New-York tribune., 1910-12-26
MONEY AND BUSINESS.

| business In the country is smaller thar
was reported at this time year ago, while
from the course Of these exchanges II
recent weeks it may be assumed that Tho
| tendency is toward further contraction
| III our industries. There is, however
nothing III the industrial situation thai
| fcreshadows the development OF acute
depression and nothing in the position
| Of credits that is working toward imam
ciaI disturbance. Healthy readjustmen
is under way, with the reaction proceed
irg along lines that eventually must
strengthen fundamental conditions IN al
markets Demand fer future require
,nents is inactive in the larger nunbe!
of trades, but the extent OF day-to-daS
buying is large enough to suggest nc
great shrinkage in the consuming power
of the people although the character OF
present buying indicates economy In the
matter of luxuries and a disposition on
| the part of buyers to confine purchases te
actual needs The holiday distribution
has been excellent. Railroad earnings
like bank clearings, show reactionary
tendencies, and the absence Of the trans
portatton companies from the market
for iron and steel is an important factor
in the falling off in the output in that
industry.
Demand for money is unusually light
for this period Of the year, and as q
consequences OF the lack of interest III
stock market speculation conducted upon
borrowed funds and the small amount OF
accommodation asked for by mercantile
borrowers bank reserves are growing
with the effect of increasing the sales
of railway mortgage issues. Cheap
money is helping the bond market, aud
if funds accumulate in volume at this
centre in the early part of the new year
as they doubtless will. railroad COM
uanies should be able to finance improve
ments and new construction at reason :
able terms. which in turn will serve 10
help the general business situation. II
the railroads find it possible to raise new
capital Industrial stagnation will not be-
come chronic Time money and call
loans are lower than they were week
ago. and the demand Is so light that
financial institutions are investing their
idle surplus in short term notes and
high grade bonds. while they are more
inclined to buy commercial paper at
rates that a few months ago would not
have been considered. AS low as per
cent has been quoted on the best class
OF drygoods notes. Sterling exchange is
not moving in normal way, weakness
which is not usual for the last month in
the year apparently being due to Hqui-
dation by institutions that accumulated
exchange earlier in 1910 In the expecta-
ton Of selling at high quotations In DE-
cember.
High costs of raw materials leave lit
tie if any margin of profit for the manu-
facturers of cotton goods, and sentiment
in the trade appears to be unanimous
that unless conditions affecting the in
dustry show marked improvement in the
near future further curtailment Of pro-
duction will become imperative. AT the
moment activity in cotton goods is con-
fined to shipments on orders made some
time ago, current forward buying being
represented by extremely small totals as
a result of the deadlock over prices
Selling agencies believe that buyers will
be compelled to pay more If the looms
and spindles are to be kept in motion.
Speculation in cotton futures is quiet.
with prices well maintained. The report
OF the Census Bureau on the amount of
cotton ginned to December Is is better
than was recently reported, and receipts
of the staple at Southern ports are heavy,
but bulls on the market see no reason to
change their position on future months,
owing to their firm belief that world re-
auirements will increase as the season
advances, Exports have been large. and
II is estimated that only small per-
centage of the crop remains to be mar
keted.
Domestic and export cash demand for
wheat is not heavy, although a better
outlook is reported for shipments to
Asia and France. Speculation in options
is inactive at unimportant price changes,
unwillingness among traders to enter the
market being based on the fact that
quotations are from 10 to ID points under
the levels at this time in 1909 and on the
uncertainty about the character of the de-
velopments of the next few months. The
worlds visible supplies amount to up
ward of 57,OO9OO0 bushels more than
the total recorded q year ago. There is
no life in the iron trade, and similar
condition prevails In the market for fin
ished steel products. Consumers Of
foundry iron are not buying, except for
immediate needs. owing to a we'll de-
fired belief that prices will go lower,
while the expectation of cheaper figures
likewise restricts new orders for steel.
Steel works. rolling mills and blast fur
naces report a decided falling Off In their
output in the last two weeks. but conf
dence In the theory Of a change for the
better in the new year is not lacking.
The plants OF the United States Steel
Corporation are now operating on basis
Of about 55 per cent of capacity. COM
pairing with low OF 3S per cent follow
ing the panic Of 1907. and. according 10
the buyer. the percentage of capacity
will continue TO decline until the manu-
facturers either Cooperate on basis II
lower quotations or else esta blish cheaper
nricss through the declaration OF an