New-York tribune., 1908-02-10
MONEY AND BUSINESS.


earlier than usual, owing to the dulness OF tne
security market and the lack Of important de-
velopmen.s in financial circles The appear
ance of Mr.. Bryan downtown on THURSDAY also
increased political talk Efforts to arouse pun
lie interest in speculation were abandoned last
week. and it looked though the market ieao-
ers had decided to encourage the extension Oh
the professional short account. The subsequent
aggressive selling depressed prices OF the acti'e
issues although the net decline in the average
of sixty railway shares only about ii. ana
total transactions fell to very low figure. AS
usual in a dull market, the value Of stock Ex-
change membership declined, one transfer be-
ing made at $4,000. against $4,000 a few weeks
ago The last sale was $4,000 below the hlsn-
est point on record. Meanwhile the pad news
seems to be about all out, and latest weekly ng-
ures of railway gross earnings make shshtiy
less unfavorable comparisons with last years
returns despite the interruption OF snoWstorms'
while reductions in operating expenses encour-
age expectation of somewhat better exh1plts
of net earnings In view of these developments
it NAV be found desirable to start campaign
against the short account In the near future.
which should produce higher quotations, at least
temporarily.
Money accunlulates in the banks. the small
demand in speculative channels holding call
rates at 2 per cent or less, and time loans can
be secured at per cent for twelve months.
There is still some discrimination against COM
mercial paper especially by local banks, but
outside institutions purchase well known names
at ~ per cent. Under the new system of bank
reports 1t will be possible to make intelligent
comparisons for the first time, although the fig
ures are of little value the start because SINH
lar returns are not available for earlier dates.
The abundance of the cash supply is evidenced
by the official statistics Of money in circula-
ton February 1. when all records were far
eclipsed both In the aggregate and per capita
allowance. Gross gold in the vaults Of the
Treasury has steadily risen until 1890, 600, 900 is
the new high-water mark. Gold imports have
ceased and the only outgo small ship
ment to Argentina. This movement is usually
moderate, representing settlement by New York
for part of Londons grain imports. Although
the wheat shipments from South America PROM
ise to be unusually large this season, there is no
reason to expect heavy drafts on this money
market because this nation is piling up cred
its by the abnormaly favorable merchandise
movement Government deposits in national
banks gradually reduced and the abundance
of available cash in circulation is causing bank
note redemption at an unprecedented rate.
Trade reports conflicting that it is i'm
possible to discern any net change in the situa-
ton. At few interior cities there is a definite
change at Minneapolis and Kansas City show
ing gains in comparison with the corresponding
week last year, but In most instances there is
the usual loss of about Is per cent. Snow and
severe cold became widely distributed. stinu-
lating retail sales of seasonabie merchandise.
but wholesalers and jobbers complain of
the reluctance with which dealers prepare
for the spring trade. It is evident that cash
or confidence is low, but the consequent de-
pletion of stocks promises ultimate revival of
demand from primary markets. Meanwhile
manufacturers restrict output and there is no
burdensome accumulation. This condition makes
the statistical position strong, but curtails the
purchasing power Of those who longer
fully employed. Extravagant estimates of the
number of idle wage earners have been circu-
lated for speculative effect, but figures on the
subject have been compiled that are even ap-
proximate. 1t would be far from accurate TO
take the number Of unemployed at few plants
and apply the ratio to all industries
widely different conditions exist in the various
branches Of business and even in the same occu-
patton at different cities. Yet reports of this
nature receive credence. Moreover figures
piled at the beginning of this month would not
apply to-day, one week having brought resump-
ton at numerous mills and factories.
Option trading in cotton became very dull and
almost wholly professional, the outside public
awaiting more definite information regarding
the current yield and probable consumption.
Thus far foreign mills have taken raw material
freely, last weeks exports being almost Identical
with those of the same time in 1907. notwith-
standing the higher prices prevailing, but
frequent rumors of preparations for short time
at Lancashire have effect on trading. Cotton
comes into sight little less freely than a year
ago and Northern spinners buy conserya lively,
but Southern mill takings well maintained.
Quiet conditions have also prevailed ct the
grain exchanges, although prices recovered part
of the previous weeks severe decline While
some reaction to be expected from an over
sold market, especially when receipts Of wheat
at primary markets were decreasing there is
little evidence OF interest except when cables
received from Argentina. The exportabe
surplus of that nation is the dominant
factor in the wheat market. An element Of
strength was the report that Russia was buying
Argentine wheat in Liverpool. an almost un-
precedented occurrence. Even if the Argentine
surplus is 15O.OOO0OO bushels it cannot make
up the deficiencies of importing nations and
spare much grain for countries normally ex-
porters Shipments from the United States con-
tinue to surpass those OF the same week in re-
cent preceding years, and Northwestern mills
are producing more flour than at this time in
1907. These figures promise to reduce stocks at
the end of the season. which turns attention to
prove the condition of winter wheat, although
the prevalence of insects has begun to occasion
some uneasness. The fact that quotations have
not receded in the proportion as other
commodities should stimulate planting OF spring
wheat very largely this year. yet there is no
evidence of fear that prices will be depressed
| deliveries next July and September being pur-