New-York tribune., 1908-04-20
THE WEEK IN WALL STREET.

Ga,- boIidav set for the end of the week and the
price changes at the close OF the ioui uaS'
Of trading were as a rule. unimportant IN ex-
tent The market tone was not that OF uiscoui
agement but of the news developments OF inc
week there were none which could be regarueu
as distinctly favorable. halt appears 10 hdNe
occurred in the Improvement in genera business
conditions noted from week 10 Week VI lo'o'
manufacturers showing no disposition TO IN
crease their output and merchants dong niue
in the way of placing orders beyond lhose rep
resenting immediate requirements. the hght-
ness Of the demand from the distributors OF
merchandise due to the lessened purchasing
power of the consuming public, naturally WORKS
out as one of its results additional reductions III
wages and laying off of employees. An lhdlca-
tion of the setback to business is seen III the
fact that the number OF idle freight cars IN TINS
country and Canada. which for some time had
been decreasing, increased nearly 93Oo between
March Is and April !. But the process of re
covery from the business depression which
reached its most acute point last fall, is neces-
sary an exceedingly slow one. in the course OF
which checks and reCessionS may be expected
from time to time, the waters of the inflow
ing tide appear to reCede as we'll as advance,
while slowly and certainly the tide is rising.
Confidence is being gradually restored, and with
its full establishment the country will enter
upon another period of prosperity. An aid of the
most important sort would he abundant h2r-
vests this year. and up to the present all indi-
cations favor the hope of excellent crops for the
latest reported condition of winter wheat gives
a
good progress is being made in the seeding OF
spring wheat, and cotton.
Money from the interior has continued to flow ,
in heavy volume TO this centre during the last
week only to swell the surplus stores Of the
local banks for SO restricted are the operations
i'm the securities markets and Curtailed are
the demands from business interests, owing to
the general depression and the Impairment Of
confidence that it is relatively almost as diff
cult 10 find profitable employment here for the
money as in the cities which forwarded ii TO
New York. because of the impossibility Of them
selves getting any direct return from IL In the
last week the associated banks of New York
have gained S11. 100000 in cash holdings, the
greater part Of this representing receipts
from interior points this gain being so large
that. despite a heavy loan expansion and 500
100000 increase in the deposit item Saturdays
bank statement showed an addition of S6.101.150
to the surplus reserve, which is within a
few thousand dollars of S50O0O,OOO. With the
surplus png up thus pidly, il is not surpris
ing that the money market displays extreme
ease with call loans made at ~ and IA per
cent and time loans for the various maturites
especially the nearer ones, obtainable on terms
more and more favorable to the borrower A
call from the Secretary of the Treasury for the
return of another instalment of the 100000
of government money still deposit with ma
tional banks throughout the country. Of which
the banks in this city hold about S430OO000. or
S10O00G0 less than the amount of the surplus
reserve of the Clearing House institutions, is
expected at any time. and may be for a sum as
high as SJO.0O0.O10; but the withdrawal could
not at time less embarrassing to the
banks and. heavy 5 it is likely to be. would
probably not any material advance in the
loaning rates for money. 1t might have the
effect of checking the gold export movement
begun last week; but that effect would be
simply incidental and not designed the Treas
urys calling in of funds being explained by the
fact Of the steadily increasing deficit and the
necessity of preparation for meeting obligations
soon to mature. Within the last week or so
/
term loans by railroads and other large cor
poratons To a considerable aggregate amount
1 rate a little above the quoted market figures
being paid, and it is probably owing to these
operations that time money rates are not now
even lower than they are.
The hardening tendency Of the foreign ex-
change market has recently made it probable
that gold would before long leave the United
states, and on Wednesday. the rise of demand
sterling to 4S7H and decline Of the Paris
checque on London to % francs 121k centfmes
having made possible the shipment of the metal
! TO Paris at profit on the basis Of the "tri-
angular operation" an engagement of 81 900 900
/ was announced, followed by that of a similar
amount on the next day. 1t is the common eX-
pectation that in the course of the movement
! S2O,OOO,OOO or more may be sent abroad the
ultimate destination Of most Of it being Ger
! many. The recent floating of the Sl6O 600 600
/ government loan in that country added "a th,4
! industrial difficulties. has been severe drain
and has probably also drawn much money from
! france, ana as gold goes where ii is needed, and
/ money rates are abnOrmaly low here and much
! higher in Paris and in Berlin il is entirely
natural that il should flow to those countries at
! this Juncture. 1t is going out. however simpJv
J as an exchange transaction, and not in pavnent
of obligations to Europe for the balance of trade
/ Is heavily in favor of the United States In
meeting the eXigencies arising from the October
/ panic the United States imported a little more
than $780, 900 gold. which it secured in nav
ment for commodities the expectation of which
was conducted on enormous scale. From
November to March. inclusive, the total excess
/ Of exports over imports was $4,000 900 and
allowing fer the payment of 500 900 in gold
the obligations of Europe this account must
still be very heavy.
The statement of the country's foreign com
merce i'm March issued on Tuesday. shows an in
crease OF about S1000O,O00 in merchandise i'm
ports over February and decrease of about
$26,0O0000 in exports largely due to the falling
+ off in the exports Of cOttor. noted last week
The imports. however. were $4,000. 900 less than
in March 1907. while the exports showed a
shrinkage of only 2O,000, 900, the excess of ex-
ports over imports being $522S3.74S, the largest
/ on record for March, and comparing with an ex-
cess for the same month last year Of $29.366 S65.
An explanation for the recent strength of the
local traction stocks other than that ascribing
! II 10 the benefits to be derived by the surface
nes through the restriction Of the transfer priv
ieGe, was given last week in the announcement
that J. r Morgan & Co. were negotiating for
the purchase of S2J,OOO,O0O notes of the Inter
borough Rapid Transit Company secured by A
larger amount Of the bonds authorized nv
the Public Service Commission. The Morgan
house has lately interested Itself in a similar
way in Brooklyn Rapid Transit and NAV in
future be rather closely identified with the
transit situation in New York City That the
Interborough IS issuing short term notes ratber
than attempting TO do any permanent financing,
at thIS ulne, Is IN me with the current view of