New-York tribune., 1909-04-05
MONEY AND BUSINESS.


the close the average quotation for the leading
issues made a new record for the year at 10
for the leading railroad shares. against 1Zu.9o
the best preceding high point. CT Ja''larF = and
>G37 for the chief Industrisls, as compared Win
81 - il the first week OF the year. The move
rrent was accompanied by an Increase II trans
actions for public account. outsiders showing d
decided disposition to follow the lead OF suo-
Srantfa speculative interests that exercised the
usual rnanipulattve tactics to attract conlrIlis
sion house demand irrespective Of the fact that
values had already discounted expected favor
abIe changes in the current Of business afIalrs
s., Ibis rcrntry stocks. however. were TOO hgh
. n frdr,re active investment buying. the tradlng
-a2-esen1ing little beyond marginal purchases
AZ a level at which wise men began 10 unload
holdings accumulated at lower figures Capital
j., <sir volume is moving into railway mortgage
issues for permanent income Weld. and. IN Vie"
of the ease in money. operations OF this ehaF-
s~+e- doubtless will continue for some time 10
come. The average for the prominent rsllroaos
a. the end Of the week was 121S- against 1l9- %
the week before and for the ipdustrials s5-to'
gain Of 1-09
Hf,re,- market conditions suggest no immedi-
arc change in ruling rates for loans. as there
are no indications Of any extraordinary de-
mands for accommodation in the course OF the
next few months. The supply Of call money IS
abundant enough to meet all requirements from
stock Exchange sources. while notwithstanding
the expansion in business in securities. no In
crea 50 is reported in the inquiry for time iunds'
nor is the volume Of mercantile transactions
large enough TO cause hardening tendency in
commercial paper, which continues in light sup
vrv at this point At the West some activity is
reported in the money market on account of
mercantile borrowing. but the home banks have
ample supplies on hand to meet local needs
without Withdrawing their balances from New
York Currency continues to move 10 this
centre in excess OF shipments, gold exports to
London have ceased, and federal Treasury dis
bursements are larger than receipts. though the
latter are increasing. Discounts abroad are
lower due to the Balkan settlement. and the
foreign exchanges. both here and in Europe, are
weaker. the decline at Paris on London sug-
gesting the possibility OF imports Of gold at the
French capital involving. perhaps. future ship
ments from New. York on the so-cailed tri-
angular operation
Analysis Of commercial failures for the first
quarter Of the year furnishes adequate reason
for encouragement over the condition Of the
cOuntry's general business. A decrease Of 20 per
cent In the number Of failures from the same
period a year ago was accompanied by re-
duction in liabilities OF 81 per cent, and while
the exhibit was less favorable in comparison
with the same time in many preceding years. It
reflected. nevertheless. increasing strength in
our Industrial affairs. which in the remainder of
the fiscal year are expected to show moderate
but steady Improvement. Though general trade
is moving on a basis under the normal. railroad
earnings and bank cearngs supply additional
evidence that our industries are not inactive
Both gross and net returns show marked gains
from this time in 1908 and railroad officers are
confident enough over the future to increase ex-
rF--f- from,
ceipts which are particularly heavy in the
West Industrial activity IN certain sections OF
the West is pronounced in comparison with the
volume OF business in the East the wealth OF
the farmers consequence Of years OF good
crops being an important factor in increasing
the buying power at interior centres. An active
demand for agricultural implements is reported
Independent steel companies are receiving few
orders and the United States Steel Corporation
IS operating II is estimated, between IS per cent
and So per cent Of its capacity on a basis OF
prices that mean extremely lean earnings in the
current quarter Merchant blast furnaces that
furnish iron To independent mills apparently will
be compelled 10 curtau production 70 a large
extent. and TIE underwriting in prices by the
United States steel Corporation is placing the
Independents in a sorry plight far divi-
dends are concerned In structural steel. Tin
plates and sheets some Improvement IS reported
but the increase in the output OF tin plate has
been Offset by the reduction in the production OF
wire products Many trade interests believe
that the rapidty with which events have moved
in the steel trade since the announcement OF
price cutting indicates that the market VIII soon
reach bottom. with the speedy establishment
thereafter OF q stable and profitable basis In
the q goods market business in the aggregate
is of moderate proportions the current quieJness
in the Eastern trade possessing none OF the
earmarks of perInanency.. As a whole. the sit
uation is healthy and the outlook promising
especially in the West where in the last week
more orders were received and more buyers wer=
in the market than in the corresponding week
last year No overproduction IS reported.
Primary markets for cotton goods are rela-
lively inactive Jobbers show disposition 70
reduce stocks before replenishing. while in the
secondary market for cottons Il most irregular
demand is reported. Speculation in cotton futures
is more active than It had recently been. and
prices are higher. With strength also In the spot
markets Western grain speculators who have
made money in their lines buying cot
ton in the belief that the price Is too low and
that Texas weather conditions are menacing
High quotations for wheat are reflected in d
firrner level for -four. but buying is light in
volume Visible supplies Of wheat are said to
be unusually low and the fact that the worlds
requirements in the next three months are esti-
mated at 500. 600 900 bushels strengthens the be-
lief in bull circles that quotations will continue
to rule at high figures Exports from this coun-
try continue light. total shipments OF wheat and
corn last week being smaller than in any pre-
ceding week since that Of October 5. 1905 The
shoe and leather trades quiet but for the
first quarter Of the year Eastern shipments Of
shoes show an increase Of % per cent ove~ the