New-York tribune., 1909-07-05
MONEY AND BUSINESS.


acrumuIating evidence of Industrial expansion.
Quotations however are too high 60 attract
investment buying, while the chief speculative
holders show no inclination to Increase theIr
accounts; indeed on every advance there Is
enough quiet liquidation to suggest the theory
that intelligent traders converting paper
profits into cash. else transferring their IN
terest TO low priced industrial shares that APP
neal to many buyers owing to the marked inn
proveInent under way in our business AFFAIRS.
The general technical position of speculation Is
weak and 1t would not require much Of an ad-
vance in loan quotations the development of
some outside adverse factor to induce active
sales Of stocks that are being carried on bor-
rowed funds. especially the fancy priced rails
which are selling higher than their actual value
warrants. Confidence in our railroads IS re-
fected in the movement of investment money
into second grade mortgage issues but investors
while optimistic over the future, are not buying
railroad shares that yield per cent less.
The leading railroad stocks closed the week at
an average Of 1913. against 1863 in the pre-
ceding week, and the chief industrials at 93l4,
a gain Of pa.
Local banks are strong in cash resources with
the indications pointing toward further addi-
tions in the course Of the next few weeks.
though the interior currency movement from
now on will show n gradual reduction In the
amount Of money received at this centre.
Toward the end Of the current month the West
will begin TO draw upon New York in connection
with the preparations for the handling OF the
harvests. while from present indications the
movement will reach large proportions in the
late summer and early autumn, owing to the
bright outlook for abundant crops and to the
enormous amount Of currency the Vest and
South have sent to this centre in recent months.
the latter involving the prospect Of heavy with
draWals just as soon as the interior demands
become urgent. There was change in money
rates last week a consequence of the extern
sye July interest and dividend payments, esu-
mated at more than S215OO0O00 and no es-
peciaI inquiry for accommodation from Stock
Exchange or mercantile borrowers. Merchants
and corporations well supplied with funds
for current needs. but the chances are they Will
be factors Of Importance in the market later III
the year.
Gains IN bank cearngs, heavy railroad earn
ings in all parts Of the country, comparing most
favorably with years of great Industrial pros
perity, further activity in the iron and steel
trade promising reports from the Western farm
lands and a willingness on the part of capital
lists to engage in new commercial enterprises
are among the factors that encourage confidence
in the future Of the nations business. Labor
troubles in certain sections alarm.
they appear to be an incident Of returning
prosperity rather than an indication of unrest
among the workingmen of the country. Fail
ures for the first half of the year just ended
present decrease of IS per cent from the same
time in 1905 but an increase of 81 per cent as
compared with 1907, while the June business
mortality shows liabilities lighter than in any
preceding month this year and 40 per cent
smaller than in the corresponding period in
1905 and 1907 Railroad companies are increas-
ing their orders for rails and equipment the
demand for structural material is stronger
many mills of steel companies that have been
idle for months resuming operations and
the general iron and steel market appears to
have rallied firmly and permanently, including
the Southern iron industry, which has been slow
to feel the effect OF reviving industrial activity
Speculation in cotton futures is active at
higher prices the week closing with sensa-
tional rise as a consequence of the governments
report showing a material deterioration in con-
dition from May % to June % and percent
age of 746, against a ten-year average Of sos
for this time Of the year. Since June % there
has been Improvement in weather conditions in
the cotton belt and too much weight should not
be given to reported low percentages at this
early period of the season. bumper crop.
however, appears out OF the question, and as
visible supplies are short, while indications
point to an enormous world demand for cotton
in the next twelve months, consumers must ex-
pect to pay a good price for the product
throughout the cotton year. Spot markets are
higher, and the South is an active buyer OF fut-
u1es here. Increased firmness in the primary
cotton goods market broadened inquiry is
reported, and the mills are receiving heavier
orders for staples at present prices for delivery
beyond September. In the general drygoods
market orders more numerous The semi
annual clearance sales at this city have been
well attended by out-of-town merchants who
report favorable conditions throughout
the country and growing willingness on the part
OF consumers to increase supplies Business in
woollen goods is exceeding recent expectations.
Wheat prices firm, in spite Of better crop
reports, the light stocks of the grain on hand
and persistent advices of unfavorable situ-
alton in Argentina and Europe serving to OFF,
set influence on quotations the promise
of bountiful harvests in the United States.
Winter wheat conditions suggest larger yield
than was recently thought possible while spring
wheat and corn growth is all that could be de-
sired. Prices for flour show little change. and
buyers continue to exercise a hand -to-mouth
policy in the hope of cheaper levels. The trade
at some of the Northwestern and Southwestern
milling centres has improved slightly but the
export business is at a standstill. In general
business at the West seasonabe weather has
created a brisk demand in retail lines. Stocks
of merchandise are being reduced, and orders
for wholesale delivery for the autumn are
heavier than at this time last year, with every
sign pointing toward further improvement. The |
same thing may be said Of conditions at the |
Northwest. South and Southwest. There Is a
broader demand for merchandise in all parts of