New-York tribune., 1910-11-21
MONEY AND BUSINESS


markets than to contraction in our IN
dustrial activities. clearings in New
York and Boston, for instance, showing
a reduction in the last week, while gains
are reported for Philadelphia Baltimore
Chicago, St. Louis and New Orleans.
High costs of labor and material are
reflected in smaller business profits. but
! there is now some reason for the belief
that a period Of general price readjust-
ment is developing, involving cheaper
cost of living and larger net income
on business operations, both for corpora
tions and individuals. Distribution OF
goods at retail is more active than it has
recently been, particularly in season.
able lines of hardware and clothing. with
q good demand from the agricultural
/ section of the country, where large crops
! have been gathered on a profitable
money basis. In many instances farmers
are holding back their cotton and grain
in the hope of better prices, but current
underlying conditions do not appear TO
| favor the idea Of sustained advances
from prevailing levels.
| Trading in stocks is dull. but the mar
| ket shows a strong undertOne that sug-
| gests to many operators determination
on the part Of the large financial inter
| ests to maintain prices at levels high
| enough to make offerings of new securi-
| ties issues more attractive to home and
! foreign buyers. A better demand is
noted for our high grade bonds, and
/ foreigners are more disposed to place
! their funds in American investments
| Demand for new capital by our corpo-
rations promises to become an impor-
tant factor in the financial markets in
/ the next twelve months, for the good
! reason that the railroads and many
/ industrial concerns must have add
tionaI funds IN order to maintain their
physical efficiency and to provide for the
requirements of a growing population.
Hence the fact that monetary Condi-
| tions here and abroad are beginning 70
| show marked improvement encourage
| the idea that long deferred inquiries
for money from our corporations will
/ soon develop into sales Of first class cap
ital issues. Commercial paper, however.
| is still quoted at stiff figures. A mate
rial decline has taken place IN call loans
/ and a fair concession in time mat-Iri-
ties Is reported. The falling off in the
stock market demand for accommoda-
ton and the relaxation in the inquiry
at the interior for New York funds have
been effective in lowering loan quota
tions. but the present position of the
banks is not sufficiently strong to re
move the danger Of higher rates In
! December
Heavy shipments of cotton and in
creased exports Of manufactures in the
last two months have changed the bal
ance of trade in favor of this country,
and have been effective in strengthening
our position in the sterling exchange
market, without, however, warranting
the expectation OF imports of gold in the
immediate future. It is conceivable,
however. that in the event of growing
merchandise exports and falling i'm
ports, which appears probable. the next
few months will give us a credit balance
large enough to make New York a most
important factor in the international
money market. The record Of foreign
trade in September and October, show
ing an excess of exports over i'm ports to
the value of S135. 176. 4334 against a
deficit of d little more than S1,O00,000
from January l to September I. sup
plies a most effective argument for the
confidence that is noted in banking quar-
ters over the future of money and bust
ness in the United States. Exports of
in Hha6 ItJar rinT Of
more than So 100000 Demand for cot
ton goods is not active at the moment
except for staple prints. which jobbers
are buying in volume to cover spring
needs, but prices are firm. with no indi-
cation of concessions for the rest Of the
cotton season. To October 81 there were
ginned 1,340, 900 bales of cotton from this
years crop, and Of this amount only
349S00O bales have come into sight, |
which, of course, indicates a belief on
the part of the planters that better
prices viii be secured by holding the |
staple.
Speculation in cotton futures is not |
heavy and prices are somewhat lower for |
the various options. the movement, how
ever, failing TO shake the belief Of both |
mill men and bull spectators that moth |
ing under a 14-cent market will prevail |
in the months to come, even If the total |
harvest has been underestimated. Sup |
plies OF wheat are accommodating and ex |
port takings are light. while the foreign |
inquiry for our corn is more active, |
shipments in October showing gain OF |
more than 1.0OO,0 900 bushels over the |
same month last year, against decline |
Of almost 60 per cent in the outward |
movement of wheat. Consumers OF pig |
iron and finished steel are beginning to |
buy more freely Prices for pig iron are |
slightly higher. From the point of view |
Of new business for finished steel ma
terials the last week was the best that |
the manufacturers have enjoyed IN re-
cent months, especially in rails and
structural supplies, orders for rails for
1911 delivery aggregatinG $1,000 tons,
while estimates were made of a business
f GOO. 900 tons in the course OF the next |
few weeks. The foreign demand for
American copper is heavy and local