New-York tribune., 1911-09-25
those Of diplomacy and economics IL
favor of the preservation of peace.
MONEY AND BUSINESS.

day needs are increasing and merchants
are adding TO depleted stocks OF staples
that alwayssare in demand at this period
Of the year. Large movements. however
are not in evidence, with no indication or
Improvement in this respect until the
business men and flnanciers OF the coun-
try feel assured that the present un-
settled conditions in the financial mar
kets and the readjustment of the affalrs
Of corporations to the Supreme Court
Interpretation of the Sherman law ana
to the enlarged powers Of the Interstate
Commerce Commission will have no per-
manent adverse effect upon the country
industries. Capital Is cautious. and 1t is
not surprising that II refuses to move
actively into general business and In
vestment channels pending the solution
Of perplexing problems now confronting
the nation. New conditions have been
created. but there is no good reason 10
suppose that they cannot be met by
business in a way that eventually Will
work out in favor of both producer and
consumer, despite the present pessimistic
sentiment in the Wall Street community.
The bear campaign against securities
has finally been effective in bringing out
investment holdings from timid sources.
Reason in some quarters has given way
TO fear that is based more upon fancy
than fact, and many investors ordinarily
proof against the unsound theory that
breaking stock market always fore
shadows commercial and financial dis
aster have recently, we believe foolishly,
converted prime investment issues into
cash. There is nothing in the general
outlook that warrants the assumption
that actual investment value Is depreci-
ating. Certain companies that are not
paying conservative dividends based
upon earning power doubtless VIII find It
necessary TO cut their disbursements TO
stockholders but a widespread lowering
Of rates appears out Of the question,
notwithstanding the melancholy predlc-
tions Of bear spectators that the gov
ernmcnt's intention TO compel all cor
porations TO conform to the law by reg
ulating their organizations and opera
tions along lines acceptable to the courts
viii bring about business chaos In this
country. High grade investment securi-
ties are selling on basis that returns
from to more than 619 per cent, but it
is not likely that the ordinary investor
will come into the market for even the
best issues until prices begin to move to
higher levels.
Money rates at this centre are easy,
and the supply of lendable funds Is FAR
In excess Of current stock market and
mercantile requirements. Quite nat
urally under present money market con-
ditions in Berlin funds have been d.
verted from New York to the German
CAPITAL. where at the close OF the last
week as high as 6l9 per cent was Of
fered for one-month loans from our mar
ket Not as n consequence OF financial
conditions in London, but owing 10 the
disturbance on the Continent, the Bank
Of England has raised its minimum rate
OF discount. All the European banks
have advanced their official quotations,
and the unusual action of the Bank OF
France, which seldom changes its rate,
In placing it's figure at higher range
has been effective in strengthening for
eign exchange here, current indications
apparently pointing 10 Withdrawals of
gold from New York for the account OF
tho French institution. Fortunately, we
are in a position to lend money TO Eu-
rope. Our foreign trade continues to in
crease, exports OF merchandise In Au-
gust being larger than in the correspond
ing month Of any preceding year and
showing an excess over imports to the
value OF S1S,414,403 which makes a
total excess from January l Of S252,-
.041, ,1S9.
Prices for most commodities have
made new high records for the year In
recent days the chief exception being
cotton. which has declined under the in
fluence OF large receipts, favorable
weather conditions in the South and un-
settled trade and political conditions
abroad Declining prices have encour-
aged buying OF futures by the mills TO a
greater extent than has been reported
in many weeks, while the demand for
cotton goods shows noteworthy improve
ment. Foodstuffs are higher, and to the
defeat Of reciprocity is accorded the
credit for the big advance IN the cereal
markets. Steel and iron trade conditions
are far from satisfactory, and at the
moment authorities on the industry find
no grounds for expecting expansion in
the demand for finished steel products
for the rest OF the year. New business
has shown a heavy falling off in the last
three weeks, further price reductions
have been made and the largest consum-
ers are almost entirely out Of the mar
ket. except users Of structural materials.
Under prevailing low quotations the
margin OF profit is extremely small, and
manufacturers are said TO be consider
ing a policy of wage reduction in order
n offset the decline in orders and prices.
The railroads confine their buying to the
barest needs. Copper prices are weak
and exports Of the metal have fallen off,
owing TO the disturbed foreign situation
How many more Improvements have
been made since Friday in the perfect
charter