New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-09-27
MONEY AND BUSINESS.

Stock market prices have developed an irregu-
lar tendency with the changes more in favor OF
lower levels than those recently reported. selling
apparently being due 20 a desire on The part or
substantial interests to reduce their holdings at
current attractive quotations and 20 belief
among the professional element that the long
period OF bull activity has reached its culrnina-
ton. Prices in the larger number Of issues
measure investment value. and much OF the i'm
provement in industrial conditions has been
overdiscounted by the rise in quotations. but in
some quarters Of the financial community the
opinion Is held. nevertheless. that before the
speculative pendulum has swung 20 the extreme
active railroad and Industrial stocks will be on
a level from 10 20 20 per cent above the current
range. There is little investment buying at
present. and the indication OF higher money
rates throughout the world has induced a spirit
OF caution in operations conducted upon Dor
Towed funds Tic rcalization OF profits on stocks
that have been ,-ri'i Tor many months IS be-
coming more OF . ..lctor IN the daily trading.
while there unmistakahlo signs OF a growing
opposition 70 bull demonstrations on the ex-
change. notably IN the case OF the fancy priced
railroad issues The leading rails ended the
week at an average OF 1S4.7S. against 1867 In
the preceding week. and the chief industrials at
104.0S a gain OF ~.
Local money rates firm. with general In
dications pointing 20 higher levels in the course
OF the next few weeks. while similar conditions
are developing abroad. a reflection OF the latter
being found in an advance by the Imperial Bank
of Germany OF its discount figure from ga 20
per cent and in growing demand at London
for gold for Continental and Egyptian account.
The average reserve Of the New York Clearing
House banks stands al S9,S77. 425. against $50
039,5J0 at this time a year ago. and S5.646. 5I5
in 1907. and from the present movement OF do
mestic exchange il is quite evident that cash
holdings against deposits will soon be carried
under the legal limit. unless deposits should he
materially reduced by the liquidation Of loans
The banks hold less cash than they held at this
time last year. despite the large movement Of
currency 20 this centre since that period while
they are now confronted with increasing de-
mands from the South and West in connection
with the marketing of the crops and the needs
OF trade expansion Foreign commerce condi-
lions show a debit balance against the United
States. while on direct loan account this conn
try owes Europe more than S5OOOO0O0O and
though later In the season commodity exports
may create enough exchange 20 bring in some
gold. If local requirements demand II, the i'm
mediate outlook for imports OF the metal is ex-
tremely unpromislng. Commercial paper Is
offered in increased volume as a consequence 90
the growing needs of merchants
In the general business situation conditions
continue TO reflect conservative Improvement
with Special gains in the iron and steel trade
I'm which the output is practically on the basis
Of normal times. The only uncertain factors
are found in the position OF the cotton crop and
In the possibility of damage TO corn by early
frosts. which already have appeared in certain
parts OF the corn belt. Bank clearings last week
at all the leading cities were q per cent bet
ter than year ago and 16 per cent larger than
in the COFFPSDOndncr ina in
road earnings for the first two weeks OF SEN
TENDER showed gain of 10 per cent over 1905
and per cent over 1907. Commercial failures
are decreasing from the totals of this time a
year ago. last weeks record showing q decline
In the number OF about 30 per cent High prices
OF raw products tend to check 10 some extant
trading In drygoods. but seasonable activity ia
reported. especially in the primary market An
tumn retail trade is developing in a satisfactory
manner and gains are being made at many
cities over the active period of 1906 in spite Of
the abnormal price for cotton and wool. There
mas been some interruption TO business ar the
south because Of the severe storm along the
Sulf but from all other sections trade advices
are uniformly favorable
iron and steel trade conditions are far NOR. sat
isiactory than was thought possible a few n,ontba
ago Inc president of the United States Steel
Corporation. which handles 60 ner cent ~ The
steel business In this country. is authority for
the statement that We are now in The midst
OF the greatest development in the history\ Of
the INDUSTRY" Practically all the plants of the
Dig corporation are running on full time. and il
Is oeneVed that NEXT year will witness record
, pteanHs production with the railroads the
heaviest buyers Mill orders are so heavv that
shipments have almost reached the record A.
urss established in 1907. while premiums ara
neins paid for prompt delivery OF nnishas ma
teriala Pig iron and coke show further strength
ana the only indication of ideness is found az