New-York tribune., 1910-01-10
MONEY AND BUSINESS.


weeks stock market was due in large
part to higher rates for money and TO
the realization of profits in securities
that have enjoyed phenomenal advances
in the last twelve months Some appre-
hension was felt in the financial COM
munity over the Presidents attltuoe
toward the corporations, and SPECTATORS
offered stocks down on the theory tnat
an active selling movement would de-
velop following the publication of Mr..
Tafts recommendations affecting rail-
way and industrial companies; but oper-
ations Of this character failed to mate
rialize owing to the fact that there was
nothing in the message Of nature TO IN
jure American investment interests IN
deed, the Presidents views favored IN
vestors. Honestly conducted corpora
tions have nothing to fear from ieg'sia-
ton along the lines proposed. investors
are not active In the securities market
at the moment, and the belief that the
current year will be a period OF hlsh
money rates tends to discourage invest
ment buying at prevailing prices. on the
theory that better opportunities VIII De
presented as consequences OF an ex-
pected natural readjustment of quota
tions to the higher rates of interest.
Call money went as high as II per
cent in the first week of the new year.
and though rates eased Off materially
before the close indications pointed 10
firm loan quotations for months to come.
The advance in money attracted large
amount of out-of- town funds to this
centre, and the gain by the local banks
of more than ss.o0o.o0o on their opera.
tions with the interior compared favor
ably with the weekly totals received In
1908, when business depression sent cur
rency to New York for employment in
the loan market. Time money is in fair
demand and a somewhat better supply
of commercial paper is reported ihe
requirements of merchants in the loan
market promise to be heavy in the course
of the first half of the year. and the
probability of a record breaking general
business at good profits insures borrow
ers ready accommodation at the banks.
Our foreign trade balance is unsatisfac-
tory and London continues to settle its
obligations In South America at the ex-
pense of the New York market as re-
f1ected in further engagements or golu
for. Brazil and Argentina. Exports OF
both cotton and breadstuffs are light IN
volume as compared with former years,
though the high prices at which cotton
is being sold offsets the shrinkage III the
volume of shipments. Imports of mer-
chandse are heavy, and at the port OF
New York foreign .drygoods- received III
the last twelve months show a. gain TO
the value of $780, 715,424 over 1908
Trade movements have been somewhat
lighter in recent days, owing to adverse
weather conditions, but in all lines op-
timism prevails and expectations OF IN
creasing demands for goods are general.
Local retail operations have been helped
by an inquiry for seasonable merchan-
disc, while wholesale departments are
quiet. though expectant of larger orders
as soon as statesmen reach their fields OF
activity. Commodity prices remain high,
and the level Is above any ever before
known heavy costs, however, falling
to affect domestic demands from con-
sumers Foreign buying here, neverthe-
less. has been reduced as consequence
of the advanced quotations for staple
products The cotton goods market
shows a fair movement at the higher
prices, and the mills and jobbers are GO
ing ahead with confidence, in the belief
that 915-cent cotton is likely to hold until
the new crop comes into sight, curtaii-
ment of operations a result of the
price of the raw material being confined
sc rie%I.
Speculative liquidation of cotton futures
has lowered quotations to a small extent,
and buying by the mills has been feat
ure in recent days. Print cloths at Fall
River have been advanced.
No fundamental change is reported in
the market for breadstuffs. Prices are
strong and higher than at the close of |
1909, the advance being based on hullish
news from Argentina and strong spot
quotations. A better milling demand is
reported in the Northwest, and farmers
appear to be holding back supplies iii
the expectation that better figures will
be offered later in the season, despite the
fact that there is no sign of improve
ment In the export trade but an increase
in the worlds visible supply in tire last
week of more than six hundred thousand
bushels. Indications point to large
crops in Russia, India and Australia.
The agricultural community is an ac-
tive buyer of farm implements. and is
becoming more of factor in the iron
and steel market, which continues strong
and active. An advance of so cents in
nom -Bessemer ores has had no adverse
effect upon the volume of business and
buying in the last few days has been
heavy. In the month of December an
other high record for pig iron produc-
ton was established, with 2,635, $50 tons,
making the total output for the year
23.393,1S4 tons, comparing with 1886
O1S in 1908 and 25.7S1 ,361 in 1907, the
banner year. If the current rate of pro-
duction is maintained throughnut 1910