New-York tribune., 1908-07-13
MONEY AND BUSINESS.

the security market last week than It had done
| in the week preceding, there was much greater
activity by the professional element, and prices
| steadily rose until expectations were confirmed
| at Denver. Then, as is customary In such d
case. prices declined under profit taking sales.
| But the week closed with the average or the
sixty most active railway shares within about SS
! of the position year ago, which Is not dis
| couraging comparison by any means. Several
incidents contributed to the better feeling. nota-
bly, a smaller decrease in railway earnings dur
| ing June than appeared in preliminary state
ments; a further reduction Of 36,72O In the num-
| Der of idle freight cars making total decrease
| of 100000 since April 49, numerous interviews
with eminent men. IN which the outlook IS made
most encoura ging; favorable crop reports, ana
declaration of the usual dividend Baltimore
&, Ohio stock There some criticism OF
that action. as smaller earnings seemed to war
rant a reduction In the sum distributed, yet the
report showed an ample surplus, and mainte-
nance of a 8 per cent rate was another evidence
of confidence that the next report would sho"
larger earnings.
Financial conditions continue easy, and there
is no prospect of any material alteration In the
situation for at least another month About the
middle of August a large of money Will be
needed to move the crops, but liberal reserves
at interior banks may avert any severe drain on
local institutions. Meanwhile the withdrawal OF
government deposits is no hardship, and If drafts
are made against the large balances of interior
correspondents in redemption of banknotes New
York banks will gladly surrender funds upon
which they paying per cent interest and
frequently earning less. Losses of this nature
are often necessary during periods of low rates
in order to retain the accounts when returns are
more profitable, that local bankers Will not
discourage any Withdrawals at the present time,
either for the return of Treasury deposits or
redemption of banknotes which have accumu-
lated at Washington because Of the inadequate
clerical force A transfer of many employees
from other departments last week will expedite
this operation The opening days of July have
brought a large deficit ct the Treasury, but ex-
penditures usually exceed receipts at this sea-
son, although not to the extent noticed at pres
ent Receipts are considerably smaller than they
were in July thus far last year, while disburse-
ments are larger than in 1907.
Not only is the actual volume of general bust- I
ness steadily gaining, but sentiment is improV-
ing even more rapidly, and most cities report /
collections unusually prompt for the season |
Removal of political uncertainty is particularly /
helpful, and many persons believe that the (
outcome of the conventions leaves little room
for doubt regarding the result in November
This feeling of confidence will bring out much T
postponed business the tendency being evident /
in many directions now and the next few |
weeks will produce orders from sections .
that are wholly dependent upon the crops In .
this respect the outlook was never better, but /
much injury may vet occur which tends to pre-
vent a dangerous excess of optimism. More |
good June reports have appeared. including the
statement of building permits issued during that
month. It shows a smaller decrease in COM
parison with the same month last year than
any previous month of 1908. and it must be re-
membered that June 1907. was a phenomenal
month in that respect. Preliminary figures of
exports in June show the value of farm products
sent abroad to be only about $4,OOO,0o0 less
than in the same month last year, gains in cot
ton and petroleum offsetting most of the de-
crease in value of grain and meat exported.
Good news from the farms has less effect on
prices than might be expected largely because
of small available stocks of old crops and
vigorous speculative manipulation. Cotton de-
cned twenty points further, which about
the same as the fall IN the corresponding week
last year, leaving the present level SO lower
than at this date in 1907. No Improvement is
noted in the spinning situation abroad, and
domestic mills still curtan operations pending
the appearance of more contracts. Exports for
the week were about the same year ago.
and in June there gain of more than 3d.
100000 in value, despite much lower average
last week were twenty thousand bales larger
than in the same week last year, or about the
same as the increase in the quantity coming
into sight. Grain markets are stubbornly firm
in the face of crop reports far above the aver
age the only drawback in the government re-
port of condition on July l being the loss of
several points in the spring wheat figures. As
an offset in the making of prices there were
exceptionally brilliant reports from Canada,
but small stocks and a notable decrease in
receipts maintained quotations close TO the
dollar mark" Corn held firm, despite indica-
tions Of yield exceeding 2.I00O00OOO bushels,
but oats weakened estimates of a record
breaking crop.
More Industrial plants have resumed, although
reports from the leading branches of business
are somewhat irregular. orders coming to
the mills and factories in greater number yet
there is still much caution regarding the aGcu-
mutation of stocks, and at distributing centres
the big operators usually urge conservatism.
This is largely in self-defence, the heavy
mortality of the last eight months
tends to make the seller careful. even when
collections are improving and confidence is in
creasing Prices Of most manufactured prod
nets are firmly maintained, and an advance is
bv glass producers. Footwear is
steady orders coming to some New England
shops for more fall shoes than can be made in
season for shipment directed. This difficulty
was expected. but producers waited for orders,
fearing to accumulate stocks Of footwear made
from leather at the high prices recently prs~
vailing Hides have advanced still further.
Raw wool sells freely, although lines Of
woollens have not attracted much attention.
The pig iron output is increasing, and in a few