New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-04
MONEY! AND BUSINESS

MONEY Az II d. SIN L'-A'
foundation which has been under way
for many months on the STOCK ENchalise
gives little indication of having run us
course though the heavy seillns Oh re-
cent days suggests the probabll or
+enonorarv cessatio of the movement
r. IS necessary to go back TO the over
sreculation and imitation Of the last year
TO find an adequate explanation TOT INC
disturbed conditions in the securities
markets. despite the fact that the specu-
1ative community insists in giving WASH
ineton the credit for the serious decllhes
that have taken place in prices OF III
vestment issues. Washington mas done
nothing that has injured the aclual
worth of stocks and bonds, but various
deveIopments in the way of legislation
and various decisions by the Interstate
Commerce Commission have been twist
ed into arguments for lower prices at a
time when technical market cond1tions
have afforded easy opportunities for sue
4 essful operations for lower quotations.
High grade investment shares are SELL
ing on an attractive investment basis,
and the same thing may be said OF
mortgage issues. Outside capital, how
ever, has not yet responded to the in
ducements offered, the banking interests
of Wall Street having been the chief
BUYERS on the declines.
Trade conditions are Irregular but
there is nothing in the situation that
warrants actual investment selling,
though in some instances investors are
compelled to CONVEX. their real holdings
into cash in order to protect their specu-
lative commitments Nevertheless, in
times of decentralization in the specula-
tive market, when downward move
ments are accompanied by distressing
run1ors and when passing unfavorable
developments are figured into permanent
adverse influences. timid investors pre-
fer to turn vested funds into actual
cash, and a considerable percentage of
the current selling represents this sort
of liquidat alton. Liquidation is under way
in most markets, and the REIMBURSEMENT
Of prices to lower levels eventually will
prove strengthening influence in the
general situation in none and business
in this country. Money is in good sup
ply in the East, and rates for loan &C
connlodatior are on a relatively low
basis, although current inCtcations point
to higher quotations at no distant date,
owing to the interior demand upon this
centre, which has begun earlier this year
than usual, last weeks shipments of cur
rency from New York reaching a larger
total than in any preceding week since
the week ending March IL.
Local bankers are somewhat appre-
hensive Over the heavy extension of
credit in the West as a consequence
OF the extravaganza and overspeculation
IN that part Of the country, and they
therefore are looking forward to abnor-
nally heavy demands upon their re-
sources in connection with the financing
Of the crops. Fortunately, sterling ex-
change market conditions give the
promise of a flow of gold from Europe
to this country in the autumn Com
nlerclal paper rates are frmer, with <
per cent the usual minimum, accept
ances at "A per cent being made only in
exceptional cases. Conflicting reports |
are received by the mercantile agencies |
regarding the current course of bust |
payments through clearing houses and |
gross railroad earnings. industrial move
rnents are still heavy though compari- |
sons with 1909 are beginning to be less
favorable than reported earlier in the |
year. In business circles opinion in
clines to the theory that expansion in |
trade cannot be looked for until all un- |
certainty over the outcome Of the har- |
vests has been removed The jobbing |
trade for fall is lighter than recently |
predicted. and IN some of the spring |
wheat states some cancellations of fall |
orders are reported. The production of |
pig iron continues in excess of consump- |
ton, Notwithstanding an improved in |
quiry for the metal which has developed |
at the expense Of prices, while in finished !
steel lines new orders are only fair in |
volume. Most of the steel mills are run
ming a from IS TO so per cent OF nor
NAL. Copper is dull, but prices appar-
emily have touched the bottom, for the
present at least.
Speculation in cotton futures is light |
on an irregular movement of prices, |
with no decided tendency at the moment |
in either direction. Reports from the |
plantations as rule are favorable. and |
government figures rejecting conditions |
as of June % make an encouraging
forecast of the final yield, a percentage
of S0.7 against ten-year average Of
1915 being shown. Spot sales at Liver
pool are smaller and curtailn1ent here
OF production of cotton goods is reach
ing large proportions. 1t is estimated
that the output OF the New England
mills in July and August will be 40 per
cent under normal and that the outturn
Of the mills In the South will decline up
ward of 10 per cent in the course of the
next few weeks Curtailment so far has
failed to sttaaslat6 trade the present de- |