New-York tribune., 1911-02-20
JOVCY AND BUSINESS.

MONEY AND BCSiNESS'
Conservatism marks the operations OF
tho mercantile community. but business
in general nevertheless is eNpahoiiis'
every development of the last TWO "eeh'
tending to strengthen commence III 'he
theory that improvement in our INDUS
tries has begun in earnest. Merchahts
shelves are carrying light stocks. and as
demand Is growing increased ACTIVITY
NAV be looked for in wholesale lines 10
supply the requirements OF the Ordinary
consumer. The period OF economic re-
adjustment through which the country
has passed has strengthened underlying
conditions and paved the way for the
development of a healthy growth In all
Gepartments of trade by lessening the
distance between production ana con-
sumption; in other words. II has prought
the level Of prices within the reach OF 'he
consumer. In most commodities markets
quotations are now well under the high
| figures of the last year. ana from current
| indications the downward movement mas
not vet reached it's limit, although cur
rent prices appear cheap compared Win
the averages reported for 1910 The re-
cent sharp decline in raw cotton has not
been followed by material chahge III
the cotton goods market. as buyers con-
time to hold off in the hope that weak
ness in the raw product will result in
general readjustment Of prices on fln-
| ished goods. an idea that is not encour-
aged by the mill men, who assert that
| for the last year or more they have been
operating at a loss, owing to the big
difference between the cost Of the raw
material and the selling price of the
manufactured article.
! Orderly speculation in stocks, with the
tendency Of prices apparently in favor
of ultimately higher levels, an active de-
mand from capital for new and old in
vestment securities, an abundant supply
of money for the financing of railroad
and industrial propositions and a grow
ing export trade are factors that natu-
rally strengthen confidence in financial
and business circles and Offset the sad
predictions of disaster which a few Wor
rying prophets say will develop II the
railroads are not allowed TO advance
their freight charges and If the Supreme
Court finds that the Standard Oil and
American Tobacco companies are oper-
ating i'm violation of the antitrust law.
These decisions will doubtless soon be
out of the way. and If they are in favor
of the government it will not be a diff
cult matter for the corporations TO ad-
lust their affairs to the conditions i'm
posed by the court. Railroad managers
do not appear to be apprehensive of any
trouble i'm the event of their advanced
freight rate schedules being rejected by
the Interstate Commerce Commission,
as they are going ahead with their plans
most optimisticaly of the outlook for
both gross and net earnings Net earn
ings are making better exhibits than were
reported i'm 1910 There is more chance
of increases in dividend rates I'm the cur
rent year than there is Of reductions,
and i'm connection with this II is interest
ing 10 note that the Southern Railway,
which passed its dividend on its pre-
ferred stock following the panic Of 1907.
has resumed payments to the holders of
that issue.
Foreign trade returns present figures
that are strengthening our position i'm
the international money market and ma
terially adding to the wealth and pur-
chasing power of the country. In the
month Of January exports Of merchan-
disc exceeded imports to the value of al
most S6S,O0O,O0O, against an excess of
less than Sl1OO0,000 in the correspond
ing time in 1910. making for the seven
months of the fiscal year an excess of
1868, .329, compared with Sl9296S, ,329
ia the same period in the preceding yea:
or September | Of the last year there
was a deficit against us of upward of
$1,0O0,OOO. and the accumulation of the
present large balance in our favor since |
that time has been due in large part To
shipments of cotton. which to date from
September have reached the value OF
about S432, 100000. against S3l5.OOOOOD
in the same time in the year before. In |
addition to the growing trade balance as |
factor in the sterling exchange mar |
ket foreigners are building up our credits |
abroad by the purchase of American Sc
curitcs, which insures easy rates for ex-
change here, and which will place New |
York In a position To draw gold from |
Europe If the metal should be needed at |
this centre. Money is growing easier |
abroad. and the Bank Of England and |
the Imperial Bank Of Germany have re-
duced their minimum rates of discount.
Money is being freely offered in the local
market, and rates are somewhat lower
than they were a week ago. although In
banking circles it is thought firmer
tendency will soon develop as a conse-
quence Of borrowing by the corporations
and an increased demand for accommo-
dation from mercantile quarters. also