The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-08-14
MARKETS TIDE
. VERY FAVORABLE
Output Of Prime Commercial
Paper Indicates Increase in
Business Activity.
BANKS ALSO BEGINNING
TO LOOSEN UP A LITTLE
Will Pour Much of Immense Ac-
cumulated Reserves Into
Channels of Trade.
METALS
WOOL
PRODUCE
BY Leased Wire to The Tribune.

BY Leased Wire to The Tribune.
NEW YORK. Aug. 13.-One of the most
gratifying features OF the week from the
standpoint of legitimate business was
the increasing output of commercial pa
per, and what added to the significance
Of this as indicating trade Improvement
was the diversified character of the notes
offered for discount. The dry goods and
hardware trades. the packing and grain
| elevator interests and the textile mills.
together with miscellaneous smaller in
terests were represented in the paper
that came upon the market. Herein lies
the Importance of this new feature OF the
situation. Nothing like 1t has been wit
messed for months past. and everywhere
there is more hopeful feeling among
merchants and manufacturers as to the
future OF the business of the country
II can De said most emphatically that the
long expected favorable turn IN the tide
has at last been reached and this Is a
matter for general congratulation. Tho
enlarged offerings Of prime mercantile
paper this week were for the purpose OF
supplying present and prospective wants
of merchants and others who are disposed
to make preparations for more active
autumn business.
Another highly important incident OF
the week that bears a close relation to
tnis matter OF commercial paper has been
the loosening up. SO to speak. by proml-
nent banks OF their enormous cash re-
serves. For some time past these banks
have confined their Ioaning operations
chiefly to call money. not doing much IN
the way OF time loans nor OF buying COM
mercial paper. This policy has recently
been changed. especially as paper, and
merchants now find that the New York
banking interests are ready to buy or
discount their paper freely In order to
facilitate the rising tide OF business, Tho
Significance Of this can hardly be over
estimated. as IL means that legitimate
trade is to be furnished with all the CAPT.
ia
lation OF bank reserves at this point for
weeks past is TO be applied TO the pur-
pose OF assisting the country back TO a
period OF prosperity.
The influences back OF this Ioosening up
of capital form an interesting chapter In
the monetary situation. For some time
past New York bank officers have inn
pressed upon banking officers of the CEN
trail reserve cities of the west and middle
west the necessity OF greater liquidation
OF loans In order to be better prepared
for the autumn trade and crop movement,
The wisdom of this has been generally
acknowledged, and small country banks
have been paying Off loans 10 larger in
stituttons and these small banks have no
tilted farmers that they must sell their
products as they are harvested and pay
or their farm mortgages and other OBJ
legations. some OF which have been con-
tracted TO. indulge In eXtravagances.
There has been no effort 10 force drss-
tic liquidation, such as has been wit
messed on the New York stock exchange
u
and gradual payment of debts to banks
In the interior by farmers and others who
have been engaged In land speculation.
The gradual and orderly liquidation now
going on will be completed without any
detriment to trade. and already 1t has
been beneficial, This influence is reflect
ed in the large marketIngs of wheat by
farmers. which have brought the cereals
within the limits of exporters and ship
ping engagements are now being made at
some OF the out ports and at the west
Crop conditions developed this week
have certainly been an incentive to trade.
The government report, indicating total
yield OF spring and winter wheat OF
657 900 bushels and OF corn of 1900.
000.0 900 bushels, inspired confidence in
trade circles. and especially the situation
In corn has improved since the govern
ment statement was issued. There has
eecn some Improvement In cotton, vita
the exception OF portions OF the state of
Texas, where drought still prevails. Con-
siderlng these conditions specifically. it
can he said that the dry goods trade con-
tinues 10 show increasing activity with
an advancing trend to cotton goods. The
boot and shoe industry is also doing bet
ter and 'hc same Is true or the copper
curtalment of production. The steel
trade alone fails TO show any Increase.
Conditions in today's market were TO =
considerable extent repetition OF those
anywhere from half point to TWO full
points, and speculation. after quiet
opening, took on little more activity
There wsLs some evening up of contracts
soon after the opening, under which
reaction ensued, but the greatest strength
Of the day was apparent in the late mar
ket Reading the lIill stocks, the Har-
rman shares. ST. Paul and Pennsylvania
among the railways. and American Smelt-
Ing. United States Steel and Amslsamat-
ed Copper among the industrials were the
features of the day.
The weekly trade reports were OF
more favorable tenor than for long
time past and agreed that mercantile
business was showing perceptible improve
ment Buyers are here In large force and
the weeks distribution OF merchandise
was the largest of the season. Every
where q more hopeful fce.,ng was re-
ported. and this was based upon favor
able weather. improvement in crop con-
iitions and indications OF large harvest
)f corn.
Notwithstanding this. bank c,earings of
he whole country for the week show
decrease from last year OF about l! per
cent but this loss was due largely to
speculation.
Prices OF stocks were greatly inflated
n 1900 and this helped TO swell bank
hearings for that time. For example.
southern Pacific at 1854. New York Cen
raj at li4A. Louisville Il NASHVILLE at
81. Pennsylvania at liSs, Atchsson at
Cos Northern Pacific at 1901, Amalga-
mated Copper at S6b. Reading at l642 and
% on.
Apart from the loss In tne pank
bearings these prices are very interest
ng In connection with present market
onditions.
There arc certain cotton people In Liv-
rpool who seem to think that the upift
as gone far enough and therefore that
would not be advisable 10 follow tho
dvance further. Hence reactions are
,oked for In that quarter. This opinion
based In part on the idea that unfa-
orabIe crop accounts have been discount
d. and that Manchester advices are not
together favorable some calling them
unfavorable-
silver Lake, Brighton. Brighton ho.
ell will open for business Juno 10.