New-York tribune., 1911-01-02
MONEY AND BUSINESS.

The business year of 19ll begins win
the backing of large crops, sound bank
ing situation, improving foreign trade
and ease in money rates at home and
abroad. There are other favorable fac
tors in the current situation, but those
named are Of unusual Importance ana
representative of conditions that are
slowly STRENGTHENING the underlying po-
sition OF money and business in this
country. Reaction and readjustment,
however, are still under way in our in
dustries. but the movement is proceed
ing along lines that promise normal ex-
pansion in the country's activities at no
distant period. Measured by bank
clearings the shrinkage in business has
not been heavy. Compared with l9O9
clearings in the last twelve months
showed a loss Of little more than | per
cent, with the chief decline in New
York, where a large contraction IN the
volume Of dealings OH the stock EX-
change was effective in bringing about
q decrease in the city's clearings OF d
per cent. Trading in stocks fell off more
than 24 per cent in 1910 as compared
with the record Of 1909. with a reduc-
ton in the transactions in bonds Of up
ward of % per cent. Total bank eX-
changes for all cities in the last year,
while under those of the year before
were in excess Of the returns Of the pros
porous year of 1906, and almost double
the record OF ten years ago.
General trade in the last week of the
wear was inactive. so far as forward
business was concerned, but day TO dav
operations were large, with excellent
holiday results in retail lines throughout
the country. At the moment there is
little disposition on the part Of buyers
TO make important commitments for the
future, and. according to the opinion or
the best informed men in industrial CEN
tres. there will be no extensive enlarge
ment of trade until the various uncer-
tainties in the present situation have
been eliminated, as. for instance, the
CORPORATION cases now before the Su-
prene Court of the United States, and
the railroad rate question. While the
course of the stock market reflects in
light operations the unwillingness OF
capital TO move actively into new invest
ment channels, pending the removal OF
current uncertainties, there is no rea-
son to suppose that after the last twelve
months OF heavy liquidation in stocks
and bonds the new year will record a
long period of declining values. Money
rates are unusually low for this time Of
the year, owing to the absence Of a spec
ulative and mercantile demand for ac-
commodation. Sterling exchange like
wise is abnormallv weak. but II does not
appear probable that this condition will
prevail for any length of time. Borrow
ing by our bankers abroad in 1910 was
light.
In cotton goods the demand for Far
Eastern markets shows some improve
ment, but the general trade presents
no indication of an increased de-
mand in the immediate future. The
price of the raw material is still the con-
trolling influence I'm the business. and
from current indications it is quite likely
that further curtailment in production
will be put into effect early in the pres
ent wear Speculation in cotton futures
is light in volume, with prices easily re-
covering after every decline. There Is
no suggestion in the attitude of market
leaders Of the expectation of substan-
TALLY lower levels in 1911. but many
spinners continue to stay out OF the spot
market. on the theory that estimates OF
the crop OF 1910 have been entirely too
low. and that the present high quota
tion for the raw product will be fol-
lowed by a better range for the buyer
| Foreign spinners are buying more than
are the domestic mills. The wheat mar
| ket showed a frmer tendency In the last
week. hut closed we'll under the Level
reported a year ago. The larger num-
ber Of commodities are selling under the
range reported at this time in 1910. ant
il IS not unlikely that the movement
! toward a lower cost Of living will be-
come more pronounced in most lines as
the months go by.
! Pig iron markets ended the year with
an unimportant volume Of business re-
! ported further price concessions were
noted I'm various sections, but lower
! quotations failed to attract an aetiVe de-