New-York tribune., 1908-05-25
MONEY AND BUSINESS.


fact, it is obvious that the rise of about SIo
sbare discounted Improvement in the general
situation for many months ahead, and until
railway earnings regain the loss OF over ~
per cent as compared with last years hgures
there must occur much irregular1ty. furIher-
more so much manipulation has contrlputeu
toward the recent rise that none but the 1e"
loading operators can even approximate the re-
latfon of market quotations to intrinsic values
Obviously there is balance between the
present level Of prices and those Of year ago
in connection with earnings, railway SECURITIES
now selling only about 2 per cent lower than
at this date in 1907. whereas the loss IN earn-
ing. is ten times large. In other words
either the decline last year discounted the ap-
preaching reaction, the present advance dis
counts q coming recovery or both EvloehtiS
the market leaders have confidence that STOCKS
will be absorbed at near current prices anu
the advance was also intended to eStapilSh Il
basis upon which new securities could be IS
sued. Meanwhile, 1t is dangerous TO oppose tno
rise by active operations on the short side of
the market when funds are available at tne
easv terms now prevailing, although aggressive
selling at the close of last week encountered
little opposition Indicating a Willingness 10
have the short account extend itself
Call money loaned as low / per cent ana
most new business was done on the basis OF ~
per cent while high grade commercial paper
can still be sold at 30 per cent the BANKS
continue to hold abnornally large reserves
despite large gold exports and further Withdraw
ais by the Treasury. As the government deilcl'
for the fiscal year has already risen above H""-
100000 It is necessary to amend carrier es'i-
,nates Of the amount that the banks will be
compelled to surrender, and there Is less prop
ability of retiring maturing bonds unless i'm
the near future. restoring customs receip's 10
the large figures of the previous year THESE
dutIes on imports have declined SioeDoO. as
compared with the preceding fiscal year TO date.
After gold exports for this movement had risen
to S;4 900 there was a slight check on ac-
count of difficulty in recurring the metal, but no
depression has occurred in rates of foreign eN-
change and II Is probable that the Outgo Will
be resumed this week II European banks make
further endeavor to build up reserves
II is particularly gratifying to note dis
tinct improvement IN the general trade situa-
tion in the face OF adverse weather Excessive
rain at many points has interrupted the move
ment Of old crops to market. delayed the plant
ing of this years crops and undoubtedly cur
tailed attendance at retail stores. Nevertheless,
there are many unmistakable evidences that
trade is broadening, and the best feature Is
the disposition 10 prepare for the 1uturo Oh d
larger scale There is less hand-to-nouth buy-
ing which has for months discouraged oper-
ators in the primary markets. When orders
are placed for distant delivery It means that
confidence is becoming restored, and this De
s,rabIe condition is quickly reflected through
wholesaler and tobber back to the manu-
facturer. who Immediately increases produc-
ITO, Another factor that contributed to the
nr.narations FOR starting Idle machinery was
the agreement of textile workers in New Eng
land to accept their share of the general read
tustment Thousands Of spindles VIII now oe-
com. active and the return Of prosperity VIII De
fastened by the increased money put In clrcula-
ton as pay rolls expand SIX months hence
when the wage scale comes up again. 1t VIII
probably be possible to restore the old rates.
and meanwhile recovery is accelerated by the
intelligent action of labor leaders who possess
foresight.
Prices of commodities continue h1sh. the oniy
noteworthy exception being cut In sugar that
20, NOT made bv all refners The Federal Com
,,,v made so severe a reduction however, espe-
c,alv on prompt shipments. that 1t will be diff
cu,t 70 oppose the downward tendency, While the
preceding fall In goods seemed to warrant
some advantage to the consumer speculation
IN cotton was less active and interest was
transfc 'er from the July option to October de-
liverjes but Liverpool cables were su1hclent 10
nroduce a small net advance. Exports were
twantv Thousand bales larger than in the same
week last year. and there was slight increase
in the quantity brought into sight. Domestic
Influences about balanced, the support of much
larger consumption by the mills being offset by
fairIv favorable crop reports. Aside from the
rapid growth of winter wheat, some Southwest
ern farms beginning the harvest next week. all
news has tended to strengthen quotations.
There were some accounts of damage by Hes
sian fv exports larger, Northwestern
stocks smaller and many foreign crop reports
unfavorable. Corn also advanced. new high
records being established by the active option.
Nav deliveries being rendered difficult by heavy
rains In the interior. Vigorous efforts are being
made TO get corn 10 Chicago before the end OF
the month and the leading operator for the long
account has liquidated enough 10 cause some re-
action.
From the leading industries there come reports
of more business and larger production, although
comparisons with the corresponding week last
wear are far from satisfactory. Thus. ship
ments of shoes through Boston little more
than half as large in 1907, and the total for
the year to date is smaller than in the same
part of any year since 1894. Nevertheless. New
England manufacturers received fair volume
of orders for fall shoes, although deliveries are
not named later than August whereas contracts
are normally placed at this time up to October
But business Is increasing. and leather is pur-
chased more freely, while hides have advanced
more than enough to make up for the better
quality Of current saltings compared with the
take-ofr of earlier r,onths. Special sales of cot
ton goods were not only well attended. but the
auctions brought satisfactory prices and buyers
who reconstructed found the sale when
they arrived. This elimination Of stocks that
threatened the market has made the tone much
frmer, and several varieties are now quoted
higher Pig iron has found a good demand at
moderate concessions in prices, and restoration