New-York tribune., 1909-09-06
HONEY AND BUSIN ESS.

losses recently suffered and by the extent or the
! manipulation employed TO advance quotations 10
the high levels Of two weeks ago. but the peoPie
who have stocks for sale are counting upon the
argument of industrial expansion. large grain
crops and activity in the iron and steer ousi-
ness to attract renewed outside inquiry lot
securities The investment market ~ nactlNe'
Bond houses are experiencing great dlincu'ty III
securing purchasers for the issues they'~have on
hand. and corporations with new financing III
View have postponed to a great extent she pub
lie announcement of their plans owing 10 the
congested condition of the market. The strength
of factors governing the intrinsic worth of In
vestncnt securities naturally encourages pro-
nounced optimism the part Of owners or
American railroad and industrial shares, but IN
view of the prospects of higher rates for money
and the extended position of the loan account OF
the local financial institutions conservative In
terests advise against speculative operations at
this particular period. The leading railroad
shares closed the week at an average price or
133 % against 131 a week ago, while the cn1ef
irdustrials were at an average OF lep65. a gam
of / 65
New York banks losing currency on their
operations with the interior. reflection OF
which * presented in the course of domestic ex-
change and in the known movements Of money
which show for the la week substantial de
cline in bank cash holdings. Total reserve above
legal requirements Of the Clearing House banks
stands at SIS, ,33s. 20. compared with S59.64i9oo
a wear ago and in view Of the increasing in
ouir7 for funds at out of town points In con
nectton with fall trs de requirements and for
crop moving purposes il is probable that local
loan quotations soon will rule materially higher
despite the remarks usually heard at this period
of the year that the interior will be able 10
iii all ing
its balances at this centre In the last year the
interior has sent an enormous amount Of money
to New York because 1t could not find employ
rnent for 1t at home. but conditions are rapidly
changing in direction that suggests the neces-
sity OF heavy Withdrawals from this point in
the near future. London has been fair lender
IN this market. and Just as long as rates remain
higher here than they are abroad foreign loans
will be available. Our export trade continues
poor. and unfortunately the present outlook
does not encourage the idea that excess mer-
chandise exports in the autumn will be large
enough to offset financial indebtedness in
Europe.
General factors underlying our industries gain
strength each week and it is only necessary 90
refer to bank clearings, railroad earnings. iron
and steel trade statistics and grain harvest re-
ports to find reason for the confidence that per-
yades business circles. Cotton crop prospects
are poor, but otherwise the agricultural situa-
ton is uncommonly promising. Bank clearings
In August averaged daily 81 per cent better
than in the same month last year and per cent
better than i'm 1905. August business failures
light, both in number and in liabilities the
mortality being the smallest. with the exception
OF July of the current year. since September,
1906 while for the last week there a de-
crease of forty three In the number of failures
reported. Gross earnings of railroads for the
first three weeks of August were heavier by 10
per cent than in the corresponding period year
ago with loss Of only per cent from 1906,
when the transportation business breaking
all past records. Manufacturers in all divisions
are actively employed, and general wholesale
transactions show noteworthy increase
compared with this time in 1908. similar condi-
tiOns prevailing in the retail trade, in which
stocks have been depleted, with the assurance
of large fall operations. Wholesale drygoods
houses report a growing demand and though
there is some hesitation in cotton goods and
yarns in the primary markets owing to condi-
tons affecting raw materials, the outlook prom
ises active output at firmar prices
Production OF pig iron in the last month was
enormous. but there indication of sur
plus stocks being accumulated The tendency
OF prices has been upward for iron and finished
steel products. with all the signs pointing 70
though passing reaction in pig iron is not inn
probable That the iron industry practically has
recovered all OF its lost ground is evident from
the fact that the rate of production in August
compared most favorably with the actual out
put in 1907, the banner year in the trade. Not
withstanding the fact that the orders from one
of the largest consumers of steel plates i'll the
country almost have ceased. owing to the strike
at the company's works, the demand for ma
c1a
operations by the Pressed Steel Car Company
would mean a substantial delay in deliveries of
plates. The strike on tie part of the employees
of this company is serious, but it is believed
that a settlement will be forced in the present
month. Every furnace in the Pittsburg district
is in operation and furnace men are not inclined
to quote freely for 1910. owing to uncertainty
the coke market in which prices are be-
coming frmer. The railroads continue to award
liberal orders for and locomotives while
contracts for steel rails are heavier.
Commodity prices show strength with the onlv
important decline for the week in wheat. Specu-
lation in cotton futures has been relatively light
on firm basis OF prices, though advances fol-
lowing the publication of the government report
were not important, owing to the fact that the
conditions shown had been pretty well dis
counted. The report reflected a serious dete-
roration in the month OF August. the decline In
conditions since july amounting to 81 points
an average of 6:I.7. the lowest ever recorded
Drouths, accompanied by high temperature.
causing premature opening of bolls and pre-
venting the development of the stalk. was re-
sponsible for the poor exhibit, but in cotton
trade circles il was thought that the situation
might be somewhat more favorable than off,
cially stated. Wheat harvesting is proceeding
under almost ideal conditions and the outlook
for corn continues 10 favor the early estimates