New-York tribune., 1910-08-22
HONEY AND BUSINESS.

which IS 1Ound IN Improvement III SUN
market values and IL a slightly better
demand for mortgage securities. Inc
general market for bonds, however, is
quiet and no especial activity is looked
for in the course of the next few weeks,
although bankers are beginning to hnd
less difficulty than was recently expert
enced in placing attractive offerings, as
shown in the quick sale of the state
canal bonds by the house that secured
the issue. The intense pessimism that
prevailed in speculative circles earlier
in the season has disappeared, and In
its place growing appreciation Of the
strength of fundamental conditions and
OF the value to our business interests OF
a. readiustn1ent Of stocks and credit TO
q safer basis is noted. Most tendencles
are toward improvement. but we are
not at a period of the year when ac-
tiyity need be looked for. Marked
changes for the better have taken place
in money conditions throughout the
country. and the betterment in bank
holdings practically precludes the pos
sibility of monetary disturbance in the
autumn.
Preparations to meet a squeeze in
money have been made to such GOOD
purpose that the prospects OF such a
DEVELOPMENT have been reduced to a
minimum. Liquidation has been gong
on in the West, and while as usual the
interior will be compelled to draw on
New York for funds in connection with
crop financing, it now appears probable
that the demand Will not be heavy
enough to bring about anything more
than temporary period of high rates
for accomnoda ton here. The need Of
further gold imports apparently has
PASSED, and in view Of our unfavorable
foreign trade situation additional
amounts Of the precious metal, In the
absence of heavy European buying
movement III our securities, could be OBJ
tanned only in the form Of loan, an
operation which from current indica-
tions Will be wholly unnecessary. Ex-
ports Of merchandise are increasing, but
imports as q. consequence of high prices
and general extravagance in the un1ted
States are stil too large to give us q
trade margin sufficient to attract gold
or to meet our fixed obligations abroad.
There are signs, nevertheless, of q. com
ing lowering Of price levels and Of the
practice of economy that should go far
toward stimulating export trade while
discouraging excessive imports, espe-
cielly of luxurtes which have for months
supplied q large total of the foreign
goods received at our ports
Grain is going forward in increased
volume This country. however, will
not have heavy surplus of grain avail
able for export, though shipments Of
cotton in the new cotton year will prob
ably be in excess of the current year S
record. Supplies Of cotton abroad are
light. Money rates at the principal cen
tres are easier, and despite the fact that
the local banks continue to exercise
great caution in locking UP their funds
in long time loans most maturities
have been lowered, with 415 per cent
the minimum for FIVE and six months
contracts, against 4sl per cent q. week
ago. Commercial paper is inactive.
London discounts are well maintained.
but the Bank of England Is in a strong
position. while the same thing may be
said of the Bank of France. In all parts
of the world monetary conditions have
gained in strength IN recent weeks. q.
factor that will exert an important inf1u-
ence upor general business later IN the
season.
,4ra~ nc
Of trade. the movement being more in
the nature Of g readiustment than the
beginning cf industrial depression. IN
deed. there is no element in the current
situation that warrants the expectation
Of hard times while in general fac
tors governing our industries encourage
ment is found for the belief that the
foundation for marked business eypan-
sion is being laid. Sentiment is more
hopeful Credit is being closely scru-
tinized, but commercial failures are few
in number and light IN liabilities, the
chief complaint of poor business coming
from manufa cturers whose profits have
been reduced through the increased prics
of labor and the high cost of raw mate
rlals buying Tor the 1uturS Is nor
heavy, though in the cotton goods mar
ket conditions show steady improvement
in this respect. Wholesalers. and to
some extent retailers, are beginning to
restock depleted shelves, and as there
is a shortage of goods in first hands the
increased demand from consumers nat
uraIly tends to carry prices to a level
more in proportion to the cost of raw
cotton. Some expansion in orders is re-
ported i'll the local drygoods market
Speculation in cotton is on a moderate
scale OF activity, with lower quotations
reported for the new month options,
which have been sold on better advices
from the plantations.
Large receipts Of wheat at interior
points and an absence of an active mill
for the staple. while the favorable prog
ress OF our greatest crop-corn-is &C
companied by lower figures both for
cash and future deliveries. In the iron
and steel trade current business is of a
hand-to-mouth character, the large con-
sumers of finished steel showing no dis
position to make commitments extend
ing beyond the end of the year Speci-
fications against old contracts are heavy.
but new orders are light, as they gem
orally are at this time Of the year, with