New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-30
MONEY .1YD BUSINESS.

markets. The demand Tor StoCfAS an"
| bonds on the local exchange is l1ShI
and while bankers are working to MAIN
| tain stability in price movements theE
are unable to attract an outside invest
ment or speculative interest IN the daiiJ
dealings, which last week ran to unin-
portant totals. At the close OF busl-
ness Friday the leading railroad shares
stood at an average price OF l-I-9o'
against 1882 at the end of the preced-
| ing week, while the chief industriais
showed an average of S7.S6, decline OF
| 1.SO the level for the railroads show
| ing q loss from the high figures MADE
early in the year of 7.94 points and the
/ industrials loss of 10.44 points. From
an investment point of view first class
stocks as a rule are selling on moder-
ately attractive income basis. with the
same thing true of mortgage securities,
| but home capital is not moving IN any
volume into either department of the
| market. There is a scarcity of capital
| here available for investment purposes.
! Although our railroads experience
great difficulty in making domestic
! market for new issues, foreign bankers
are willing to finance the capital re-
quirements of many of our companies,
| operations of this character since the
! first of the current year amounting to
! $40, 800, 600 including S50,0OO0o0 st.
| Paul debentures sold in Paris last week.
! In addition, European investors have
| bought New York City corporate stock
and revenue warrants to an aggregate
sum Of about S30,O00,000. The fact that
! the St Paul bonds have been taken by
ultra conservative French institutions
! speaks well for the credit of American
railroads, but this transaction and
others of a similar nature nevertheless
strengthen the power of Europe to draw
gold from the United States in times of
unfavorable developments. here or at
periods when foreign banks find 1t
necessary to increase their supply of the
yellow metal. Our financial markets re-
fleet uncertainty as to the effect of higher
railroad rates on the country's business,
uncertainty about the effect the proba BILE
enactment of the railroad bin will have
upon the transportation industry, un-
easiness over the falling net earnings of
various railroad companies as result
of increased wages and general cost of
| operating and uneasiness over the ex-
pansion in Western loans on farm lands
| and irrigation projects.
Reason exists for more confidence about
| the outlook for large harvests, but the
actual improvement in agricultural con-
| ditions has not been accompanied by
| heavier dealings in stocks, though it has
| brought about a lower level for conlmod-
| ity prices. Money rates in New York
are relatively easy. yet the banks are
| exercising close scrutiny of collateral
| and are more interested in building up
! their reserves than they are in placing
funds in loans against stock market COM
mitments. Time money is in light de-
mand ON short maturities, with the best
| inquiry for long periods, while CONNER
cial paper shows increased activity, es-
| pecially in respect to manufacturers
! bills, which are much more in evidence
than those of merchants, offerings of the
| drygoods trade being particularly small
| Bills drawn against our securities placed
| abroad have caused an, easier tendency
! IN the lpIelSt cACHdilSt llleti kSl, anu
| consequence of the exchange created
| by sales of bonds already effected and
| sales that are expected to be announced
! in the near future, together with heavier
| offerings against exports of domestic
products, it is believed in financial cir
| cles that the high point for sterling has
been passed for the season.
1t is encouraging to note that owing
| to the decline in the wheat market ex
| ports Of the cereal are growing larger,
| shipments last week for instance. reach
ing total of 3,594, 144 bushels, as COM
pared with 291S,165 in the week before
and S,1S2,90S in the corresponding period
| in 1909 In short time wheat prices
| have been swept down about 10 cents a
| bushel in spite of efforts of specua-
| tive interests to hold the market, while
| the foreign markets also have gone to a
| cheaper level, in sympathy with the de-
| cline here and the improvement in crop
| conditions in Europe and India. re
| adjustment of the quotation on flour APP
pears inevitable. Natural conditions are
beginning TO exert their proper influence
Oh prices of domestic products. and
| along with the weakness in grain there
| have been active liquidation and lower
values in the cotton market on better
| crop prospects in the cotton growing
states In the cotton goods trade buyers
| show more confidence in the price out
| look. but based on the present cost of
| production sellers are not yet able to
| figure out material profits. The general
drygoods trade while far from active is
enjoying a larger volume of business
than has recently been reported.
In building lines marked gains are
noted in the amount of new work under
way and for which plans are being
drawn, expansion in this industry being
reflected in greater activity in the mar
ket for structural materials. Distinct
| improv ement marks the course of the
iron and steel trades. The concessions
in pig iron prices and the restriction in
production have attracted a better buy
ing demand particularly for foundry
| iron in the East, while in finished steel
! lines orders are larger than they We're q
| few weeks ago. especially from the rail-
roads and from the farms, the demand
from the latter for implements being
unusually heavy Buying by the rail-
! roads doubtless Will increase to a greater
extent following the final settlement OF
~ r,,aotinp In he eonper ma rlx of