New-York tribune., 1910-05-23
MONEY AND BUSINESS.


prevailing quotations. the inquiry for in
vestment account is inactive, owing to
scarcity of capital available for use in
the investment markets. The supply of
securities is greater than the demand,
and corporations REQUIRING new funds
for capital expenditures are compelled
to seek the accommodation in France,
where cash holdings are enormous and
ready to be put out at a price that nets
the Paris banker a heavy profit. Abb
sence Of speculative and investment buy
ing in the local market breeds pessimism
in many quarters over the outlook for
the country's industries, but in spite of
the depression of spirits in the spec
ulative community general business
throughout the United States is increas-
ing and the whole industrial Situation is
more encoura ging that it has been in
many weeks. If the years harvests come
up to present expectations, based upon
existing conditions on the farms, there
will be no lack of prosperity in this
country. Bank clearings last week
showed a net decline from the same time
a year ago. the loss, however, being con-
fined to New York and Boston and rep
resenting the inactivity Of speculation
rather than weakened trade conditions.
Exhaustive inquiries made by Wall
Street bankers of their correspondents in
various parts OF the country regarding
present trade conditions and factors
likely to have q bearing upon the future
have brought forth satisfactory replies,
the only reports OF an unfavorable nature
being those relating to the overspecula-
tion in land and irrigation projects
Loans Of the Western and Southern
banks appear to be unduly extended, and
the local institutions, doubtless with a
view of possible adverse Developments
are strengthening their reserves and are
not locking up their liquid resources, ex-
cept in loans secured by the best sort of
stock market collateral. The intense
dulness in stock speculation is reflected
in an easier tone in call money rates, but
quotations, nevertheless, are higher than
they were earlier in the season, when re-
serves were heavier than they are at
present. The demand for commercial
paper at this centre is light, while dis
count rates are well above the rates on
time money, even the choicest offerings
commanding Ia per cent for six months
single name bills, against 4 TO AZ per
cent for six months time maturitics.
Sterling exchange again is near the
gold exporting point, as a consequence
of a scarcity of commercial and security
bills, of higher open market discounts In
London and the decision of the Bank OF
England to maintain it's 4 per cent mini
mum rate in the face of a proportion of
reserve to liability unusually high for
| this period of the year. Our export trade
shows some Improvement. but we can
not hope for material expansion until
general price levels in this country de-
cline to a basis that will make our mar
kets attractive TO foreign buyers. AL
though commodity prices appear to be
moving in the direction of lower range.
our chief dependence against resun1p-
! tion of an outward movement of gold
for the present, at least, must come from
sales of American securities abroad. So
far these sales have not been heavy, but
| it is understood that in the current week
negotiations for the placing of large
amounts Of new American railroad
bonds with Paris bankers will be brought
to a successful conclusion
A more comprehensive scheme for cur
ton mills has been planned for the sum-
mer months. owing to the unsatisfactory
price situation. which continues to be re-
| facted in the hand to.ll1outh trading by
| jobbers in cotton goods. Nevertheless,
| the tone of the textile markets is
stronger than it was a week ago. Oper-
ations for fall requirements are not ex-
tensive, but it is considered probable
| that after the publication OF the gov
ernment's June crop report buyers will
be able to go ahead with some idea OF
the future. Selling pressure against all
cotton options has been heavy in recent
days. with the spot month falling 50 a
bale below the high point of a week ago,
while in the wheat market the December
option has declined under 81 bushel,
against 81 % at this period in 1909. All
months are lower than the levels re-
ported last year, the explanation for the
| difference in prices belng 1ounu III the
| fact that the mills and market are well
stocked with the old crop at time Of
improving prospects for this years har-
vests
In the market for finished steel the
largest consumers show more disposi-
! ton to place orders, and it is not inn
probable that many railroads will soon
become active buyers of rails. structural
| materials and rolling stock With the
| funds received from the sale of their
mortgage issues to Europe. AS 1t is. the
steel mills have enough business on their
books TO keep them busy for several
| months to come. Trade authorities be-
| lieve that the decline in pig iron prices
has run its course and that there will
be no material readjustment in quota
| tions for finished steel products unless
conditions in the industry should de-
yelop contrary to present indications
and explorations. The lull In the steel
trade during the last few weeks has af-
| fordsd an opportunity for the blowing
cut of oyerwcrked blast furnaces. and