New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-04-12
MONEY AND BUSINESS.

Speculation in stocks and grain has carried
quotations to dangerous levels for buyers at
prevailing figures. but the probability of re
action finds little encouragement in quarters
where it is maintained that the upward move
rnent will run Indefinitely. Operators In
stocks who would not buy when values were
from 10 to 40 points lower are now enthusiastic
purchasers OF securities on borrowed money,
while the same thing may be said OF the public
traders who are specializing on the long side or
the May wheat option above 81 % q bushel.
though they would not touch it when It could be
had IS cents cheaper Speculation OF this char
acter NAV continue under the influence OF easy
money and scientific manipulation for some
time TO come with the usual ultimate collapse
bur the suggestion OF big decline Is not N
favor among the people who bellows they are
about TO acquire sudden wealth. or among the
interests that are waiting for further gains IN
order 20 dump their holdings upon the public
In spite OF the fact that the actual value or IN
vostrnent securities rests upon \ SOHO 1ouHua-
ton. prices in most Instances are too high~to
attract active buying for permanent income
yieId At the close last week the leading rail-
way shares were az an average of 1925. against
12ISO I'm the preceding week. and the chief In
dustrals at s7.79. gain Of 1S9
Notwithstanding tho expansion in stock mar
llet trading there has been no Improvement IN
money rates Merchants are placing little paper
and though the banks at this centre are ready to
buy first class names in volume, offerings are
extremely limited banks at Western cities doing
a better business in this respect than tho local
Institutions Time money for long maturities
can be had on mixed collateral at rates that
have Induced many Wall Street houses to take
amounts for over the end OF the year several
loans ~ mis- character recently having been
made on 4 31s per cent basis while in the call
deportnent accommodation is offered almost AT
the borrowers terms. with the supply far III
excess of the demand Sterling exchange IS nos
,,,,,cb below the point at which gold could be
ecnt 70 Paris. but the buying In the local mar
ket Of securities for European account furnishes
= supply OF bills heavy enough to prevent ''
outward movement Of the metal. If it were not
for the foreign demand for stocks sterling wouId
rule al materially higher level, as offerings
., oo,,r,arc,aI bills against merchandise exports
are too light to satisfy the demand for remit
+anca Evidence muItipIes daily that money
mo rket conditions will remain easy for some
time TO come here and IN Europe. owing cheny
N IN. lack OF mercantile inquiry, tho business
community apparently having ample funds TO
meet all current requirements.
Merchants are not octive borrowers of money,
b,t trade conditions are healthy with increased
buvinx power reported IN many lines. The do
mand for foreign goods is increasing ana hesF-
Ter orders are reported in various departments
for immediate and fall delivery, inquiry for the
latter being especially pronounced in the dry
goods market Drygoods merchants throughout
the country are well satisfied with the spring
business. which is practically over, and when
the tariff question is settled there Will be- from
all Indications a strong movement in all
branches ,rhe steel companies begin the second
quarter OF tho year with prices unchanged but
the outlook from the point Of view OF production
and new orders IL far brighter than It was car
Ter In the season. steel manufacturers express
ing the utmost confidence IN the future and
showing dissemination 20 make contracts call
ing for delivery over long period. on the the
DRY that there will be marked improvement In
quotations later in the year. The United States
steel Corporation has booked a large amount
of business in structural material, tin pates and
sheets as a consequence of low prices. and just
as soon as tie railroads enter the market the
trade gradually will return TO the position that
prevailed prior to the panic OF 1907. The agri-
cultural implement and machinery market shows
fair progress, particularly in the export trade.
which has been helped by the Increased pur-
chasing power Of the farmers in Argentina
and Australia Production of copper continues
to exceed consumption.
Grain prices have advanced to new hign rec
ords for lJUJ, ana III the case "4 winner "ilS"'
the May option. with only two exceptions. is
selling at the best figure of the last twenty
years. Government estimates las of April l
show the percentage OF condition below that at
this time a year ago, but winter wheat has
an extraordinary capacity to recover lost ground
under favorable conditions great improvement
In the next ninety days is possible. Stocks on
hand are relatively low. especially in Europe.
and large general crops III the United states
this year will add much to the wealth of the
country The advance in wheat has been ac-
companed by higher prices for -four, the &c
mAnd for which shows Improvement particu-
larly in grades hitherto neglected. Cash wheat
nas advanced about 80 cents since January !,
and in spite OF the high levels prevailing OK
portcrs more disposed to buy. Speculation
in cotton futures broadened in the last week on
81 rising movement of values, adverse weather