The Sun.
London, England, 1869-01-11 00:00:00

TRADE AND FINANCE,

Trade generally is of a healthy and legitimate character,
although, owing to the almost general absence of specula-
tion, the volume of trade is not so great as it was two or
three years since. Nevertheless, there has been a gradual,
although slow, recovery from the recent great depression,
and the present aspect of affairs augurs well for the
success of the entu:ng year, from a commercial point of
♦iew.

The attention of the cotton trade has lately been drawn
to the imports of Australian cotton—almost a new feature
in the market. 2,500 bales have been offered at public
auction, nearly the whole of which found buyers at the
following prices:—tor good and fine bright colour, mid.
110.; dull and grey, 104 d. to lOid.; good staple, from
Tahiti seed, 12d. to 12d. per lb. The increase in the pro-
duction of cotton in the colony of Queensland during the
past three years has been steady, the imports into London
during 1867 being only 1,073, whilst in 1868 they were
5,000 bales. The quantity now at sea is about 2,000 bales.
The quality of this cotton is good, but is still capable of
considerable improvement, the great drawback to its more
general use being the irregularity of staple caused by the
action of the saw-gins, it being in many eases completely
cut through ; to borrow an expression from the spinners,
the cotton is " ginned to death." The colour is good ,
some of the samples recently brought forward eliciting
general admiration for their fine golden tinge ; and were
the failing above alluded to remedied, this cotton would
rank far higher than it now does, and would command
an advance upon present rates which would partially
compensate for the withdrawal of the Government bounty.
It is a fact, that hitherto the attempt to naturalise cotton
in the colonies have failed, and, even in India, the experi-
ments with American cotton-seed have only ;met with
partial success. Better fortune appears to have
attended its introduction into Australia, and we trust
that the colonists will give this important subject the
attention it merits. Now that the colony is suffering from
the heavy decline in the value of wool, it is not improbable
that some of the farmers will take to the culture of the
cotton plant, especially as the climate of the country
appears specially adapted to its development.
The corrupt management of the railroads in New York,
the revelations of which bid fair to outvie any disclosures
that may have been made on this side, is well exemplified
in the case of the New York Central Railroad dividend.
The directors of this company have recently declared a
dividend to the stockholders of 80 per cent. in
certificates, and 4 per cent. cash on the stock and
the certificates, equalling in all $22,820,600. This
amount is said by the directors to represent the invest-
ment of net earnings in construction, real estate, and
other acquired property, which the directors say ought
properly to be represented in the stock account of the
company. It is difficult to reconcile this action of the
direction with the repeated professions of the board. Two
years ago they applied to the Legislature to grant
them power to increase their charges in order to
meet their usual dividend, and it (is well known
that the company was involved to the extent of $500,000
by the last distribution. Now we find the directors
declaring a dividend equal to $23,000,000, which they say
represents net earnings invested, and yet leaves a balance
of $1,000,000 in the treasury. It is impossible that so
large a profit can have been made during the short
period that Commodore Vanderbilt has had control
of the board, and the very fact of his being at the
head of the management is sufficient to attack a Wall-
street odour to the whole affair. So great is the suspicion
attaching to these certificates, that the operators in Wall-
street refuse to deal in them unless attached to the
original shares, which are, therefore, not quoted
ex dividend. A rapid advance, however, has
taken place in prices, which was doubtless
the primary object of the directors, but as they have not
the power to create stock, they will have to apply for a
special Act for the conversion of the certificates. They
will then be enabled to apply for power to raise their
charges, as they will be utterly unable to pay a dividend
on so large an amount of stock. We draw
attention at length to these facts, to show
what little importance is to be attached to statements of
this kind from New York, and how little reliance can be
placed in American private investments while the law
remains in its present defective state at New York.
They do not appear to be proper channels for the employ.
ment of British capital, being risky and dangerous in the
last degree, and the neglect of the authorities to take any
steps for the recurrence of such affairs should be a salutary
warning to all British capitalists.

RAILWAY TRAFFICS AND PROBABLE
DIVIDENDS.

The Railway News submits its usual half-yearly state-
ment of the percentage in the traffic receipts of the
different railways, from which we gather the following
particulars :—Bristol and Exeter, decrease 1 per cent. ;
Caledonian and North British, increase 41 ; Glasgow and
South-Western, decrease 1 ; Great Eastern, increase 4;
Great Northern, increase 1; Great Western, increase 1;
Lancashire and Yorkshire, increase 13 ; London and
Brighton, decrease ; London, Chatham, and Dover,
decrease 4 ; London and North-Western, increase 3 ;
London and South-Western, increase 1 ; Manchester and
Sheffield, increase 3; Metropolitan, increase 33; Mid-
!And, increase 73 ; North-Eastern, increase 3 ; North
London, increase 5 ; South Devon, decrease 3 ; and
South-Eastern, increase 2. Our contemporary believes
that the following dividends will probably be declared :
London and North Western, 63 against 61 ; Midland, 6
against 53 ; Lancashire and Yorkshire, 61 against 63 ;
Great Northern. 74 against 73 ; York, 53 against
5 ; Sheffield, 2 against 2 ; Berwick, 6 against
6 ; Leeds, 36 against 3i ; Great Eastern, 1
against nil Brighton, nil against nil. The Metro-
politan is purpt;:ely left out; probably 7 per cent.
will be declared. The Railway News does not look for
improved traffics for some time come, as the condition
of the cotton trade especially will ati;:-.t them for 601110
time.