months of the year money was abundant in spite of gold exports, and rates remained easy in spite of many calls for money. In March, for example, the Union Pacific paid $20,000,000 for Southern Pacific stock; the Standard Oil Company declared a 20 per cent. dividend; and the syndicate managers of the United States Steel Corporation called $25,000,000 from the underwriters, without perceptible effect upon the money market. In April, however, the steady increase in loans and deposits began to have an influence; the surplus reserve declined, and rates rose sharply. The rate of 75 per cent. on May 9 has already been noted. From that date on to the close of the year, the money market was disturbed and uneasy. The sub-treasury gained at the expense of the banks. Large amounts of currency were taken to the West, and the depleted state of the surplus reserve led to a reduction of loans from a maximum of $902,755,300 to a minimum of $857,960,000 in December. Deposits also showed a heavy decline. Some relief was afforded by large bond purchases by the secretary of the treasury and by gold imports, but the condition of the money market after June, in spite of the measure of relief thus afforded, was very unsatisfactory. A noteworthy feature was the anxious care with which the leading banking and financial interests guarded the market at every time of stringency. The action of the banks on May 9, in offering large sums at the market rate, thus breaking the rate from 76 per cent. to 6 per cent. for call loans, has already been noticed. In the first week in July the market seemed again to be getting beyond control when the Chase National Bank and the Northern Trust Company offered $14,000,000 at 6 per cent. Again on Saturday, September 7, when the attack on the President had seriously unsettled confidence, the action of the clearing house committee in offering to loan $30,000,000 at low rates undoubtedly relieved a situation which might easily have become disastrous. The money market during 1901 was helped over a number of rough places by a liberal policy in regard to loans, where a narrow and selfish policy on the part of the banks would probably have precipitated a ruinous depression. Foreign exchange was generally high throughout most of the year, owing to the disturbed condition of foreign money markets. When the rates fell off during the early autumn below the usual gold export point, much surprise was expressed that gold exports should continue. The reason assigned was that during the contest for the control of the Northern Pacific the participants had sold large amounts of exchange for future delivery, and that the fall shipments were on that account. Foreign Trade.-The totals of imports and exports of merchandise for 1901 are presented in the following table: The significant fact of our foreign trade during 1901 is the rapid increase in monthly imports and a marked tendency toward the reduction of our favorable trade balance. The decline in exports has been especially marked in manufactured products. Thus, for the eleven months ending November 30, 1900, the total value of iron and steel exports was $119.604.848, and for the same period in 1901, $94,091,967. The decline of our favorable trade balance in 1001 would have been much greater had it not been for an unusually heavy exportation of breadstuffs, which for eleven months of 1901 exceeded by $34.756,538 the exports for the same period of 1900. Other lines of manufactured exports show the same declining tendency as iron and steel products. The explanation is found in the general depression of prices abroad coinciding with an advance of prices in the United States, thus encouraging imports and checking exports. A classification of imports and exports for 1900 and 1901 is presented in the following table: 1901. 1900. .$219,934,786 $219,338,443 Articles in a crude condition which enter into domestic industry 304,031,545 280,380,796 factures and mechanic arts Articles wholly or partially manufactured for use as manu Articles manufactured ready for consumption. The most considerable increase in imports were in crude raw materials and in articles of voluntary use and luxuries, which illustrates not only the exceptional industrial activity of the past year, but also the general increase in material wellbeing. In exports the greatest advance occurred in the class of agricultural products, mainly due to the considerable advance in the prices of breadstuffs and meat products. The decline in manufactured exports has already been indicated and illustrated by the falling off in iron and steel. The failure of mineral exports to show a material advance is noteworthy. The hopes entertained of a substantial increase in coal exports were disappointed, the total amounting to 6,932,659 tons for eleven months of 1901, as compared with 7,145,039 tons for the corresponding period of 1900. Prices, Bank Clearings, Railroad Earnings, and Internal Commerce.-The prices of 20 staple commodities, as compiled by Bradstreet's, are represented in the following table: Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec. Jan. 1st. 1st. 1st. 1st. 1st. 1st. 1st. 1st. 1st. 1st. 1st. 1st. 1st. The general tendency of prices has been upward. The advance in breadstuffs and meat products was mainly due to the shortage in the corn crop. The advance in iron, steel, and coal is a reflection of the unparalleled industrial activity of 1901, a severe car shortage during the autumn months having materially contributed to bring about a scarcity of coal. The metal market was adversely affected toward the close of the year by the decline in copper, which depressed tin and lead. Sugar showed the effect of fresh competition between the trust and the independent refiners. The decline in cotton was mainly the result of a decrease in the foreign demand. The index number of Dun's Review, arranged by classes of commodities, gives a general view of the price movement: It appears from this table that the farming population secured the largest share of the gains from advancing prices. The rise in breadstuffs was about 38 per cent., in meats 15 per cent.; manufactured products scored much smaller advances. The net rise in general prices was 7 per cent. The result of the advance in the prices of foodstuffs was to raise materially the cost of living to the laboring and artisan class. This increased cost of living, however, was largely compensated for by full employment for all classes of labor. The business activity of the year was unparalleled. The tables of bank clearings and railway gross earnings furnish the best evidence of the general prosperity: These figures show a substantial increase in general business for every part of the country. It is important, however, to observe that while the total clearings of the entire United States increased from 85.7 billion dollars to 117.9 billion dollars, or 37.6 per cent., the. clearings outside of New York increased only from 33.1 billion dollars to 38.5 billion dollars, or 16.4 per cent. These outside clearings mainly represent the record of industry and trade as distinguished from the record of speculation, while New York clearings include the record of the Stock Exchange. The improvement in general business is more accurately reflected by the figures of railway gross earnings: The greatest advances, it appears from the foregoing table, occurred in Central and Southwestern States and in the Pacific States, but every part of the country shared in the prosperity. The evidence of general prosperity afforded by clearings and railway earnings is confirmed by the record of lake commerce: With the exception of corn, which was in short supply, and copper, which was held off the market, the movement of these staple commodities showed a substantial increase. Distribution shared equally with production in the general prosperity. From reports to Dun's Review, the following summary has been prepared showing statements of conditions in different lines of merchandising and manufacturing business at various cities during 1901, and also, where given, comparison with results of 1900: |