New-York tribune., 1910-07-25
MONEY AND BUSINESS.

Exchange are light in Eolulne, Willie
speculative transactions have fallen to
the small totals that usually mark the
course of midsummer trading. There is
no evidence Of important liquidation and
no indication of resumption or the
heavy selling that accompanied the deal
ings of recent weeks; but. on the other
hand. there is no disposition on the part
of the substantial Wall Street interests
| or the general public to make extended
new commitments for higher prices
pending more definite ideas regarding
the outcome of the years harVests
Conservative bankers express no appre-
henson over the future of money ana
| business though they believe the varl-
GUS uncertainties of the situation de-
mand extreme caution at this time in all
transactions and the strengthening OF
hank accounts. even at the expense Of
the feeting pleasures that are derived
from the pursuit of short lived happl-
ness based upon borrowed money, as, for
instance, the purchase of automobiles on
discounted notes The banks at this
centre are preparing for heavy demands
upon their resources in connection with
the financing of the crops and autumn
trade requirements, and the fact that 1n-
terror institutions in many cases are
loaned up to their capacity accentuates
the probability OF heavier shipments of
currency from New York in the autumn
than out-of-town bankers are willing to
admit.
According 70 the compilation by the
Controller Of the Currency of bank con-
ditions in this country under his call of
June 80, curtailment of loans outside OF
New York has not been as successful as
was expected. Compared with year
a. go the local national banks have re-
duced their loans upward of SS400o,0oo,
but as the statement shows for all banks
in the United States a net increase in
| loans of S394,2156I0 the Institutions
outside this city have added approx
mately S47S, 100000 to the loan account
in the year. The figures of June 30 show
some Improvement in reserve over the
exhibit of the March call, especially IN
| the reserve cities of New York, Chicago
and St Louis. and it is quite probable
that since the date of the Controllers
last call conditions have been strength
ened in all parts of the country, the
Clearing House banks at this centre.
| for instance, having reduced loans in
the last three weeks upward of S4o,-
| 0OO0QG. and added in the same time
more than $3S,OO0,OOO to the reserve
above legal requirements. Call money
! here is easy and inactive, while time
funds are a shade under the level Of
week ago. Commercial paper has been
| benefited to a small extent by the easier
| tone in collateral loans. Cheaper money
here and higher discounts in London are
reflected in frmer sterling exchange
rates in New York.
| Commercial agencies say that the
business situation is "spotty," meaning
! that il has points of weakness and
points of strength. with the general ten
| dency toward irregularity. There is no
| evidence Of coming acute depression,
! there are no elements of a panic in cur
! rent conditions. and, so far as reports
! from various centres may be relied upon,
there is nothing upon which one may
base A pessmjstic forecast The weak
| est feature is the overextension of credit
| at interior points IHlS Iic"tNtir 10 iCN-
! ognized by our bankers, and steps have
been taken since the last bank call to
bring about liquidation where hquida
| ton is needed. The stock market has
| been through a long period of liquida-
| ton, but a similar movement is de-
manded in many other lines In the cot
! ton goods trade buyers are beginning to
! So,,1a n in the market and
apparently the notion that prices will go
! TO a lower level before the new crop ar
rives has been abandoned. Based on the
quotation for raw cotton and the cost Of
| production, cheaper schedules than those
| now prevailing appear out of the ques-
| ton And unless there should be much
more than a normal crop this year it is
| difficult to conceive of material price re-
| ductions. If any, with the new crop.
| owing to the increasing needs of con-
sumers at home and abroad. Something
| of a squeeze of the shorts in July cotton
! has taken place. and according to care
ful market observers, the position of the
| bears in the August option is still more
| dangerous, due to the scarcity of cotton
| available for delivery and the poor pros
! poets of movement of the new crop
| from Southwest Texas in volume large
| enough to help the speculative situation.
| As whole, the textile trade shows i'm
| provement. Cotton crop news is more
| encouraging in the sense that fewer
! complaints are heard from sections re-
| Gently visited by an excess Of moisture.
| but from present indications the harvest
| will be under the estimates made earlier
! in the season. Speculation in wheat is
| active, with prices well above the level
of a week ago. There has been no i'm
! provement in spring wheat conditions,
! but winter wheat Is yielding a large
| harvest and ia being rushed to market
| to take advantage of current prices,
| while reports from the corn belt as a rule
| are satisfactory and with favorable
| weather in August 3 large yield viii be
! made. In the iron and steel industry
| lower prices have brought in business
| that would not have been placed If con
cessions had not been granted although
! there has not been an increase i'll av-
erage orders for all classes of steel
| Specifications on contracts for finished
! hut