New-York tribune., 1911-12-04
MONEY AND BUSINESS.

market. Distinct gains are reported III
mercantile operations in the East and
West, and in the South the influence
upon sentiment in business circles OF
! the largest cotton crop ever gathered ls
reflected in increased willingness on the
part of merchants to place forward or
ders. The South made money last year
from a relatively small cotton harvest,
/ which was marketed at high prices. and
in spite Of the low prices prevailing for
the staple this year planters expect 10
close their accounts with satisfactory
profits, owing to the wide market for
J the product. Trading in cotton goods Is
active. Few complaints are heard in
mill circles regarding the character OF
current business, and it is worth noting
| that in the majority of cases manufact-
urers of cotton goods have enough Or
! ders on their books to keep their plants
! busy for the next two or three months.
/ The margin of profit is still small but it
| is generally believed that prices have
| touched bottom and that expanding
| transactions will tend to bring about
better quotations. Exports Of drygoods
to China are restricted, owing TO the po-
| ltical situation in that unhappy country,
but the loss on this account is Offset by
enlarged demands from the South Amer
lean market. Speculation i'm cotton fut-
ures is confined almost entirely to the
operations of the professional element.
| Investment transactions indicate 4
better demand from capital for high
grade issues. while speculative move
ments reflect the usual hesitancy among
operators to take the bull side Of the
market when Congress is about TO as
semble. Efforts TO bring about mate
rally lower quotations have not. how
ever, been successful, and unless unfa-
vorable factors should develop it is not
likely that bear manipulation will be
effective in dislodging stocks, which as
a rule are in strong hands. There has
been a marked change in sentiment in
the financial community in recent weeks
regarding the future of money and bust
ness in this country. Confidence has re-
turned, and the fear of acute industrial
depression as consequence Of politics
and the governments purpose to compel
the corporations 10 obey the law is no
longer entertained. Corporations are
spending more money for Improvements
and betterments, and bankers are en-
couragfng the issuance Of new securities
for which there appears to be a ready
market. Corporations are now able TO
secure accommodation at fair terms,
and investors have the privilege Of buy
ing our best securities on conservative
income basis.
Call loans are quoted at much higher
rates than those reported in recent
months and time money is somewhat
firmer. the advancing tendency being due
to the heavy drains upon this centre for
funds for Canada and California and to
the preparations for the December in
terest and dividend payments. Bank re-
serves here are not large, but the local
institutions can easily increase their
holdings if the eXigencies of the situa-
ton should require such an operation.
Furthermore, 1T is quite probable that
without any effort on their part to at
tract funds the local banks will show
expansion in their holdings i'm the cur
rent month through receipts of currency
from the interior In view of the fact
that we arc lending upward Of S1J0.0OO,-
600 abroad and are adding to our for
al pvoJito nv ,f
chandise. there is no reason for uneas-
ness over the position of the American
money market. The federal Treasury is
in strong condition and the country a
large has never been richer i'm the mat
ter of cash assets than at the present
time. Since August | the local banks
have gained more than S26,0O0.00O on
their operations with the interior, while
in the last two weeks they have lost
more than $16OOO,0OO on shipments Of
money to Canada and San Francisco and
exports Of gold to South America The
foreign money market situation shows
improvement, and 1t is not unlikely that
our loans abroad will, in large part, be
paid at maturity without renewals being
asked for.
The iron and steel trade shows i'm
provement in the volume of new orders,
but the price situation remains unset
tied. II is thought, however, that the
better demand for finished steel products
and the larger contracts now being
placed by the railroads for rails and
equipment will soon be reflected in bet
ter quotations. 1t is estimated that in
the last four weeks the railroads have
closed negotiations for fifty thousand
cars and more than two hundred loco
motives. Structural material is being
freely taken. The general feeling in
the trade is far more optimistic than it
was in the summer months. and, al
though earnings for the final quarter of
the year are not expected to be heavy, it
is generally believed that results in 1912
will cause no apprehension Of dividend
reductions. In most instances COM
modify prices show only unimportant
changes. Wheat is lower. owing to large
receipts at Western markets and con-
stantly increasing visible supplies az
home and abroad A 13-cent level has
been established for copper. A sus-
tanned 12l3-cent copper market would
mean lower dividends for many of the
large copper producing companies.
Los Angeles. China and Persia have
now relegated the Turco- Italian war to
the third news page OF the daily papers.
This fully vindicates the worlds opinion
badlY chosen