New-York tribune., 1909-12-13

siderable amount of capital is moving
into irrigation schemes and preferred in
dustrial issues suggests to many minds
the proba bility OF greater activity i'm the
months To come i'm investments other
than railroad shares and mortgage is
sues. Congress shows no signs of break
ing out with antagonistic legislation. and
the conservative recommendations in the
Presidents message encourage optimism
in financial quarters.
Money rates are at a level that at
tracts interior funds to this centre. and
current indications point TO an active
movement of currency TO New York in
tho first months of the new year. Local
bank reserves arc not large. hut they are
sufficient for present requirements for
speculative and mercantile purposes,
though borrowers are compelled to pay
good prices for accommodation. which.
iR the case of commercial paper. arc too
high To attract the best grade OF offer
ingS. particularly as time money for
long periods may be secured at lower
figures. Railroads and other corpora
tions arc i'm the market for new capital,
and their growing needs should he borne
Ia mind in figuring on the future Of
money. Tho reduction by the Bank Of
England i'm it's minimum rate of discount
is an important development for the
financial markets. as II presents official
intimation that recent adverse condi-
tions are passing away; but so far the
action Of the governors of the British in
stitution has had only a sentimental in
fuence upon local foreign exchange.
which remains at wholly abnormal
level for this time of the year.
Prices for most commodities continue
TO move upward. and the high cost of
living, while satisfactory to the pro-
ducer, is bearing heavily upon the ordi-
nary public. and promises 10 cause fur
ther uneasiness among the large employ
ers OF labor. Demands for higher wages
are based upon the increase in the
cost of living. And if the railroads and
industrial corporations advance their
payrolls at a time OF rising prices for
materials the operation will be at the.
expense of profits. The commodity price
situation supplies the only important un-
certain factor in the industrial outlook.
Bradstreet's figures out an index num-
ber showing on December 1 a price level
of 50 l22s-that is. a person purchasing
a pound each of ninety-sX articles would
have to pay 81 125s. which compares
with IS II last March and So 20 year
ago. At the low level OF prices in 1908
the same goods could have been pur-
chased for 81 10 under the present point.
General conditions in the business world
encourage Ahe expectation of an in
creased output by manufacturing con-
Germs and activity for a long time TO
come I'm all lines. with only a seasonable
relaxation at the end of the year. indi-
cations of the latter now appearing in
many markets.
The drygoods market as a whole is
somewhat less active than IL has recent
ly been. uncertainty over the raw mate
rial outlook serving to restrain forward
operations. The Census Bureaus figures
OF cotton ginned to December show
SS1SooO bales, against IL .0oS.O 600 bales
at the corresponding time a year ago.
and the fact that the crop has been
picked. ginned and marketed more rap
impression in bull quarters of the cotton
market that this years total yield will
not exceed the governments estimate of
l0.0sS. 900 bales. Speculation in cotton
futures is active. and prices continue 10
rule at advanced levels. the May and
July option selling last week at the
highest points since the Sully campaign
Same haIiaya bat
many spindles will cease operations for
lack of cotton before the new crop is
available. Government figures showing
the condition OF winter wheat on Decem-
Der I leave little to be desired from the
future buyers point of view. 4 condi-
tion percentage of 9J.S is one Of the best
on record. The effect of high prices for
wheat i'm the last year is reflected in
the increased acreage planted to winter
wheat. the area covered amounting TO
Is, ,4S;i, 600 acres. against an average for
the four preceding years of 30,9S9. 600
acres. or an increase OF s per cent
No falling off in the demand for fin
ished steel is reported. but in the pig
iron market the inquiry for foundry
grades in tho Eastern and Northern dis
tricts is lighter. with little prospect of
Improvement until after the first of the
year. AS a result Of the heavy deliv-
cries in the current quarter most con-
sumers have big stocks on hand and i'm
transit. Prices, however, remain strong,
with the exception of concessions in the
South. where stocks have accumulated
in the furnace yards Copper is frmer
and tho market shows returning conf
dence. with the expectation i'm conserva-
tive quarters Of decided Improvement in
January. Stocks on hand have decreased
and it is believed that copper statistics
at the first OF the year will show that
there has been only a slight increase i'm
the amount OF the metal held by pro-
ducers as compared with the same time
in 1909.
II is To be hoped that the Board of