New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-07
MONEY And BUSINESS.

ment capital 10 the market. and as the
weakness in quotations is not based on
conditions affecting intrinsic values an
increasing home and foreign demand for
high grade stocks and bonds is looked
for in financial circles. The leading rail-
road shares show an average price Of
1880, as compared with 134.46, the high
point Of 1909, while the average for the
chief industrials is 1910, decline Of
l9.el from the best level recorded last
year. Liquidation based on unfounded
fears regarding the effect OF President
Taft's policies respecting government
control of corporations, aggressive bear
attacks in all departments OF the mar
ket and the withdrawal Of support by
prominent banking interests for the pur-
pose Of giving the administration an
object lesson" and incidentally TO enable
the purchase OF securities at bargain
figures. have brought about disturbance
on the Stock Exchange, but the losses
suffered have not weakened fundamental
factors governing our industries. Other
influences, such as the agitation through
out the country against high costs OF liy-
ing and uneasiness In the Street over
coming Supreme Court decisions in the
government suits against the American
Tobacco Company and the Standard Oil
Company, have served 10 encourage bear
activity in the Street, though as far as
can be learned they have not upset conf
dence in the business world.
Conditions in the stock market have
rI1a 10 MI
loans. and az a consequence Of the large
receipts OF currency from the interior in
recent weeks the banks hold an amount
OF idle money larger than at any time
since the early part of last summer.
There is little inquiry at the moment for
short time nlaturities. owing TO the fact
that call money can be had at per cent
or less, and about the only activity in
time funds is found in twelve months
loans. which are quoted a. AZ per cent.
The plethora of money at this centre
should soon be reflected in better de-
mand for bonds that are good on all oc-
casions Commercial paper Is being
drawn in large volume, but few bills can
be placed as low as Al per cent. and in
this respect rates are wholly out OF line
with those in the collateral loan market.
In view Of the current situation in the
market for call and time money and the
Willingness OF the banks to buy good
paper it is reasonable to look for lower
quotations for high class commercial Of
ferngs. Since January the local banks
have gained more than $34,oo0,00o on
their opera lions with the interior, the
movement representing the strengthen
ing Of out-of-toWn balances at this CEN
ire bat receipts are now declining, and
If spring business develops throughout
the country along present Indicated
channels there viii be a material con-
traction in New York bank reserves in
the course Of the next few months.
General business movements continue
TO show some irregularity, but based on
the reports received from trade circles
in all parts OF the United States the in
dustrial situation is sound, with no indi-
cation that the unsettlement in the
financial markets foreshadows CONNER
cial depression. The tremendous &C
ti,itv in industrial quarters of several
months ago, however. has been succeeded
by uuieter tendency, but that the vol
uu1e OF trade is large is shown by the
heavy paynaents through clearing houses
and the gains in gross earnings Of the
railroads. Adverse weather in the West
has interfered to some extent with rail
way traffic and has increased operating
costs: nevertheless, returns from the
larger number of roads show salts
factory results and the ability OF the
companies TO spend increased sums on
hetterments without endangering diyi-
dends. Bank clearings last week showed
a gain of Is per cent over the same time
last year. all cities presenting improve
ment except Chicago, Cincinnati and
Pittsburg. where small losses were re-
corded, the falling off at these points
being due to healthy reaction in the
iron and steel trade. Current consump-
tiGn Of iron and steel is light only in
comparison with the enormous buying in
the last two months OF the year. Steel
manufacturers report increasing speci-
fications, and they predict heavy buy
ing movement will develop IN the latter
mart of the current month.
Railroad companies are beginning to
Mace larger orders for rails and equip
r7ent. and the attitude Of the railway
managers in the matter of preparing for
future business does not bear out the
Dessimistic talk heard in Wall Street
circles regarding the outlook for our in
dustries. And the same thing may be
said Of the feeling among business men
in general. Close prices for fall delivery
are being named by the largest sellers
If cotton and woollen fabrics. The vol
,ne of business at quotations asked is
large. especially in we'll known goods Of
quality. The general drygoods market
is ouiet. with more active trade re-
Dorted By the tobbiug houses and every
indication Of the evelopment of grow
ing orders in the near future. Specula-
ton in cotton futures Is running along
In 2 conservative manner at the present
time on an irregular movement OF prices
that show little change from day TO day.
while a similar situation prevails in the
eDot market Receipts of cotton At