New-York tribune., 1910-05-09
MONEY AND BUSINESS.

negotiations for further sales of solid
American railroad bonds to European
buyers is found In better prices on the
local Stock Exchange, a, decline in ster-
| ling rates to a level under the gold ex-
porting point and temporarily easier
tendency in money. while the ultimate
effect should be reflected In greater ac-
| tivity in various lines Of trade. The
railroads are the best customers OF the
steel industry. directly and indirectly;
the latter through the equipment COM
panies which become active factors in
the steel industry when the trsnsporta-
tion companies come into the market for
| new cars and locomotives. The rail-
roads need additional funds for new
construction, new rails and new rolling
stock, and the proceeds from the mar
keting Of their new securities at home
and abroad should be a most effective
influence in stimulating business in this
country. Leading bankers do not be-
neye that the death OF King Edward will
interfere with the financing Of our rail
road issues in Paris, nor do they look
for extensive liquidation in the London
and local markets, but they expect. how
ever. a period of irregularity and hesita-
tion in speculation until the effect Of the
accession Of the new monarch upon pol
itics and money in England can be de-
termined.
Sales Of our securities abroad, of
course strengthen the hold Of European
financial centres upon our gold supply,
and they are a menace to this market in
times Of stress at foreign capitals or of
unsettled conditions here, but this view
Of the matter naturally does not enter
into financial calculations at a time
when the situation in the United States
Is sound and our foreign credit is i'm
proving It is to be hoped, nevertheless,
that in the current year we shall have
sell in volume to Europe; that is. cotton
and breadstuffs, which, unlike sound in
vestnent issues, have a short life and
involve no interest payments. The out
look for the crops at this early period,
except in the case Of winter wheat, can
not be well defined. Winter wheat has
been injured by adverse weather
changes, and the present condition of the
plant does not foreshadow a large yield to
the acre, though injury to the crop may
be offset by the increase in the acreage
and by the planting Of other cereals on
abandoned acreage. Wheat was strong
last week, and powerful speculative in
terests were decidedly bullish, their ar
guments being based on the absence Of
a normal amount of moisture in the
wheat growing states and on the rapid
reduction in the visible supply of the
staple The weather has been more ia
vorable in the cotton belt, and replantins
in sections affected by the recent cold
wave is actively under way.
Although cotton goods are somewhat
f1rmer than they were a week ago, ner-
chants are not looking for a material
change in prices until the government
makes its report of actual crop condi-
tions. The demand for textiles in gen
eral is not heavy, and retail buyers show
unusual caution, with no disposition to
increase stocks except in cases where
price concessions are granted. The most
encouraging trade reports come from the
West and Southwest. spring business in
the East, while showing some improve
ment. not measuring up to expectations
Bank clearings. however. make favor
able comparisons with this period in pre-
ceding years, especially with 1906 when
our Industries were enjoying prosperity.
and railroad gross earnings also show
being handled. Net earnings on many
roads are not as encourag ging, owing to
the increased cost of transportation. but
the companies hope to offset their larger
expenditures by. higher freight rates,
which appear justified by current condf-
tions. Building returns for April show
a gain of IL per cent over those of tie
preceding month and per cent over
April last year; the coal trade reflects
increased buying by consumers: coke is
duh on reduced iron production and cop
per is still inactive.
Iron production in April was well under
the March record, and as many blast
furnaces have gone out of commission
since the April figures were compiled the
output I'm the current month should show
still further curtailment. In view of the
fact that iron production has been run
ming In excess OF the capacity OF the fin
ishing mills, the lessened output now re-
ported will doubtless serve to bring
about better conditions in the trade and
eventually lead to price readjustment in
the direction of a higher level. Prices
for steel are holding firm, and although
many mills are not operating at full ca
pacity the leading interests in the trade
are optimistic over the outlook for new
business in the rest OF the year. their
cheerfulness being based upon an actual
gain in orders since the first of the
month as compared with the same time
III April. There are no indications of a
serious recession in the steel business or
in any other line of work. though many
industries in addition to the iron and