New-York tribune., 1910-10-03
MONEY AND BUSINESS.

MONEY AND BUSINESS.
Business transactions for immediate
needs continue heavy. while on for.
ward commitments trade is inactive.
Some Improvement is reported at dis
tributng centres, due In large part to
Increased marketing of the crops, but
the actual volume of orders is we'll url-
der that reported at this time a year
ago. although the recession is not ao-
Companied by weakness in fundamental
conditions or uneasiness on the part of
manufacturers, jobbers and retailers.
Indeed, there is a we'll defined feeling of
confidence as to the future and belief
in most circles that following the No
vember elections our industries Will
move toward a higher plane of activity.
An indication of coming betterment in
the general situation is found in
larger inquiry for railroad mortgage
issues including actual sales by bank
erS in the last two weeks of upward Of
$50 COO.0OO. of which S7.0OO,00O repre-
sents bonds placed in London; also in
tendency among spectators on the
Stock Exchange to operate on the the
ory that unfavOrable features have been
fully discounted by the difference be-
tween prevailing market prices and
those of year ago. Nevertheless at the
moment the money market does not
warrant an aggressive bull speculation.
|. Bank reserves at this centre have fall
en- from S55,O00,0O0 on August 20 TO
81, ,9S1 $50 at present while in the same
time loans have advanced more than
S1OO.0OO,00O without the accompani-
ment of active speculation in stocks. The
resumption therefore of extended trans
actions for higher prices at this par
ticular period would exert most un-
favorable effect upon the monetary sit
uation, which is still carrying the bur
den of harvest financing. Furthermore,
unless foreign bankers recede from their
position in the matter of refusing cot
ton bills of lading not guaranteed by
American banks our money institutions
here will be under the additional strain
of financing exports after october ii
until the cotton is laid down at European
ports Actual disturbance in money Is
not looked for, but before the end of
the wear there doubtless will be periods
of extremely stiff rates for accOmmoda-
ton. Call money was marked up TO .
per cent last week, and time naturitieS
were distinctly firmer. Discounts abroad
were higher in response to usual autumn
money market requirements, an advance
I'm the official rate being made both by
the Bank of England and the Imperial
Bank of Germany. Commercial paper
offerings are light, with apparently little
nrospect of an increase as long as bank
ers' terms are so unsatisfactory to
drawers.
Heavier shipments of cotton and grain
are depended upon to weaken sterling
exchange, which at present is near the
gold exporting level while dearer money
IN New York should COunterbalance
higher discounts in Europe as an In
fluence on the foreign exchange market.
So far lower prices for grain have not
attracted an active export demand for
wheat and corn, but cotton Is going
abroad in volume, in spite of the ad-
vancing tendency Of quotations. Spec
ulation in cotton futures for bull account
is dangerously heavy for this early
stage of the cotton season, but operators
find i'm reduced estimates of the final
yield, the low supplies in the hands of
summers and the expectation of re-
vival of activity in the cotton goods mar
ket justification for their position. The
government report on cotton will be is
sued to-day. and il is expected to show
a falling off in the figures from those OF
a month ago. Buying of cotton goods
by retailers is restricted. while Jobbers
show no enthusiasm over the outlook FOR
new business in the immediate future,
although in the general drysoods market
some Improvement is recorded. Cotton
mills continue TO curtail. Heavy receipts
OF wheat and n slack cash demand have
carried quotations TO n level We'll under
that prevailing at this time last year.
Conditions in the iron-and steel in
dustry do not warrant the expectation
of an active trade in the course of the
next few weeks, but an encouraging
| feature Of the market that tends to IN
duce confidence as to the future is the
increase In orders for iron for 1911 de-
! livery. AS a rule. however. the chief
! buying in all departments of the iron
and steel trade is for immediate needs,
new business in finished steel lines COM
| ing in at the rate Of between 80 and 30
per cent of capacity. The railroads and
other large consumers are doing little
! on forward commitments, and appear
! content 80 connns their operations - a
hand to mouth basis until the situation