New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-21
MONEY AND BUSINESS.

General trade conditions throughout
the country are not responsible for cur
rent liquidation in the stock market.
Prices of our leading securities have de-
clined in recent weeks because of opera
tons against values based upon overex-
tended long accounts and Of unreason-
able conclusions in the financial COM
munity regarding the outcome OF politi-
cal attacks upon our corporations and
the yield OF the seasons crops. There
has been no investment selling of high
grade stocks, except in instances where
cash to protect speculative commitments
| in declining market. while the lower
quotations now prevailing are attracting
purchases for permanent investment ac-
count. both for home and foreign CAPT
tai. Nothing in the business situation
warrants the sale of American stocks
and bonds, but the apparent Willingness
of the larger Wall Street interests to
permit bear traders to hammer prices
naturally encourages the liquidation of
marginal accounts and induces enthusi-
astic short selling by traders, who
eventually will lose their paper profits
through the usual, squeezing process by
the men who are now the chief buyers.
Stocks recently sold were taken by the
strongest capitalists In the country and
by small investors who have faith IN
the ability of our railway and industrial
corporations to continue dividend pay
ments despite the pessimistic talk that
is heard in some quarters regarding the
! future Of money and business.
Mercantile trade shows irregular ten
cencies. but the undertonc Is strong,
while measured by payments through
clearing houses and gross railroad earn
ings the volume of business is heavier
than it was recently and well in excess
Of that recorded at this time year ago.
Clearings last week for all cities showed
q gain 81 more than ~ per cent, as COM
nared with the same period in 1910,
while for the first week in August rail-
road earnings presented an increase OF
ahout 4 per cent over the corresponding
time a year ago. Wholesale trade shows
announcement. There is more activity In
inhbing lines and the disapproVal by the
President Of tariff revision measures is
reflected I'm q more confident buying of
woollen goods and the raw material
while the firm stand taken by tn Elk
ecutive that only rational changes In
- pronounced feeling Of optimism IN
blisiness circles in all parts OF the coun-
fry Money is In abundant supply, ana
hank reserves above legal requirements
have been strengthened by the liquida-
ton Of Stock Exchange loans, TINS Item
of the local associated institutions now
standing at $50, i32,350 Interest and
discount rates are easier than those
ro,ed few weeks ago, but the banks
ore exercising extreme caution in lend
ing nj prevailing figures, owing TO the
harvest demand ahead. II additiohal
funds are needed in the autumn II VIII
be an easy matter to import gold from
Europe owing to this country's strong
position in international trade Which IS
reflected in an excess of exports OF mer-
chandise over imports for the seven
months ended July 81 to the value OF
so33 6O4 4T6. and for the last twelve
months of $533,912,0sl.
Reimbursement of conditions in the raw
and finished market for cotton restricts
business i'm cotton goods. but In the retain
drveoods market improvement Is re-
norted Speculation in cotton futures Is
moderately active, with a disposition on
the part Of large local spot ana trade IN
terests to protect maturing contracts
Evidence that the South expects an early
and large crop is found in its sale OF
NOW crcp months. and the sound basis
upon which the South is figuring out a
bie CROP is reflected in reports from va
r,ous sections Of the cotton belt showing
no marked deterioration in conditions
from those reported in the government s
last statement, which indicated a record
breaking harvest. More favorable weather
in the corn and spring wheat territory
leaves little doubt that the end of the
current month will find the grain crops
IN much better condition than was re-
ported by the government at the close
of July. Prices for both wheat and corn
are lower.
Connection for new business in the
steel market is accompanied by reports
NJ price cutting, but the general ten
dencv Of the market does not suggest
imnortant reductions from the levels
NOW prevailing. orders for structural
material are satisfactory in volume.
while the inquiry fon steel rails indicates
an increasing disposition on the part OF
the railroads to come into the market.
Foundry iron is in somewhat better de-
mand and the buying of coke is increas-
ing. New business I'm the copper market
is no heavier than that usually received
at this time of the year. In the general
metal trade there is no lack of confidence
in the theory that the autumn months
will witness a decided expansion I'm con-
sumption. Commercial failures last
week as reported by Bradstreets were
10. against 20S in the preceding week.