New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-09-20
MONEY AND BUSINESS.

nation of resourceful spectators who are disre-
garding signs of higher rates for money and
who are exercising all their talents to attract
an active public following for the purpose of
liquidating their accounts at fancy prices
Transactions present none of the elements of
conservatism and reflect total absence of In
vestment buying Prices are too high to induce
investment purchases, but the advanced range
prevailing fails to discourage new outside buy
ers borrowed money, despite the fact that
Nthe time apparently is not far distant when a
materially better price for accommodation will
be demanded. Rumors of deals and increased
dividends whet the speculative appetite, but
careful operators appear to be selling on all adj
vances on the we'll founded theory that the mar
ket is running into the danger zone, in spite or
the argument heard in some quarters that moth
ing can happen to prices just so long as indus
trial conditions are sound. The tendency toward
overspecuatiOn is increasing There has never
been a time in the Street when trading of this
sort has not ended in collapse. Leading active
railway shares closed last week at an average
of 1861 against 1915 week ago. and the
chief industrals at 1886 gain Of 33l-
Local bank reserves at a low point, and
all indications point toward substantial adj
vance in money rates The interior demand is
active and while domestic exchange for the mo-
ment is influenced by out-of-town operations in
the stock market involving the shipment of
money To this centre. banks at other cities eX-
pect 10 call heavily upon their balances here in
the future owing to the requirements at
home in connection with the financing of the
harvests and growing business activities. Time
and call money rates were harder last week, the
quotation in the call department Of the market
advancing to 3 per cent for the first time in
many months while there also a frmer
tendency in the market for commercial paper. in
which the offerings were moderately heavy.
Merchants in all parts of the country
strengthening their position in expectation Of
active future needs. Sterling exchange Is
trihe easier az a consequence Of the advance in
money. but outside OF bankers drafts the
ket is suffering from a great scarcity OF
change. with no indication Of immediate in
crease in the supply OF commodity bills.
export trade continues to make poor returns.
imports exceeding exports in August by more
than 100000 Europe IS lending a large
amount OF money here while its own require
ments are becoming more urgent as reflected in
hrmer discount rates at Continental points and
an active demand upon London for gold
Improvement on a conservative scale is re-
ported in the larger number OF industries and
general business progress is reflected in growing
bank clearings and increasing railway earnings.
the latter showing for the second week in Sep
tember a gain of more than Il per cent. while
present gain of % per cent The extent OF
business recovery since the depression follow
ing the panic is indicated by the upward swing
OF commodity prices In recent months. the con-
Stunning world finding itself forced to n level
the highest since November I. 1901. and only ~
pont under the best recorded Advances
are largely in manufactured products semi
manufactured materials. livestock and livestock
products. and II is quite evident that a higher
x,-iIl 10
have yet 10 feel the effect OF expanding demand
The textile markets in a strong position
and though the demand for cotton fabrics is
quiet trade authorities assert that the very fact
that cotton is kept at the 12-cent level fore
shadows the development Of a heavy inquiry at
remote period. Prosperity has returned 10
the agricultural districts. and a buying move
ment in the drygoods trade from the farmers
promises to be a most important factor in the
months TO come.
In the pig iron market an increased demand is
reported from the steel interests and prices on
all grades of Eastern iron have been advanced
30 cents ton. There has been notable in
crease in transactions involving a large ton
mage, and If the present inquiry continues a
further stiffening in quotations may be looked
for though i'm conservative circles some uneas-
ness is felt over the rapid tendency of prices
toward recovery. In the Central West furnaces
I
iron. Finished steel products are higher under
the influence of growing inquiry from con-
sumers. the volume of new business Offering
being large enough to keep the mills far behind
in their deliveries. Buyers appear to be more
anxious to make contracts than sellers IL is
believed that the New York subway situation
will bring forth huge tonnage for the steel
plants in the coming year, while the railroads
are counted upon to supply a tremendous volume
of business in rails. The current sales of
rails are larger than at any time since the early
part of 1907
Trade reports from the West and Central
West are better than those received from anv
other part of the country the crop movement
stimulating demand and helping collections
Wheat has shown conspicuous strength in spite
of an active marketing of the product at the
Northwest and increasing domestic supplies the
advance in quotations having been helped In
Some extent by a disappointing harvest out
look in Argentina and decrease of 13OOOOOO
bushels in the worlds visible supply Flour is
lots Further unfavorabe reports on the condi-
ton of cotton are responsible for increased ac-
tvity and higher prices in the cotton market
Exports of cotton have increased as a conse-
quence of better demand from English spin
ners. and the consensus of opinion in local and
foreign markets favors the theory that the nevv
crop will be below the worlds requirements
even with the carryover of more than a million
bales. In some we'll informed quarters OF the
trade IL is believed that as the season advances
cotton will sell from 5 TO 5 cents pound above
the current level