New-York tribune., 1910-08-29
HONEY IND RE&[NESS-

y \
Securities markets are inactive. and
the outlook for a material expansion in
the speculative and investment demand
in the near future is not promising, IL
spite of the relatively low prices pre-
vailing. The larger financial interests
are doing nothing TO encourage wide
speculative inquiry for stocks, and al
though the banks are we'll supplied with
money commission houses find little need
Of increasing their loans, as the public
shows no disposition to make specula-
tive commitments on borrowed funds in
any department Of the market. A some
what better demand for railroad mort
gage issues reported a fortnight ago has
not been followed by enlarged operations
on the Stock Exchange. Some fair
sales. however. have been made over the
counter by our leading bankers, who.
nevertheless, do not look for substantial
participation in the market by investors
until later in the season, when, it is
thought, there will be more individual
and corporation capital available for
actual investment purposes. High class
bonds offer excellent opportunities at
prevailing prices for people who have
idle funds on hand.
Financial and business circles find in
political and railroad rate uncertainties
reason for current dulnesS in many mar
kets. but they are unable to discover
anything in the present situation that
warrants the expectation of the develop
ment of a period of real Industrial de-
preston. Underlying factors are sound.
The country is going through a season
Of readjustment in its industrial and
commercial affairs, and while the
process apparently is not completed,
safer and stronger conditions have been
effected. The position of the local banks
is unusually strong for this time of the
year. and in the West and South healthy
liquidation of loans has materially
helped a situation that a few months
ago contained many clements Of grave
danger. Interior banks will not be able
TO finance the harvests without recalling
balances at this centre, but it is possible
that as result Of the quiet condition Of
general trade the demands for currency
upon the New York banks viii not 3e as
heavy as was predicted earlier in the
year, though at this. stage OF the season
the inquiry for funds reflects average
needs in the South and West Clearing
House banks are placing their money on
call at low rates, but thew show no
willingness TO lock up their funds in
time maturities, the minimum rate on
large loans being ~ per cent with little
accommodation available under 4a4 per
cent. The demand for commercial paper
is inactive and offerings are not heavy.
Wall Street is looking forward to in
Creasing exports and declining imports,
especially larger exports of cotton when
the deadlock over the question of our
banks guaranteeing bills of lading has
been broken It was thought a week
ago that the action of the railroads in
announcing their willingness to attach
valuation certificates to cotton bills
would satisfy foreign bankers, but
bank guarantee is still insisted on, and
the outcome of the situation is problem
atical. though it is possible that in
strengthening their cash resources to an
enormous extent the larger New York
banks have had in mind the possible
necessity of financing cotton exports
without aid from abroad. Foreign ex-
change is moving against this city. and
unless Europe becomes a heavy buyer
OF American securities New York will
not be able TO secure gold abroad in the
autumn except as loan, even with a
large outward movement of merchandise.
owing TO the fact that we are entering
the fall months without a trade balance
in our favor, while our fixed obligations
abroad are heavier than ever before. 1t
is therefore most gratifying that the
banks throughout the country have been
placing themselves in a position to han
die autumn requirements and possible
Treasury financing with a minimum
amount OF difficulty.
Bank clearings show decline as com
pared with this time in 1909, but the
falling off Is due chiefly to the reduction
in the volume OF business in the specu-
lative markets. the loss in New York
clearings last week for instance
amounting TO "a per cent, against a total
loss for all cities or 10 per cent. Outside
CT New York, Chicago. Boston and st.
Louis gains as a rule are reported. Raii-
road gross earnings continue to improve
and net results are not so unfavorabie as
was recently predicted. Freight is NOV
ing in larger volume in all parts OF the
country an indication OF which is found
in a decrease in the number of idle cars
IN the last two weeks OF more than 2S
per cent, the largest reduction In the
surplus heing supplied by the Middle
West The general business situation
shows irregulerity. and while actual or
ders for future requirements are light in
most lines, consumers current needs are
large enough to make the volume of day
TO day trade imposing, as expressed IN