New-York tribune., 1908-07-27
MONEY AND BUSINESS.

backs and the general pubic iS eAhioi1iie
interest This is especially true OF lhteiioi
husiness wire orders from Chicago supplying
,,roh activity Sales of stocks were larger tnan
in tho same week last year. and the gain III
hond business was over 800 per cent. Rali~
wav shares averaged higher than at any pre-
yious time this year, but were still ABOUT O.
lower than at the corresponding oa'e III H0oi'
The largest advance in any single security was
.h r.n.a+tonaI movement of Standard Oil, al
though the reversal of the big fine was not un-
expected. BY Friday prices were ready iol
reaction many traders taking profits Freely anu
the announcement that new trial would prob
ably again find the defendant guilty was useu
as an excuse for falling quotations AS mat
fer of fact the market was overbought, ana d
moderate setback was inevitable 1t is neheVeo
that on second hearing a much smaller hne
will he imposed and paid without contest re-
moving this element as influence On the mar
ket value of securities Railway earnings are
making better exhibits. and In a rev weeks crop
moving demands will further reduce the NUM-
Der of idle freight Even after the reac-
tion prices of railway shares are ABOUT as hish
as were recorded in May. and the general stu
alton seems to warrant better quotations thah
prevailed last spring.
With surplus reserves of the associated panhs
far above all records for the season, excepting
rates will rule easy and the approach OF the
usual autumn drain be regarded with equanlm-
,tv nv local bankers Yet there is a slight ten
dencv to ask higher rates on accommodation
extending for long terms, partly due TO the
many indications that business will call Tor
more money in the near future, and speculative
interest is also broadening On call loans' now
ever the plethora Of funds brought rates down
to per cent Exports of gold to Europe ceased
to be a factor when rates of exchange turned
sharply downward. The chief reasons Tor de-
cIfning quotations were offerings against 1or-
eien hond subscriptions and the usual season.
able drawing of commercial bills IN antlcipa-
ton of grain and cotton exports Despite the.
high position of quotations, it fs conhdently
exnected that there will be the customary fall
shipments of wheat while cotton is at much
more attractive price level than year ago.
Treasury operations show a deficit for the
month thus far about S10,O00OO larger than
for the same time last year, which partly offsets
the heavy reduction in government deposits in
national banks which down to S116!OOo,oOo.
The tendency to move cash to the interior is
shown .,y shifting rates of domestic exchange.
but there is much difference Of opinion regard
ing the extent of the movement this season
Much encoura cement is to be found in last
weeks statistics of bank exchanges. The fig
,res at New York were moderately in excess of
clearings in the same week last year, and even
after making a fair allowance for the greater
speculative activity there was only a small loss.
At other leading cities which represent COM
mercial transactions more faithfully the de-
crease was only about Z per cent, as compared
with 1907 and several centres recorded small
gains 1t is gratifying to find normal con-
ditions restored this extent, especially in the
midsummer season, when recovery could hardly
of a broader distribution of merchandise, each
week of favorable progress on the farms strength
ening confidence and stimulating preparations
for future business. 1t is easy to find signs of
optimism in the attitude of buyers after the long
period of stagnation. but it would be mistake
to underestimate the elements that still counsel
conservatism The recent setback was due to
excesses that Will not be duplicated in haste,
and il is not to be expected desired that ac-
tivities will rise to the level of the first half of
1907 for some time come. But the nation is
steadily recovering from the panic of last Oc-
tober. and the closing weeks of the year will
witness larger strides forward when the ex-
pected election Of Mr.. Taft becomes a reality.
Already the industrial plants are taking hold in
a manner that shows there is faith in an in
creased number of contracts. Less idle
chnery means larger payrolls, and while some
reductions in wages have been necessitated in
the course of readjustment. scarcely any I'M
portant strikes have occurred, which is greatly
to the credit of labor leaders.
Cotton has declined to the lowest price for
this time In any year since 1902, which is most
satisfactory condition for all except the specula-
tive holders of options purchased at higher fig
ures The steady decline indicates confidence in
a large crop, assuring liberal exports and en-
coura ging the resumption of domestic mills yet
the price still offers q substantial profit to pro-
ducers The further fall last week was Wig
orously resisted by Wall Street spectators but
the good news from plantations proved irresst-
ibe Receipts at the ports testify to early
marketing of the crop and Northern spinners
also purchase more freely. but visible stocks of
old cotton 100000 bales less than year ago
which would be factor of weight If the new
crop were backward. Grain markets are stub
bornly strong, the chief movement last week oc-
curing in oats Speculation especially ac-
tive in the July option. which rose sharply as
contract stocks at Chicago became depleted and
crop reports from several leading states told of
irregular progress. There is practically no outgo
of oats or corn, present crop prices being pro-
hbitive TO foreign consumers. Wheat moves
fairly well, however. European buyers taking
offerings at the seabOard at more than 81 q
bushel because of unsatisfactory reports from
wheat crop is favorable the whole although
some statements of Injury received from
the Northwest Canada is raising good crop
M L. a.,