New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-30
MONEY AND BUSINESS.

viduals The decline started before Mr.. Harri-
man returned to this country and while the an
nouncement upon his arrival last week that
there would be segregation of Union Pacihcs
assets and no increased dividend distributions
at present served to encourage operations for
the decline. the situation in the street rather
than outside influences responsible for a
iquidating movement of vast proportions. The
market was ripe for decline. and the Harri-
man factor merely helped to intensity the spec
ulative collapse. The outlook for investment
purchases has been strengthened by the slump
in prices and II is quite likely that in the event
of further readjustment of quotations to a
lower level active home and foreign demand
will develop for American securities. the in
trinsic value of which is steadily improving.
Conditions In Wall Street have been signalling
speculative disaster but in the business world
all signs point 10 conservative prosperity. The
leading railroad shares showed average price
at the close of the week OF 131. against 13S. the
high of the preceding week. and the chief in
dustrials average of 90. loss of points.
Out-of-town money movements with the local
banks and the course Of domestic exchange
rates reflect a growing demand at Western and
Southern centres for funds while loan quota
tons here foreshadow gradual increase In the
mercantile inquiry for accommodation. That
the interior already is something of a factor In
York banks TO the sub-Treasury Of a consd-
erable amount OF money. due I'm great part to
payments the 3 per cent redemption fund
for the account OF institutions in other cities.
Country banks at this period OF the year con-
serve their resources on hand and draw on their
Eastern balances instead of shipping lawful
money themselves 10 Washington. The usual
reports regarding the ability OF the interior 10
finance autumn harvest and business demands
without calling upon New York are heard. but.
according 10 the best informed bankers at the
West, Withdrawals from this centre viii be
usually heavy The inquiry is not yet active.
and the outlook does not favor immediate
advance in lending rates. which continue TO rule
at the frmer levels established two weeks ago.
In the commercial paper market a large amount
OF rediscounting is reported for Southern banks
and an increase i'm direct loans 20 merchants
and manufacturers.
Bank clearngs and railroad earnings confirm
reports received from all parts OF the country OF
large fall purchases IN ali lines OF business. OF
growing demand for prompt shipment and OF a
general expansion in the output I'm most depart
ments OF the country's industries. For the last
week clearlngs at all cities increased so per
cent as compared with the same time year
ago. while the returns of railroad earnings for
the first three weeks in August showed a gain
OF more than 10 per- ceTft and decrease of only
! per cent from 1907 Commercial tendencies
are In the direction OF Improvement. with move
ments in general trade being stimulated by the
beginning OF the cotton harvest at the South and
by the winding Zip OF the spring wheat harvest
in the Northwest The jobbing trade is active.
Cautious buying however. is reported in whole
sale and jobbing lines of drygoods. in which
buyers appear 10 cling to the hope OF lower
prices. though conditions governing the market
cessions. II any. In cotton goods advances have
been made. but current quotations are not high
in view of the price of the raw product. Export
markets are still inactive. Cotton mills in this
country a rule well sold UP for the pres
ent month and September. while many OF the
Fail River mills sold up to october 1 and
about 40 per cent for that month.
Reports from the iron and steel trade show
that while the production of the furnaces and
mills is tremendous. the larger number OF COM
panes find II difficult to make deliveries salts
factory TO consumers. Pig iron in the East has
been advanced. The market continues to
broaden and sales in large lots COM
mon than they a few weeks ago. with
foundry interests the heaviest buyers. The
electrical and locomotive companies also are lib
eral buyers. Southern furnaces have a large
tonnage booked ahead and are not inclined to
make prices for distant deliveries. Orders for
steel rails and general equipment are becoming
more of factor in the steel market. while speci-
icatons for finished materials in general are
exceedingly heavy. The iron and steel industry
is practically back TO the basis OF the prosper
Gus times preceding the panic OF 1907. with every
current indication pointing TO long period of
record breaking activity. Coal Is in better de-
mand also coke. in which marked revival is
under way. In the copper market producers are
confident Of higher prices and show no eager
ness to sell at prevailing figures
Speculation in cotton futures is light at the
moment generally rising prices. Trade and
weather reports have been along bull lines and
spectators counting upon an adverse show
ing i'm the government figures which will be
available on September 2. Stocks are steadily
decreasing and visible supplies are smaller than
they were two years ago. when the crop did not
exceed 11,500.o00 bales. record that some be-
lieve will not be reached this year. Prices of
fabrics have advanced enough to enable manu-
facturers TO book contracts on the basis OF the
present price of raw cotton which injects an
element OF dehniteness into the situation re-
garding the spinners' demand in the coming
cotton year. Wheat is lower and flour has de-
clined in sympathy. Highly favorable harvest
ing returns are reported In the Northwest and
neapolis. where cash prices are down from IN
to rs cents bushel Winter wheat also is lower.
while corn likewise is being readjusted To tba
new crop basis. General crop conditions con-
tinue to favor year of large yields
=----
Count Zeppelin still finds IN peces.ar,. A.. -,