the first effect is to advance
prices because Of the forced covering Of the big
speculative account, and the secondary effect is
depressing because of the numerous small
traders who are frightened out OF the market
by the magnitude of the operation. Both these
developments followed the A. O. Brown lfqu1da-
ton. but throughout the week there was evil
dence of support by strong interests which had
confidence in the future Of prices. With money
available at nominal rates Of interest 1t Is OBJ
vious that powerful manipulators encounter
difficulties in sustaining the level OF security
prices. but the element of uncertainty is the
distribution Of large accumulations at present
quotations or higher. Difference Of opinion on
this point is what makes speculation. Mean
while the conservative investor Is turning at
tention still to bonds in which there has
been some manipulation also. It Is true but the
element Of safety Is considered enough to war
rant the smaller return on the Investment
Railway earnings improving, however. and
there is less talk of receiverships. A decline OF
50 900 IN price of Stock Exchange member
ship to $4,000 Is not considered significant,
business recently having shown q tendency to
expand.
Ease in the local money market promises to
continue well into September at least, cash still
coming from the interior balance, although
some transfers for crop moving noted In
this connection shipments of gold to Canada
the feature. over $1O,0OO.OOO having gone across
the Northern border since the movement started
q few weeks ago While it is stated that the
money is taken to move the crops, the direct
cause Of the outgo is the placing Of Canadian
municipal bonds in this country because Of lower
interest charges. Further shipments
pected unless domestic needs expand sufficiently
to harden money rates here. IL is also reported
that the West Is buying securities here to an
amount that offsets Withdrawals by the South
for handling the cotton crop. At any rate, local
associated banks hold enormous balances, and
loans made for three months at 2h per cent.
which does not suggest any fear of pressure this
fall. International financial developments
interesting Paris strengthening its gold reserve
each week. although 1t has eclipsed all records
for some time, and 1t is thought that the Lon
don quotation is bid up to abnormal point
because the long discussed Russian loan is about
| to appear. Germany Is also accumulating gold
by large direct importations from Australia.
General business is making fully as satisfac-
tory progress as could be expected in view of
the blow that confidence received last fall and
| the amount of actual loss involved IN the sub
sequent bankruptcies. Commercial failures are
decreasing in number but few very large de-
faults maintain total liabilities at high point
monthly comparison in this respect since Feb
ruary. When 1t is considered ttat over half
the months liabilities supplied by three
large failures and one Of these wholly specu-
lative, the exhibit is not as discouraging as 1t
at first appears. Fall trade is opening fairly
we'll, interior merchants stocking UP moro
liberal scale than at any time since year ago,
and at some points the volume Is larger than in
1907. Measures OF activity continue to show
progress in the right direction, bank exchanges
at the leading cities almost equalling those OF
a year ago. despite rather heavy losses at PHIL
adephia and Baltimore. and even those cities
report a better feeling in many branches of
trade and industry. A somewhat sensational
decline in the sugar marke. was the only i'm
portant development of the last week among the
minor commodities.
Cotton is still the most erratic of the leading
staples. rallying sharply when heavy rains
caused foods at soma points. although later
statements indicated that the damage on plan
tatons was much less than in the cities. Fur
ther curtallment of domestic spinning and re-
iteration of estimates OF record breaking yield
dominated tho market taking spot middlinE
uplands moro than four cents below the quotation
ruling a year sgo This difference Of $40 bale
Offset much Of the benefit which our foreign
trade derived from increase to fifty thou
sand bales weekly in exports. or about half tho
quantity that came into sight. Despite the gen
eral tendency to delay operations at Fall River
cotton mills, Northern spinnerr tak1ngs last
week exceeded tho figures for the Same week in
1907 Grain prices do not Yield before the
broadening movement to primary markets.
which is dus to foreign buying In tho case OF
wheat but corn ana oats are sustained without
any outside aid. Too much rain for best bar
ve.ting results In tho Canadian Northwest was
a STRENGTHENING wheat influence. and some
gloomy cables were received from Russia, but
tho domestic crop promises to be Of good size
and quality Northwestern nour mills increase
output and there Is less complaint OF dull trads
in that business
Industrial reports are least encouraging <rom
the cotton industry and most gratifying dom
the steel trade. More spndles ara added to To
Idle list both at the North ana South. becauss
buyers will not place orders for goods when a.
most every day brings q decline In the cost of
raw material Tho goods now being sold fro
ouently represent Q loss, because OF the high
price at which the staple was purchased. OF
woollen goods there Is q better movemenf, es-
pecially in skein dyed and piece dyed worseedA
and some mills are well sold ahead Dastsrn
wool markets arc steady at tho reoent moderate
recovery in prices. Shoe shops arc receiving
some late orders from wholesalers whose de-
pleted stocks arc indicated By the frequsnt re-
quests for quick shipment. but producers are
filing orders placed lsss tardily. and there u
much complaint of deliveries by the procrasti-
majors who held back for lower prices In sxpsc-
tation that tho rise In leather could not be
maintained: but there IL no prospect Of radical
cheapeninK in tho hide or leather markets
Steel mills arc beginning to receive orders In
the lines that hav0 bAen most inactive. and