New-York tribune., 1910-11-14
MONEY AND BUSINESS.

An unparalleled yield of corn and
harvest of other crops generally above
the average mean a tremendous expan-
sion in the buying power of this coun-
try and a resultant enlargement of our
industrial activities. The influence OF
our large crops on money and business
will not be felt al once. but in the year
to come it doubtless will be reflected in
progressive mercantile growth through
out the country, unless there should be
nationwide uneasiness over the ultimate
effect on economic questions of last Tues
! days election results. The current vol
une OF business transactions Is made up
in large part of contracts for immediate
wants. future needs receiving little at
tention owing to the prevailing uncer-
tainty regarding the movement of prices
in the next few months and to the course
of action that will be taken by Congress
in its session soon to convene. Season
able weather has helped the retail trade
and in turn has favOrably affected job
bing interests, but measured by bank
clearings the total of present industrial
operations is we'll under that reported
at this time a year ago. Commercial
failures last week showed falling off in
number and amount of liabilities from
the week before and from the same time
in 1909
Wall Streets predicted boom in stocks
did not materialize following the cleo
ton, and from current indications prices
for most securities will go lower before
sustained advance can be brought
about. The market was In an artificial
condition at the end OF October and in
the first week in November. and as the
so-called public did not consider the
Democratic victory a good bull argu-
ment no one appeared to buy stocks on
Wednesday morning except banking in
terests. who were willing to relieve weak
spectators of their holdings at conces-
sions Of 1 to 3 points. At the close of
the week the general stock market
showed declines of from 3 to I points
from the ante-election level. Money fac
tors are distinctly opposed to aggressive
speculation in stocks on borrowed funds
and it is not likely that the New York
banks will be willing for the rest of the
year 70 eAlGllU heavy accommodation
against speculative commitments A
moderate proportion Of the Wall Street
loans made in recent weeks has repre-
sented money of individuals who pre-
ferred lending their funds on high grade
collateral rather than put them into
stocks or general business Local bank
reserves are low. The interior is still
%nJ
the prospects of gold imports are not
promising. in spite of declining ten
dency in sterling exchange.
A large supply of commercial paper is
reported in this market. and the compe-
tition to place it is SO active that draw
erS are seldom able to obtain q lower
rate than 6 per cent AS the banks AL
ready have made heavy loans there is
not large supply of money available
against bills, and the fact that bank
loans are in excess of deposits to a con-
siderable extent suggests that heavy
liquidation Of stocks carried on bor-
roWed funds will he necessary before
lower rates on mercantile paper may
be expected. Although the Bank of
England has strengthened its position
open market discounts at the British
capital are higher while at all foreign
centres monetary conditions reflect an
active demand for accommodation.
With large foreign government loans
pending, it is not likely that London will
permit gold TO be shipped to the United
States in any volume. The textile trades
are quiet. Manufacturing conditions
warrant higher prices for cotton goods
and consumers are beginning to realize
that lower quotations, even with de-
cline in the price Of raw material. are
improbable. The cost of production and
prices quoted to buyers are out of pro-
portion, but gradual readiustment is
under way, with the current market for
all goods exhibiting an advancing ten
dency. Buying of woollen goods is more
active than il has recently been, and
much better sentiment prevails at mill
centres. In the general drygoods mar
ket, however, less optimism is noted
than was shown before the election. ow-
ing to the idea of the unsettling effect
upon business of possible tariff agita-
ton.
Speculation in cotton futures is mod
erately active, traders, a rule. favor
ing the bull side. owing TO unofficial re-
vised figures this years crop, which
have offset a report showing 1889 9S3
bales ginned to November /, compared
with 7,O17S49 bales III the same time
last year. The price of wheat is slight
ly higher as a consequence of technical
market conditions. The worlds visible
supply of wheat is 55OO0,000 bushels
larger than il was year ago,
and In trade circles a lower range
of quotations is looked for; also
for corn and oats. Tho prices of
the more important cereals average
about ; per cent below the level report
I'd at this time in 1909. Unified tom
mage of the United States Steel Corpora
tion, as of October 81. while light, rep
resents past conditions, and 1t need not
be taken as a criterion of the future
course of the iron and steel industry.
New business has shown some improve
menI in the last week, and according To