New-York tribune., 1911-11-06
HONEY AND BUSINESS.

| although operations represent TO a con-
siderable extent a day-to-day movement
rather than commitments for the future
Basic conditions are sound, a reflection
OF which is found in our heavy loans 20
Europe; In our growing excess Of eX-
ports OF merchandise over imports; n
the addition to the wealth of the agri-
cultural community from the products
of the soil; in the increase of money in
circulation, and IN a rapidly expanding
population. Developments Of the last
week have been of a reassuring charac-
! ter, especially in relation 20 the securi-
ties markets. The plan for the reorgani-
/ Zation Of the American Tobacco Com
pany has made satisfactory progress;
uneasiness shown at the time OF the an
nouncement Of the government suit
against the United States Steel Corpora
tion has disappeared, and greater conf
dence is noted on the part Of investors
and spectators in the outlook for higher
prices for stocks and bonds quoted on
| the Stock Exchange and for issues Of
the public utility corporations. \ con-
! siderable amount Of money is moving
into electric lighting, power and traction
companies. There also Is q good demand
! for state and municipal securities, while
many investors who have become
alarmed over government activities
against the so-called trusts are invest
| ing their idle capital in real estate mort
I oa0
York City property.
| Seasonable weather has stimulated re-
tail trade, reports from various parts OF
the country indicating better business
! than that recorded at any other time
| since last spring. Improvement IS par
ticularly pronounced in drygoods and in
other lines which deal with personal
needs. In the jobblpg trade orders are
/ fairly heavy. The best feature I'm the
retail, jobbing and wholesale markets is
/ the indication Of growing confidence
among ell interests that business expan-
| sion IS slowly developing In spite of po-
| litical uncertainties and that the final
settlement Of the status OF corporations
under the Sherman law will help our in
dustries. Our money market is still the
easiest in the world, although In the last
few days demand for accommodation
has been quickened by the broadened in
ouiry for stocks, without, however, ad-
vancing quotations. except In the call
department Of the market, where rates
/ have shown greater strength than at any
/ time since January of the present year.
Merchants are we'll supplied with money
| for current needs, but any marked
/ growth in their operations should find
reflection in increased dealings in the
commercial paper market. Discounts
abroad have been lowered. though they
are still higher than the cost of money
/ here. and our bankers are still finding
profitable channels IN the foreign mar
/ kets for the employment Of their sur
! plus funds 1t does not appear likely.
| however that this country will ship gold
| to Europe In volume, IL at ALL as the
| foreign financial situation has been ma
/ terially strengthened by the practical
settlement of the Moroccan dispute.
Bank clearings in October showed an
increase over September and presented
moderately favorable comparison with
October a year ago. Eliminating re
turns from New York. total bank ex-
changes In the last month show I'M
provement over the same time I'm 1910.
| the small decrease reported for the whole
country being due TO the reduced volume
OF opera tons ir the speculative markets
at this centre Earnings Of railroad
companies are being maintained st
slightly higher level than was reported
at this period In 1910 the majority of
companies showing gains in gross, while
losses are small. Net returns also show
an advancing tendency, except in a few
instances, and the fear that the refusal
of the Inters tate Commerce Commission
TO grant higher freight rates and the de-
mand from employees for increased wages
would result i'm widespread dividend re-
ductions IS no longer worrying holders
OF railroad stocks. Certain companies
affected by conditions not bearing upon
the general railroad situation may lower
their dividend disbursements in the best
interests OF the stockholders. II is a
wise company management that stops
dividends when earnings after charges
are not sufficient TO meet dividend re-
quirements. Drawing on surplus account
for dividends never helped railroad or
an Industrial corporation.
Production and consumption will be
accelerated by cheaper commodities,
though immediate profits may be af-
fected. Already the lower quotations on
iron, copper, wheat and cotton have
stimulated demand from consumers. es-
peciallv for wheat and cotton, while inn
provement is reported in the inquiry for
finished steel materials. The copper
metal market also exhibits indications OF
better inquiry from home and foreign
BUYERS. Operations In the primary cot
ton goods market show steady buying
for immediate needs and a somewhat
better inaury for future requirements
Speculation in cotton futures is inactive
and as a rule option prices are lower.
Receipts of the staple are heavy and ex-
ports are large Conditions in the wheat
market suggest lower quotations.
-
! M, i'll traXcller of tho I'ufteJ