New-York tribune., 1909-06-07

val
dtions in the general situation and that Iur
on,racia+ion vouId tend to encourage specuia-
tive dernoraIization The best feature OF tho
c,rrent market Is the active investment inquiry
for railway mortgage issues both on Ihe 0'O
Exchange and over the counter LeauiIs So
ua,, shares now show an average price OF 100
against 1861 a week ago, and the prolliille
industrials an average of 94.5O, gain Oh 90
Money rates, while easy. exhibit shsh'S
frmer tendency as a consequence OF lAe No.
demand in connection with stock specuialon'
e,d there is some reason to believe that for the
rest of the fiscal year loans will rule at oet'el
figures Receipts of currency from the lhtelloi
are lighter IN volume than have Deeh Ie0e'i'
reported. The inquiry for time funds sho"S III
provement, offerings OF commerclal paPei "
larger as a result of expanding mercah'io op-
erations and transactions in call money proiiiSe
10 bring about stiffer quotations. though hsh
rates are not looked for unless specuia'oii
should continue Indefinitely along present INES
ueavv dealings in securities in the London mar
ket are responsible for dearer money at tiie
British capital, and it is conceivable tna' uiiu'
existing conditions in local foreign exchanBe
gold will be transferred from New YORK 10 hoh-
don sterling rates ruling at ABOUT 'ne
highest level Of the year. Offerings In the week
of sterling and franc bills made no important
impression on the exchange market which con-
+inued 10 be governed by the active demand for
remittance against enormous imports OF mer-
chandise at this centre at time of light out
ward movements OF commodities FeoeiHi
Treasury conditions have been materially bene-
flied by the gain in imports. and the government
deficit which at time was cause OF appre-
hension, no longer is a source Of worry.
Improvement in trade is proceeding more rap
idly Every factor by which industrial opera
tions are measured shows increasing strength
and from current indications the re-establish-
ment OF wholly normal conditions Is matter OF
a few months only. Evidence of revival, which
a few weeks ago was confined to iron and Steel
is now disccrnible in many other quarters, and
it is believed that nothing but widespread crop
failures. of which there is suggestion in the
current outlook in the agricultural community,
can prevent the development Of one of the
greatest eras of industrial expansion in the his
tory of the country. Bank cearings in the
month Of May showed increase Of 10 per
cent over the time last year. per cent
over 1907, and only about per cent under
the record Of May. 1906. when all departments
OF trade extremely active. Clearings. OF
course, have been swollen by speculative trans
actions but it should be borne in mind that out
side the speculative centres substantial gains
are reported. cities other than New York and
Chicago, for instance presenting an increase in
/ May Of 16 per cent over 1908 and 10 per
over 1906. Railroad earnings show steady prog
in the transportation business idle cars are
decreasing In number and commercial failures are
less with smaller liabilities Factories and other
large consumers of bitumnous coal are increas-
/ ing their orders for the product. and the fact
that the coal trade is always the last to show
improvement after a period OF business depres-
sion gives added interest to the better demand
for fuel reported. May the best month IN
two years in the iron and steel industry. and
/ every immediate sign points 10 active expansion
during the rest Of the year Railroads are taking
steel and general buying movement Of
rails is indicated. Copper is higher under the
influence OF a heavy domestic and foreign de-
mand. and In some quarters II is thought the
metal will sell at IA cents before the end OF the
present month.
Prices for commodities exhibit stubborn
strength. and the persistent advance in cash
wheat and the apparently low supplies serve 10
discourage talk OF artificial prices. The de-
crease in visible stocks and poor European crop
reports offset market influences the encour-
aging advices received from the farms on the
growing cereals. which indicate betterment in
winter wheat. normal spring wheat progress and
corn showing up we'll on a record breaking acre
age. Spectators apparently believe that they
will be successful in July wheat as they have
been in the May option. and at the moment they
are disregarding to a great extent crop reports.
operating the basis Of existing short holdings
and the unfavorable conditions in foreign wheat
countries. two factors which they maintain war
rant high quotations. even with normal yields
promised In the United States Flour has SYM
pathized with wheat in the matter Of price but
buyers inactive. taking only the amounts
they need for current requirements. Receipts
are light and stocks on hand appear to be COM
paratively small In the Pacific Northwest the
prospects favor large grain and fruit crops re-
ports from California encouraging and in
the Central West and the Southwest official state
compilations harvest conditions make good
reading for the farmers
Speculation in cotton futures has been irrer,-
lar, with alternating periods of strength and
weakness the tendency following the publica-
tion Of the government report being In the
direction of a slightly lower level The averaee
condition Of S11. comparing with 70 AT this
time last year and ten-year average OF 81 {
though on smaller acreage, was better than was
hoped for. and was particularly encouraging In
view Of the improvement in weather conditions
In the cotton belt since the government figures
were gathered. Cotton bulls believe that even
with an average crop prices will continue high
after the harvest, owing to the expected record
breaking requirements of consumers and this 20
likely, as they maintain that the comr,erciaI
movement will be the chief factor IN deter
mining this class of staple values In the dr,,
goods market business is encouraRinrIv active
at frmer prices. and jobbers report an exceIIar+
demand for fall delivery. Spring makes OF r,os+
cotton manufacturers are cleaned I'M With
autumn grades in such demand that II will tax
the mills to make deliveries on time. The gan-
erai movement In textiles reflects a marked in
crease In the purchasing power Of the people