New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-11
MONEY! AND RJ1sTNESS

J
quotations must advance 70 a materially better
level irrespective Of money market conditions.
! The artificial character of current speculation
for the sO-called long account Is reflected in the
| manipulation OF various shares, notably United
| States Steel common. in which the reported
| dealings in the last six business days have been
| equivalent TO about one-third of the total issue
/ Of common stock, and In the relative inactivity
of the general list in the face of tremendous
! transactions in few popular issues that lend
themselves easily TO the operations of capital
lists who have been financing their speculation in
the local and foreign money markets. Dealings
of this sort have carried prices for the larger
number of issues to a range that discourages in
vestment buying. and though conditions govern
ing the actual worth Of securities inherently
sound, permanent investment money is not seek
ing employment in stocks at prevailing figures.
The leading railway shares closed the week at
an average of 133.45. against 1866 a week ago,
and the chief lndustrials at SO. loss Of 331.
High loan quotations not unusual at this
time of the year, and the advance in call and
time funds creates no surprise In quarters where
factors controlling the course OF the money mar
ket have been closely watched. The long period
of easy money that followed the panic OF 1907 is
at end. not only in this country but abroad
as well. and from now on higher interest rates
must be expected at all financial capitals. In
the local market call loans last week to 6
per cent, the movement being accompanied by a
hardening in money for fixed dates, borrowers
shifting from demand to time funds the
forced and we'll founded belief that for a con-
siderable period stiff quotations with wide
fluctuations might be looked for in the call de-
partment. The Bank of England raised its dis
count rate in the week. and a higher price was
reported for open market funds. with indica-
lions pointing to a further advance in the Bank
Of Germany's rate to-day and 4 per cent rate
for the British bank before the end Of the
month. Money invested in Wall Street by the
South and West in the days OF trade depression
is being Withdrawn for use in business channels,
and unfortunately New York is not in a posi-
ton to import gold from Europe TO offset the
drain for out of town account, owing to this
country's unfavorable foreign commerce situa-
ton in respect to exports of merchandise. which
are heavily exceeded by receipts of foreign
goods Banks throughout the country are
loaned up to about the limit of their reserves
and further borrowing on speculative account
may be attended with grave danger.
Commercial centres in all parts of the country
report business strength and activity Bank
clearings for the week ended Friday show a
gain of 81 per cent over the same time year
ago, railroad earnings for the last week in Sep
TENDER gain of 1892 per cent and commercial
failures for the same time a decrease Of 80 per
cent. Total idle railroad are IS 3SS against
7S,79S September 10 and S33.O19 at the first
of the year, and the pig iron market, which is
one of the best barOmeters Of trade reflects the
highest production in the histoIj of the United
States. The crops have been made. and increas-
ing expansion Of general business appears In
evitable, especially the demand for consump-
ton in all lines is growing every day. Manu-
featuring interests, as rule, are not carrying
heavy supplies of raw materials and apparently
they facing readjustment of prices, owing
to the strength in products notably in the
case of cotton goods, which quotations have
been advanced in many departments. The
question of curtailment in consumption Of cotton
goods is being actively discussed by the mill
men consequence of high costs and though |
no general plan has been agreed upon many
mills throughout New England and the South |
running at something less than full capac-
ty. In the general drygoods market widening |
of activity is reported in spite Of the stiff prices
for raw materials. with fair volume Of trade
on advance spring business
Iron and steel trade conditions practically are |
back to the level of the period of greatest prosper
ity and the almost Phenomenal recovery recorded
in the last few months is indicated by the enor- |
nous production of pig iron in the month of |
September, which was at the rate of upward of |
30OOOO0O tons year, the gain from February |
tn poorest month of the year. amounting to |
bI ,SbO tons Pig iron sold last week at Pitts |
burg at the highest price recorded since the |
active summer of 1907. The railroads are heavy
buyers of rails and enlarged demand is re- |
ported for structural materials from the build |
ing trade. which in this city alone shows per-
mits for new buildings in the last nine months |
of $3.50, against 6,O39 in the time in 1905 |
with gain in costs of $S6.639 100 Copper |
trade authorities believe that the reports of the |
Copper Producers Association in the rest of the
year will show a growing decrease in visible |
creasing production the demand for consump-
ton soon will he heavy enough to bring abou+
a higher range of prices for the metal Domestic
buying shows improvement. The coal trade Is /
entering a period of greater activity Note |
worthy strength is shown in the market for
leather, owing to rapidly expanding inquiry
Speculation in cotton futures is active and /
Notwithstanding an extremely poor government
report on conditions as of September % prices
are somewhat lower than those of week ago |
Cotton has been coming forward in large vol
ume and while cotton trade circles predict /
higher quotations later in the season the gen
eral sentiment favOrs a lower range for the mo-
ment, though the idea of a successful bear cam
paign is not accepted by the best informed in
terests In the market. The experience of mast
years has shown that in marketing the first five |
or six million bales prices have declined and in /
the present case authorities believe that cotton
bought in the next few weeks will he at tbe /
cheapest prices of the cotton year Little
change is reported by the government in it's es
innate of wheat and corn conditions and proba
BILE yields from a month ago. The corn crop
VIII not be the heaviest on record as predicted /
earlier in the season. but the total harvest Of all
core llc xtsiII no Iav