New-York tribune., 1909-10-04
MONEY AND BUSINESS.

I
buying by commission houses for the account
Of the so-caIIed pubIics frmsr tendency IN the
money market and indications Of much hlgher
rates falling to discourage the idea that inc
general level of Stock Exchange values Woulo
move in an upward direction for an lnoeHnl'e
period The fact that prices fully measure lli0
establishment of normal conditions in the
| business world is wholly dsregarded IN current
! transactions involving the use OF oorro"e"
funds, but 1t carries weight however III invest
ment dealings, which have declined 10 uhllh-
portant daily totals, especially IN the Dohu ue-
partment and among the high grade railway
shares Preferred industrial issues IN many
instances appeal to investors, and are oeing
bought in fair amounts, particularly in the case
! of the shares of the big corporations that proved
their ability 10 maintain dividends in the recent
months of business depression. Basic condltlohs
are sound and naturally encourage optimism
among owners of American securities but spec
ulation has run into the danger zone at time
when bank loans are heavily extended and cash
resources are relatively light The leading
railway stocks closed the last week at an aver
age Of 1866, against 1S478 week ago. anu
the chief industrials at 1926 gain or LIS
A distinctly frmer tone was reported in the
money market, and, though local banks received
a large amount OF cash as a consequence OF
| expenditures in connection with the Hudson
| Fulton celebration they lost on their operations
with the interior and with the government
Clearing House figures showing conditions as OF
Friday night rejecting decline in the reserve
of s525O525 to S2045,O75. The demand for
money from the South and Southwest is in
creasing, and exchange at Chicago on New
York foreshadOws heavier shipments Of cur
rency to the Middle West and the Northwest
in connection with the marketing of the crops
Od1fiO
from mercantile sources. Local banks are send
ing substantial sums of money to Canada, while
they also are financing a Japanese inquiry for
gold at London, the latter centre paying its
obligations on Japanese account through its
credits here. Foreign exchange rates are alb
normally strong for this season of the year with
current indications pointing to a high level
throughout the autumn, when under ordinary
conditions this country should be importing
gold against a trade balance in our favor I'm
ports of merchandise continue to run far ahead
of exports, the record for the last week at the
port of New York showing excess Of i'm
ports TO the value of S7,7OO,575 and an increase
in the latter since January l Of s174,465,16O
Foreign discounts are higher.
Business conditions throughout the country
practically are back almost to the basis of the
! years of greatest prosperity, and though in GER
! tain lines some irregularity is noted no essen
! tial weakness is disclosed. Bank clearngs and
/ railway earnings. which are the best barometers
of trade. compare most favorably with the high
records of preceding years, while the same thing
may be said of the iron and steel industry,
which also supplies a trustworthy indication of
the course Of business in general In the last
week clearings at all cities showed a gain of
| % per cent over the same time year ago, and
railway earnings an increase of 1850 per cent.
Cooler weather is important influence in
| charging distributve trade. which promises TO
be heavy in volume in the last quarter of the
year. though in the case of drygoods the situa-
| tion is somewhat complicated by the high cost
of raw materials. Sharp advances have been
made in cotton goods and yarns, but in spite
of the movement the general position of the
drygoods market is far stronger than it was a
| few months ago. with all indications pointing
to a seasonable increase in business Fall trade
| is opening up in most encouraging manner in
all sections of the country, and orders for
staple goods at the chief mercantile centres are
well in advance of those reported year ago.
Pig iron prices are maintained at the high
levels recently established, and the possibility
of importations of foreign iron is close enough
TO prevent a runaway market. The larger man
ufacturing concerns are consuming an enormous
! amount of the metal, while the smaller COM
panies are in the market for increased ton
quiry in the course of the next few months
based on actual business needs rather than on
speculative commitments. The element of
speculation has not developed in the trade and,
according to the advices received from the lead
ing interests, expansion is along absolutely
healthy lines. The railroads are buying steel
rails at a rate that indicates the largest pro-
duction in 1910 in the history of the steel in
dustry. while similar conditions are foreshad-
owed in the output in all departments of the
business. In 1906 the steel rail mills Of the
country produced 3,977 SS9 tons, the greatest
tonnage on record, but from present movements
ii is not unlikely that next years total will
reach 100000 tons Though the copper indus
try has not yet felt the effect of reviving pros
perity authorities in the trade predict a rapid
increase in the consumption of the metal at no
remote period. Greater activity is looked for in
coal.
Speculation in cotton futures is active on an
irregular movement of prices. efforts of the bull
contingent to advance quotations on the expec-
tation of Il short crop being offset by sales
based heavy receipts and on the desire of
operators to convert paper profits into cash
The idea that the Census Bureau report to-day
might disclose an Unexpectedly heavy ginning
up TO that time also has been a factor in the
trading. Spot cotton has been active and spin-
ners are calling for larger consignments in
Guiding an increased demand at Liverpool In
the majority of commission houses in cotton
market circles it is believed that eventually
prices will range we'll above the current level
September wheat recorded sensational advance
last week. but unimportant movements were re-
ported in the other options Large receipts and
favorable reports from the winter wheat halt
tend to prevent sustained advance. while the