New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-01
HONEY AND BUSINESS.


opinion in the financial community over
the probable course of Stock Exchange
prices in the immediate future. there
appears to be no doubt in the minds of
our bankers that the prevailing quota
ton level and fundamental conditions
governing the actual worth Of American
securities warrant buying for invest
naent account. European capital has
been moving into our first class stocks
in recent days. but the home investment
demand is inactive, specially for rail-
way mortgage issues which now return
much better income than ordinarily
can be obtained on this class OF IN
vestments. The speculative situation
has been strengthened by the elimina-
heavy reduction in an undesirable class
of loans. but III various quarters it is
thought that a further REIMBURSEMENT of
speculative accounts must take place
before sustained Improvement in prices
need be looked for. Banking interests
saved q situation last week that ap-
Feared to be headed toward a stock
D long line Of stocks from financially
crippled wouId-be railroad fnanciers
they brought 10 a close ambitious
schemes the carrying out of which
would have done more harm than good
to the position of a number of railroad
properties. And the action OF these in
terests served to reassure the business
OF acute nervousness over the price
melting process in the stock market.
Bank reserves at this centre are un-
usually strong for this period Of the
year, and greater caution i'll banking
operations is reported in the South and
West, where in the last twelve months
there has been q heavy overextension
Of loans. Sterling exchange is at q level
that encourages the importation Of gold,
the position OF the sterling market be-
ing one of the best features Of the pres
ent financial situation. The demand
here FOR accommodation is light but
outside Of call loans there is no DISPOSE
ton on the part OF lenders to make con-
cassions in rates. despite the large hold
ings Of the Clearing House institutions,
which in the last three weeks have adj
Vanced their reserve above legal re-
quirements from $500, 300 to SIT, Do
500. Bankers are aVerse TO locking up
their funds through the fail, EXCEPT at
extremely profitable rates, and as
consequence commercial paper ia not
easily negotiated on terms acceptable
to drawers. According 10 current in
dications, New York will be able to draw
geld from abroad in the course OF the
next few months to whatever extent
may be deemed advisable, owing in
large part to the promise Of growing
foreign interest IN our securities. Eng
lands ablest fnancier. Sir Ernest Cas-
sci. is a member Of the syndicate that
restored stability to our stock market
last week. and his participation in the
operation doubtless will serve to widen
the European inquiry for American is
sues.
Reports from trade centres indtCaL5 2
sappointing forward business in some
sections. with, however, no signs of the
depression So freely predicted in Wall
Street Confidence over the future is
more pronounced, and measured by pay
ments through clearing houses and by
gross railway earnings general trade is
bv no means inactive. Compared with
Il year ago. clearings for the week just
closed show a gain OF 5 per cent, well
distributed throughout the country,
while for the third week in July gross
transportation receipts present an in
crease of II per cent, following one of II
per cent in the week before. Net returns
are not as favorable, owing TO heavier
operating costs. Much needed rains
have fallen in crop territory, and, al
though it is likely that both cotton and
corn Will make d less favorable exhibit
in the forthcoming government report,
showing conditions at the close of July,
than was noted i month ago there APP
pears no reason to doubt that the prod
ucts Of the ground viii reach money
value this year as large as IL not larger
than the heavy total of 1908 Better
adVices come from the local dryBoods
market, with especial Improvement noted
In cotton goods following the arrival of
many out -of-toWn buyers. Prices are
tending higher for the good reason that
the price of raw cotton Is dearer than at
any previous time this year. while at
present quotations sellers are receiving