New-York tribune., 1911-02-27
MONEY 4ND BUSINESS.

1relSnt rates on HisHci 'S'N
sold stocks regardless of their actuai
value. while it foolshly predicted dlsas-
trous times for the transportation COM
panies and for the general business ol
the country. The speculative community
acted the same way following the de-
cision years ago in the Trunk Line AS
sociation case, the so-called transmits
souri, decision and the victory OF the gov
ernment in its suit against the Northern
Securities Company. In the instances
named stocks subsequently recovered
and the country's industries continued to
prosper. The financial markets should
not reflect for any length OF time the
shock impaired by the action OF the
Interstate Commerce Commission ior
the good reason that there is nothing In
the decision that will interfere with the
growth Of the railroad business in this
country and nothing that can lessen the
| confidence of home and foreign capital
in our investment securities. Indeed the
commissions opinion is splendid trlo-
ute 10 the wonderful growth. credit and
prosperity of the American railroad COM
panies. Reports from most departments
of trade are encouraging, and progress
sive improvement is looked for In all
lines. Railroad earnings show gains
over a period a year ago when trans
portation results we're unusually tavor-
able. bank clearings are heavier than
they were in the closing months or l9lo'
and our best barometer of trade, the
steel industry, indicates a rising volume
of business
Money movements between this centre
and the interior arc less in favor Of New
York than they were q few weeks ago,
and from the current course OF domestic
exchange it is quite apparent that the
mercantile demand for accommodation
at Western points is becoming active. In
the local market rates for all kinds Of
| loans are easy, owing to the large sup
plies Of idle funds i'm the banks. but A
frmer tendency is looked for. owing
to expected large financial operations
and to improving business conditions
throughout the country. Local institu-
| tions are discounting commercial paper
of the highest grade at r cent, and
substantial supply of bills of this char
acter has been drawn in recent days,
while paper yielding Az per cent also
! has been offered in volume. Demand for
| money against stock market commit
ments is light at the present time. A
large accumulation of funds by several
of the biggest banks and the insistence
! by these institutions on collateral OF
exceptional value havo developed the
theory that plans are being made for the
reorganization of the Standard Oil Con-
pany and the American Tobacco Com
pany in the event Of a victory for the
/ government in the suits against the two
corporations now pending in the SUI
preme Court. Such reorganization
might involve heavy distribution Of
cash TO stockholders.
In the wholesale and retail drygoods
trade new business is growing, though
slowly. with underlying conditions
strong. High costs of production still
interfere with the restoration of normal
times in the cotton goods industry, and
the curtailment of output continues i'm
force, the belief increasing, however.
that the declining tendency in the price
of the raw material will bring about Il
readjustment that will be accompanied
by expanding operations. Fall business
In woollcns and worsteds is excellent,
while better conditions arc reported at
4 l1o Ill m fii
ures is inactive on an irregular move
mcnt of prices. the general tendency,
nevertheless. evidently being in the di-
rection of lower levels. The menace Of
anti-option legislation serves TO restrain
trading. and from current indications
there appears little probability Of public
participation in the dealings until prices
have been carried to cheaper levels.
Stocks Of cotton are unusually large at
home and abroad. Most commodity
prices have moved To- "A lower range, cs-
pecially wheat. which is now at its
cheapest quotation since 1908, as a re-
suit of constant liquidation based OF
the statistical position of tho market
| and the bearish sentiment encouraged by
| favorable weather conditions in the win
ter wheat belt. Exports both of wheat
and corn are now running in excess of
the small weekly totals reported at this
time last year
"The Iron Age" says that current de-
velopments support the view that the
buying movement in finished steel mate
rials which started in mid-January is
not mere rebound from the extremely
restricted buying in the closing weeks
of 1910. New orders are being taken at
rate much greater than that Of Janu
AIRY, the leading Pittsburg interest. for
instance having sold 100000 tons of bill
lets, sheet bars, rails and steel ties so
far this month. against 100000 tons In
the corresponding time in the month be-
fore Railroads are buying more freely,
and in spite of the gloomy forecasts of
railroad men who are disappointed over
the rate decision the trade is looking for
gradual expansion I'm orders from the
transportation companies. The chief
activity at the moment is in the light
lines such as wire and tin plate. Pig
iron is firmer and more buyers OF foun-
dry iron are in the market. Copper Is
inactive, while prices are "A trific lower.
Consumers arc holding off in the ex-
pectation Of a further decline In quota
tions for the metal. and are buying only
for day 10 day requirements. but pro-
ducers do not look for further material
recessions In the coal trade consumers