New-York tribune., 1910-03-21
HONEY AND BUSINESS.

Investment demand for new securities
continues fairly active. but actual buy
ing Of old issues Is light in volume. with
little indication Of important improve
ment In the near future. Monetary con-
ditiOns are beginning 20 work against ac-
tive investment markets, though in COM
parisOn with the current price of funds
the return on high grade railway bonds
and stocks is satisfactory TO buyers who
Lase their operations on the character Of
investments rather than on the amount
Oi income involved. Speculation in
stocks is quiet. and in view of the grow
ing strength OF money at home and
abroad il does not appear probable that
substantial advances from prevailing
quotations will be recorded in the course
OF the next few weeks. although the out
look does not encourage the idea of a re-
adjustment OF prices 20 a materially
lower level. Stock market interests who
are well informed on conditions in the
business world do not hesitate 10 advise
the purchase of first class shares for
permanent investment account. but they
hesitate 10 suggest speculative transac-
tiOns on the basis Of borrowed money
owing 10 the increasing demand for ac-
commOdatiOn I'm mercantile circles and
to the highly extended loans OF the banks
throughout the country.
Time money rates are higher for short
and long maturities. while a firmer ten
deny is reported in the call department.
London open market discounts have been
advanced, and in order 10 check the
drain upon its gold holdings the Bank of
England has raised its minimum rate 10
1 per cent, an abnormal quotation for
this time OF the year. but IN the present
instance wholly Justified by existing con-
ditiOns. The action OF the governors Of
the bank Is not directed against New
York. and il IS not believed that the
Bank of England is endeavOring to draw
gold from the United States. though il is
conceivable that factors in the foreign
exchange market may lead to shipments
% the metal from this country. our
position in foreign trade Is unfavora ble.
For the month Of February official fig
uTes show an excess of imports OF yner-
Chandise over exports for the first time
in any month since 1895 and IL il were
not for offerings Of exchange against
European purchases Of American seen
rites we would now be sending gold
abroad. There is good demand ON this
centre for currency for the West and
South in connection with the prepara-
tiOns for active farm operations. while
the general mercantile inquiry is inn
proving. "A reflection Of which is found in
greater activity in the CONNIE rciaI paper
market
General trade conditions are sound and
the volume Of business in most par,s Of
the country is large Bank cIearings for
the last week show an increase of ~ Dar
cent over the same time in 1909 while
railroad earnings for the first week in
March present gain Of more than I'D
per cent, as compared with the CORE
spending period year ago. No better
indication OF the progress Of Industrial
conditions can be found than in the
growth Of payments through clearing
houses and expanding transportation
company receipts. Merchandise Is mOv-
ing freely. with wholesale distribution
unusually active for this season Of the
year. the cotton goods market alone
showing 4 tendency toward curtaiIment.
/ High prices for raw materials. both I'm
cotton and wool. naturally induce nhl
/ owners 10 adopt most conservative pol
/ icy, but buyers nevertheless exhibit a
disposition 10 operate at figures quoted
/ by the manufacturers. who believe that
their refusal 20 make concessions has "A;
/ last convinced customers that lower
levels are out OF the question. especially
as In many lines quotations are under
the cost Of production JObbers report
a steady demand for spring and early
summer merchandise. Export trade in
/ textiles with the Far Fast is reyiving.
Speculation In cotton futures l. mod
eTately active az higher prices. Increased
trade In Manchester and better export
demand have encouraged bull manipula-
tlOn. while declining stocks here and evil
dence Of Improvement in the foreign COT
ton goods markets have contributed Ia