New-York tribune., 1909-10-18

ments upon borrowed money. total lack OF
permanent Investment demand is reported ana
1t Is not likely that buying from this source VIII
develop until prices have reacted 20 lower
level or money declines to a cheaper range Al
the moment capital is being invested In Ioshs
which return good profits rather than in bonos'
activity in mortgage issues representing little
beyond speculative trading, The leading rah-
road shares closed the week at an average of
134O5. against 1SS45 in the preceding week. ana
the chief industrials al 1882. R gain Of 81
Money rates are firm. with the chances favor
ing higher quotations before the end OF NO
venlber, though spectators convince themselves
that stiff quotations are over for the season
owing to the increased offerings of call funds IN
the local market last week and the ldea ulaI
the banks will take out emergency currency
notes in the near future. There is no good rea-
son TO believe that the banks intend TO do any
thing of the sort No currency association mas
been formed at this centre and no situation ex-
lists in the business world that demands an IN
crease in national bank note circulation as pro-
vided for in the amendment or 1908 10 the ha-
tional bank law. The Aldrich emergency cur
rency measure was not framed and passed for
the purpose OF promoting speculation An aa-
vance last week in tho Bank Of Englanas MINI
mum rate Of discounHemphasizes the tendency
Of the money markets Of the world toward a
higher level. and the action OF the governors ol
the British institution should serve to dlscrediI
the theory that there is enough available eapltaI
to care for heavy speculation in the STOCK anu
commodity markets at a time or increasing
needs Of growing Industrial activity. Discounts
at all European centres are higher SterNng
exchange here has responded more to the adj
vance in discounts abroad than 10 the course OF
money at New York. the general movement OF
the exchange market giving little encourage
naent to the expectation held in some quarters
that the United States will be able to import
gold this autumn in spite of marked improve
ment in grain and cotton exports
Higher rates for money reflect the widening
mercantile activity throughout the country anu
the demand for funds incident to the narketlhS
of the crops. Reports from industrial cehtfes
show an increasing volume of general trade
which is indicated by larger bank clearngs and
expanding railroad earnings, payments through
clearing houses last week presenting gain OF
21 per cent over the corresponding time in 1905
and railroad earnings for the first week IN
October a gain of IS per cent and for the month
of September gain of ~ per cent. The colder
weather has helped retail trade at the West and
Northwest, while lower temperatures and the
free marketing of cotton have aided dlstr'puuoh
in the South. The general jobbing trade shows
marked Improvement. Better buying for spring
Is reported in most lines, though the cotton
goods industry is somewhat unsettled, owing 70
high costs for the raw material and the possi-
biIitv Of curtailment In many quarters it is
believed that unless cotton declines or buyers
are willing to buy goods on a l4-cent basis
certain number of our mills will be compelled to
close. the chances, however. apparently favOring
higher quotations for goods rathertthan re-
adjustment OF prices for cotton 20 a lower level
In most departments Of the drygoods market
business shows an encouraging gain whole
salers reporting a steady buying movement
Production OF steel making irons continues at
a record rate Demand from consumers con-
tinues active and large tonnages Of Bessemer
and basic are being placed. More activity Is
recorded In foundry grades, with noteworthy
Improvement in the demand from small con-
sumers, while in finished lines orders are run
ming ahead of recent expectations, especially for
the account of the railroads and for the build
ing trade Car building plants now experience
difficulty in K 81 M with orders for new
rolling stock. anu rail mills are working TO
practically their full capacity. sales OF last
week amounting to more than 100000 tons Cast
iron pipe interests are making heavy demands
for low grade iron. the scarcity OF which has
encouraged inquiries for American account in
the British market accompanied by an active
demand in the German market for steel billets
for domestic consumers. Prices for coke are
high. but the market is less active than it has
recently been. Though copper is easier in price.
producers are looking for early Improvement in
the metal the accumulation OF stocks failing
shake confidence in the ultimate outcome OF the
industry
Bradstreets approximate index number for
commodities on October l was higher than was
ever recorded on that date, with the exception of
that time in 1907, and OF 10l staples IS
clined. buoyancy being pronounced in cotton
and wheat. Speculation in cotton futures is ac-
tive on rising prices. killing frosts in many of
the Southern States, an increased domestic de-
1nand and larger exports helping the campaign
for better quotations. The spot market is
strong Enlarged shipments OF cotton in Sep
tember more than offset the decline in the out
ward movement OF breadstufs. but IL is encour-
aging to note that since October / there has
been a steady gain in the exports OF grain
Wheat is advancing in the face of big receipts
the bull element in the market finding the ac-
tive demand from n2illers strong argument for
rising quotations. while the hrnlness in the cash
situation, activity in -four and higher European
prices have combined in favor of the advocates
Of rising values In the local flour market bust
ness is quiet but at Western and Northwestern
points heavy volume Of trade is reported
Corn is active with the tendency of prices for
December delivery in the direction of a lower
level.
-~-------Hz-HH~--~--===z-
1t is impossible to avoid the suspicion that