New-York tribune., 1910-09-05
MnNEY AND RTSINESE.

dtcations do not suggest the deVeiop-
nent in the near future of an active H.
ouirv for stocks and bonds. in spite OF
the low prices prevailing Whlie there
are various uncertainties in the general
situation there is nothing In fundanneii'ai
conditions that warrants uneaslness OH
the part of holders Of our securltles' ilol
Is there anything in the OUTLOOK as iai
as one may see, that affords real req
son for declining price levels. II "ouio
seem as If stock market quotations hao
discounted possible unfavorable deVel-
opments, yet there are many persons VINO
have made up their minds tnat oettei
opportunities to secure high class III
vestn1ents will be presented later III tiie
season. In speculating on the ruture oi
prices it should be borne in NINA tha'
as a. consequence of the long per1oo oi
Iiouidation. by which stocks have passed
from, weak to strong hands, the market
is now in a position to respond at once
to favorable happenings At the mo-
n1ent speculative and investment pur-
chases are held in check by consldera-
tions based upon politics and the rall-
road rate controversy. the latter factor
being especially to the fore IN money
and business circles, owing to the cur
rent large falling off in net earnings by
our prominent transportation companies
in the face of expanding gross receipts.
Most railroads evidently are unable to
meet their increased operating costs
without showing a large decline IN net
income from a year ago. and the IacI
that such companies as the Pennsyl-
vania, the New York Central ana the
Union Pacific present dtscouraglns re-
ports for July in this respect naturally
attracts uncommon interest to the pos
sibility Of dividend reductions IN the
event Of a decision against the railroads
In their application for Endorsement or
proposed higher freight rate schedules
by the Interstate Commerce COMMISSION
Our larger railroad companies could go
through period of heavy contraction
in net earnings and still pay dlV1denos
at current rates, but the smaller roaos
would not fare so well. Gross earnings
are increa sing and more cars are in use
than recently reported. All indications
fall that must be conducted at operat-
ing costs higher than a any preceding
time in the history Of the American rail-
roads. And the roads are not in a posi-
ton to practise further economies except
at the expense of the physical cond1t1on
of their properties and the convenience
of the shippers and the travelling public.
M evidence of an increased local de-
nand for accommodation is noted in the
loan market, and rates for call ana llf11e
maturities show practically no chahse'
notwithstanding heavy shipments OF
currency to the interior. Our banks are
so strong in resources that II Is NOT
nrobahle that the outward movement or
money will cause any disturbance here.
although later in the autumn hlsher
quotations for the use Of funds are
looked for Borrowers who have good
collateral experience no difficulty in
securing accommodation, but the banks
are not disposed to lock up large sums
on new loans for long periods, particu-
Ior,1, Il, view of the fact that the United
States is not in a position to draw gold
from Europe. Bills against exports OF
will not arrive in volume
heavy enough to attract the yellow
metal. for the good reason that we snail
not have a large surplus of grain or cot
ton available for export at period
when we are in debt to Europe Matur-
ing finance bills must be met, and al
though returning travellers from Europe
talk about growing interest abroad In
orr securities. there is no sign in the
sterling exchange and stock markets OF
actual buying for foreign account
The spindles Of the world have been
a adversely affected for months by the
small cotton crop in the cotton year just
ended. amounting to only lo.ol6,o1Z
bales. against 13,S17.516 bales in the
wear before and It is quite likely that
manufact of cotton goods will con-
tinue their curtailment policy until the
nrire Of the raw material declines or
consumers are willing to adjust their
ideas to higher prices. Supplies OF goods
on the shelves have fallen so low that
more buyers are now in the market. and
a greater disposition to accept the
theory that cotton will rule at strong
figures for months to come is reported.
August cotton touched 90 cents last
week. while neither the new crop op-
tions nor statistical and harvest condi-
tions offered any encoura cement to op-
orators who are taking the bear side for
a long pull Wheat is moving rapidly to
market and prices are inclined toward
lower levels. Cheap wheat however,
is out of the question. It Is quite evil
dent from the census figures that the
United States must enlarge its farm
acreage and increase the yield on each
acre titled.
Reports received from all parts of the
continue to show mixed trade
with the tendency toward
greater activity as the autumn season
a approaches. Notable improvement is re-
ported in iron and steel. and in trade
centres 1t Is believed that the current
increase In the demand for pig iron
marks the beginning of a big buying
in the metal. In finished
steel specifications are large and the
general inquiry is much heavier than it
was recently. A better distribution
of merchandise is reported in the dry
goods market, with the best business in
the fall jobbing trade in the West As
h,,G In ri ic