New-York tribune., 1908-05-18
MONEY AND BUSINESS.

Occasional reactions in the security market
go lust far enough to develop short account
Of modest dimensions whereupon manipulation
is resumed and stocks lifted to new h1gh
records for the year There is sufficient interest
by the public to facilitate these operations, the
short selling being by professional traders WHO
gain confidence the rise becomes more exten-
sive Outsiders more interested in the BOND
market where sales are far surprising those OF
1907 but there Is also substantial PUBIC de-
mand for stocks that helps to provide daily
transactions much larger than those of year
ago although the total for 1908 thus far is only
two thirds as large in 1907 to date. Prices
now average about SIS share higher than at
the low point last November, and cautious trad
ers are asking whether this does not fully dis
count any recovery in general business that car
reasonably be anticipated Moreover, earnings
for May thus far make the worst exhibit Of the
year so that the upward movement OF prices
must be attributed wholly to expectations re-
garding the future which at the best is mat
ter of great uncertainty. That this fact fs fully
appreciated by floor traders is shown by the
readiness with which they change position. to
which is due much Of the increased volume of
business
Money is so abundant that increased borrow
ing in speculative channels, offerings of new
bond issues Treasury Withdrawals and gold ex
ports all fail to harden rates even small frac-
ton. Europe has resumed Its drain on our
gold supply, raising the total for the movement
to about s22000.000, and some has also gone to
Canada. Although 1t was generally believed
that Germany the ultimate destination of
much gold recently exported, to-morroWs
steamer will take the first definite consignment
to Berlin. This is a natural movement,
rates are much higher in the German market
than elsewhere Thus far the outgo of gold
has not exercised the usual depressing effect
foreign exchange rates and the scarcity Of
grain and cotton bills tends to sustain quota
.tions at point that facilitates further exports
of specie. Treasury finances continue TO run be-
hind. and even the large reduction in bank de-
posits has not maintained more than a fair
balance in government vaults. Call money on
Stock Exchange collateral has not been quoted
above per cent for many weeks and transac-
tions frequently made at II per cent while
some of the best grade commercial pa per has
sold at 31s per cent, although the bulk of bor-
rowing in mercantile channels is done at to
AZ per cent.
Sections that have enjoyed seasonable weather
report a larger distribution of lightweight wear
ing apparel, and at points there is good
demand for household utensils and staples but
retail trade Is extremely irregular Wholesale
and jobbing lines receive orders from
country districts where crop conditions are
above the average, and several special sales at
tract unexpected numbers of buyers Bank ex-
changes make - better comparisons with last
years figures than in any previous month this
year. but part Of the Improvement must be at
trbuted to increased speculative activity Re
ports of immigration continue to show that the
labor market does not attract foreigners 100 600
fewer aliens coming in April than In the CORE
SpOnding month he
shown in March and a worse exhibit is
promised for the current month"; because May
1907, established high record of 1S3 $50 inmi-
grants. Foreign commerce in April was re-
markable for the decrease in value of nerchan-
disc imported the loss in comparison with the
same month last year amounting to s42 900 OO0
or about 33 per cent. Exports were the small
est since last August, but fell only $4,000 900
behind April. 1907, that the international
trade balance in favor of the United States was
s1sO0O,0Oo larger than a year ago. Including
net exports of specie the balance on all accounts
more than $50, 200, against SEA 600 600 in
the same month last year
Wheat resumed its downward tendency after
the slight rally on the government report specu-
lative support being withdrawn from the option
market, while the cash situation encountered the
drawback of smaller flour production at domestic
mills and light shipments abroad. Argentina
exported more freely than was expected, which
depressed quotations at Liverpool. The only
support came from the Southwest where in
sects have become little more prevalent, but
abundant rain has facilitated growth. Corn
planting is late because of excessive moisture
In states and low temperatures at other
points, making this grain relatively much
stronger than wheat and oats also received bet
ter support than the leading cereal Cotton
supplied another week of sensations, the July
option rising violently until 1t sold at a premium
OF SO so a bale over October deliveries, and spot
middlng uplands within $3 rs of the price
a year ago, despite vigorous advance in the
corresponding week of 1907. Exports continued
10 decrease, however. and the announcement of
short time at Manchester mills caused a re-
action. The leading operator took profits freely
and last week closed much below the best po-
sition- While there has been too much rain at
some Southwestern points. the acreage that will
bs rsplAntsd does not thrsatsn to Attain tho