New-York tribune., 1909-05-03
MONEY AND BUSINESS.

in many cases current quotations for shares ade-
quateIy measure expected Improvement, there IS
no indication in speculative circles OF ma
teriaI change in the course of values. Bankers
whose operations require look ahead appar-
entity are satisfied that our industries rest upon
a secure foundation. and that while readjust-
ment is still incomplete, with some uncertainties
in the situation, normal conditions are return
ing in all departments Of the nations trade ana
commerce. This optimistic sentiment in bank
ing quarters is reflected in the activity OF bank
ing houses in the matter of securities issues,
which are readily financed at reasonable terms
and quickly disposed of to investors the opera
ton supplying a marked contrast to financial
transactions of a relatively short time ago. when
corporations in urgent need of money could
place nothing but short time notes at high
cost Railroads are selling long term bonds at
attractive figures, and It is not unlikely the
present year will be record breaker in the
amount of new capital issues put out for re-
funding purposes and for the raising of addi-
tional money for Improvements and extensions
Spectators in stocks bullish because our
leading f1nanciers are active in the investment
markets, and fortunately wholly speculative
movements are now being conducted in an or
derby manner. Continued ease in money, how
ever may lead to dangerous imitation,
HealthfuI reactions developed in the early
part of the last week. and at the close the gen
eral list showed little change from the preceding
week. with the average for the leading rails at
1234O against 1925 and the chief industrials
at S912 gain OF .33. The large amount of
idle money in the country is helping the invest
ment markets. and until the mercantile demand
for accommod alton becomes more active no i'm
portant advance in quotations is looked for, the
slightly firmer tendency in call funds being OF
significance so far as an immediate rise IN
rates Is concerned. Money is easy abroad, and
the plethora of funds at foreign capitals Will
doubtless soon become more of factor in our
securities markets and in export trade, un-
less European political disturbance should de-
velop of which there is not the least indication
at the moment. AS France is the largest holder
of Turkish securities and practically controls
the Ottoman Bank. it is not surprising that the
Bank Of France desires to increase its already
large gold holdings until it is assured of the
stability Of the government. and therefore
II is possible that further amounts of the
precious metal may be withdrawn for Paris &C
count both from London and New York Time
money is easy and in abundant supply, with
over the year loans low as 3I2 per cent, while
commercial paper is in active demand, with
offerings somewhat heavier than were recently
recorded. No material increase is noted in for
eign exchange bills. but rates trihe easier.
as a consequence OF less active demand for
remittance High prices for commodities con-
tinue TO check exports Of domestic products
Trade conditions as reported from all parts of
the country show conservative Improvement.
but adverse weather in the last week sterfered
with retail operations and checked the growth
of the crops. The excessive moisture, however,
which has been general except in parts of
Texas. places the agricultural situation in a
position that will quickly respond TO few weeks
Of sunshine. Both wholesale and retail opera
tions larger than they at this time a
year ago, indication OF which is found in ex
pandng bank clearings and heavier railroad
earnings, payments through clearing houses last
week showing a gain of II per cent over 1908
and the most recent railroad earnings in
crease Of about Il per cent. Commercial fail
ures last week were 2I3. against $50 in the same
time a year ago. with liabilities comparatively
light. a firmer tendency in prices for certain
finished steel products is reported, and signs of
distinct improvement in iron and steel de-
yelopments that encourage the expectation OF
increasing strength in all industries Doubtless
the growth in orders and production has been
exaggerated. but the fact remains that accord
ing TO official statements the demand from con-
sumers has increased. especially from the rail
roads, which are more liberal buyers of
rails. Pig iron conditions are better. purchases
being for actual requirements as compared with
speculative operations in recent months. The
consumption of copper is increasing.
Textile trades held back to some extent by
uncertainty over the tariff. but the general mar
ket shows fair degree of activity, especially in
wool. the demand for which is unusually active
in all parts Of the country. Cotton values have
been helped by reports cotton crop condi-
tions and by the advance in the price Of silver,
the latter indicating an increase in the pur-
chasing power Of the Oriental markets for cot
ton fibre ana cotton fabrics. The strength of the
raw material and the substantial amount of or
ders already in hand have encouraged greater
activity in the primary cotton goods markets
while in the secondary market moderate orders
have come forward. The general market for
drygoods is quiet. with prices firm and season
able demand from customers of the large retail
stores. Speculation in cotton futures is pro-
ceoding on the theory that reports of a reduced
acreage and the damage done to the Texas crop
by the long period of dry weather In that state
warrant higher price levels. but little is actu-
ally known about the next crop II appears pre-
mature to jump to the conclusion that the yield
this year will he below requirements. The sea-
son is late. but this is reason for the asser-
tion that there will not be an average harvest
Wheae is recovering from the effects of the
slump following the retirement of the Patten in
terests. the upward movement being based on
the persistent strength of the cash situation at
home and abroad and the oversoId position of
the market. The rapid advance in cash wheat
has been accompanied by Improvement in the
price OF flour for which the demand is not ac-
tive consumers using what they have on hand
and generally keeping out of the market in the
hope of lower quotations To the ordinary OBJ
server II would appear that with July wheat
selling about 20 cents higher than at this time
last year bullish factors in the situation had