New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-02
HO9EY And BUSINESS.

modities also is in the direction of
cheaper figures. Sentiment in Wall
street is more pessimistic than is var
| industries or by the outlook for the
course of business the rest Of the
| year, but the reaction in stocks. due to
speculative liquidation. and the irregu-
! larity in various lines of trade, due to
! high prices end the process OF correct
| ing an abnormal situation, will eliminate
| weak spots and in the end prove bene-
| fetal to the country at large, Basic con-
dittons are sound, and unless there
should be widespread injury TO our
crops at a, critical period in their growth
| the current year should measure we'll
up to past years of industrial prosper
| ity. Current crop prospects are favor
able, in spite OF recent adverse weather
| in certain sections of the agricultural
community. Damage 10 cotton and
wheat has been grossly exaggerated.
and although the recent cold wave in
the South has caused q setback On the
cotton plantations in small localities
there is ample time 70 recover losses
sustained by replantins, which is now
actively under way. The crop killers"
have made the most of unfaVorable de-
velopments. but according to trust
worthy advices from the farms there
need at this time he no uneasiness over
the WELD of this years harvests
The effect on sentiment in business cir
cIes Of adverse developments has teen
out of proportion to that warranted by
their actual significance. Present fac
tors faYoring reaction in our markets
are different from those that spell in
duStrial disaster: and nothing now
be found in underlying conditions that
points to anything more than whole
some readtustment Reports from pro
ducing centres do not bear out the ap-
prehension that apparently is felt in
Wall Street over the future of trade
In jobbing and wholesale lines a slowing
down from recent activity is noted, but
measured by bank clearings and rail-
road earnings the general movement of
merchandise is sti.l in excess of that
reported at this time a year ago. when,
it may be recalled, the country's bust
ness showed marked expansion as COM
pared with that of the preceding year.
In New York bank clearings have de-
clined as a consequence Of conditions in
the speculative markets, but at most
other points Improvement is recorded
with total net gain last week for all
cities of 3 per cent over the correspond
ing week in 1909. Gross earnings of the
+-an n nil Ia ~
in the case OF many roads the increased
cost of materials and wages is re-
f1ected in a reduction in net returns.
Money rates are hrmer and indications
do not suggest the development of easy
quotations for a long time to como. Lo-
cal bank reserves, which have been
weakened by gold exports. payments TO
tho Sub-Treasury and demands Incl
dent to the deliveries of ; Y cotton,
arc now at the low level Of the year.
the contraction in cash and surplus hold
ings compelling the Clearing House in
sttutions to call loans against speculd-
tive commitments. Much OF the selling
or stocks represents the higher price
for call funds. but there is reported
nevertheless genuine liquidation by per-
sons who have been compelled to raise
ready cash and by interests which be-
Eeve that opportunities will develop for
the purchase OF securities at more at
tractiYe figures. The investment de-
mand is inactive. The public buying
power evidently is temporarily OK
hausted, yet in addition to the excessive
issue of new securities since the begin
ming Of the year various corporations
are preparing to make further offerings
in a thoroughly glutted market. Time
money is somewhat higher than was re-
ported week ago. and although dis
counts on commercial paper are hrmer
the drawing Of bills is light owing TO
the unWiIlingneS5 Of merchants to load
up with merchandise at current prices.
Unsettled conditions in the cotton mar
ket naturally check demand in the textile
trade, and while sales Of drygoods are
heavier than had been reported for sew
eral weeks, they are of the hand-to-
mouth variety.
Curtailment in pig iron production |
promises TO bring about better condi- |
tons in the iron market. which Is by no |
means in the state of depression report |
ed In speculative quarters. The pig iron |
market reflects the overproduction of |
iron in 1909 and does not foreshadow |
adverse developments in the iron and |
steel industry, which. as a matter OF
fact, Is showing excellent results az
with past years Of activity /
In the metal trades. Tho United States |
Steel Corporation has shown its conf |
denco in tho outlook by placing its |
stock on a D per cent dividend /
basis. and While itg report OF earnings |
for the first quarter of the year exhibits
q slight falling off in net receipts from
the last quarter 81 1909 untitled orders
on It's books are heavy. with a satisfac-
tory amount of new business reported
4 pril orders were not up 10 those Of
March, which showed a large gain over
February and January. but reports re
ceived ar the close OF the last weak in