New-York tribune., 1910-01-24
MONEY AND BUSINESS.


quotations for the larger number Of first
class issues to q level that returns
satisfactory income on investment pur-
cnases The lower prices have en-
couraged moderate amount of buying
Tor permanent account, but they have
1aiied to attract an active outside in
quiry from spectators. doubtless owing
TO the two successive shocks to public
confidence from the recent fragrant ma
nipulation by Stock Exchange interests
Practices that have been permitted by
the STOCK Exchange authorities tend to
bring about panicky conditions in the
street. and indirectly such conditions re-
act seriously upon the business com
munity. 1t is possible to frighten capital
through the abuse Of the machinery of
the speculative markets, owing to the
close relation Of legitimate speculation to
legitimate trade, and the fact that specu-
latlon and trade are closely associated
would make legislation seeking to control
speculation by law extremely unfortu-
nate. Yet, if the governing committee
OF the Stock Exchange does not exercise
the power conferred upon 1t by its volun-
tary organization, Incorporation under
state laws with state supervision may
follow.
Though money rates have declined
materially from the level prevailing in
the first week Of the year, current in
oications do not suggest that 1910 is to
be period Of cheap loan quotations. A
better demand for accommodation is ex-
neCtad Of
months, and the fact that time funds for
long maturities are substantially higher
than for short periods reflects a belief
among lenders that the market will be
more active at no remote period Busi-
ness men are arranging their affairs on
the basis Of large expansion IN the
country's industrial activities. Needs of
the commercial community undoubtedly
will be heavy toward spring, while it is
quite evident that the plans under way
for the raising Of additional capital by
the railroads will involve considerable
pressure upon money supplies, particu-
larly II foreign capital does not seek in
vestment here In volume and II foreign
exchange rates do not move more in
favor Of this country. Money is easier
abroad. Both the Bank of England and
the Imperial Bank OF Germany have re-
duced their discount rates. and as Idle
funds are piling up at European capitals,
there is some reason to believe that the
decline in Investment prices in this
market will bring some of this surplus
money to the United States:
While there is some trregular..y In
general trade incident to this season OF
the year. the volume of business as
measured by bank ciearings and rail-
road earnings is, large, with underlying
conditions sound. Spring orders re-
ceived by Jobbers are heavier in all lines,
and the general retail trade, though in
active In some sections owing to adverse
weather, Is heavy In the large cities.
The general position of the drygoods
market encourages the expectation of an
exceptionally profitable year. an indica-
ton of which Is found in the fact that
drygoods houses are active borrowers on
commercial paper. and in the situation
at the mills, which are running up to
full capacity and are disposing of their
product without difficulty. Unsettled
conditions in the market for raw cotton,
of course, induce conservatism among
both buyers and sellers, but In spite of
the decline in cotton futures manufact-
urers are making no important conces-
sion In prices. and apparently intend to
maintain their firm attitude on goods yet
to be made. Print cloths for next fall
are being shown. and authorities on the
trade believe that the inquiry will pre-
sent steady Improvement In woollen
goods the outlook is exceptionally prom
ising. Wheat and cotton are lower, but
the general level Of commodity prices is
high. and the revolt that is developing
throughout the country against the
cost of living and the growing demand
for an increase in wages intensity a
situation that supplies about the only
unfavorable feature in the business
world.
Pig iron shows greater activity in the
East, while in the West conditions are
somewhat less satisfactory. though the
general consumption is large enough to
strengthen confidence in the future of
the trade. Irregularity is reported in
finished steel lines, but the fact that new
puSiAACSS 10 iCioeifSiS SAc" 10 iiOl Woi
ing conservative quarters, as January i
ordinarily is a dull month in the steel
business, with improvement generally
looked for in February. Orders for new
rolling stock are moderately heavy, and
large contracts are pending. Trade in
terests, while reporting seasonable dull
ness in iron and steel. admit that the
volume of new business so far in the
current month has been heavier than in
any corresponding month on record
Copper is shade easier, but there is no
change in basic conditions, which show
gradually increasing demand for the
metal and reflect a disposition on the
part Of producers to hold back some of
their output, which they believe can be
sold at 10 cents pound later in the
season. The coal trade is enjoying a
season of great prosperity, with the
prospects favoring higher prices. The
leather market has been active since the
first of the year. and manufacturers of
footwear report a growing business.
Another Hungarian crisis is ended in |
the expected way. and In the same |
achievement the ground is being pre-
pared for another shifting OF the min