The Sun.
London, England, 1867-05-22 00:00:00

Returning Corfidenee.

There- are at least some symptoms of a revival
both in the English Stock and Share Market and
in trade. After a period of unexampled depression,
which has left Capel Court in possession of the

jobbers, an isolation which they by nu means ap-
preciate, the public are again beginning to invade
the precincts ; timidly, and step by step, as an
elephant crosses a boat bridge over an Indian river.
It is no wonder that the public advance slowly and
with the utmost caution, after the bitter experience
of the past 18 months. If fools rush in where
angels fear to tread, when the fools are " scared"
they are more chary of approaching the spot
where they have been frightened than a burnt
child is of the fire. Scarcely within the memory of the
present generation has such an opportunity for invest-
ment offered as the present; and those who understand
how to avail themselves of it, and have the means,
will undoubtedly reap a rich harvest. Those who
have read E. F. SATTERTRWAITE and Co.'s last circular
will be painfully, if truthfully, reminded of a pre-
diction made by these brokers three yearhgo in
estimating at their true worth a variety of inflated
securities then popular on the London Stock Ex-
change, and another group at that time unduly de-
pressed. The circular compares these investments
now in support of the assertion they then made,
and those who neglected their advice have bitter
reason to rue the confidence with which they fol-
lowed the delusion then prevailing. We hold, how-
ever, that the circumstances are now reversed, and
that some of the companies named in the circular
will show a year or two hence a rise out of all
proportion greater than the more sound securities
then neglected in favour of these inflated new con-
cerns. The companies that have withstood the
ordeal of the last year have been subjected to a test
which has strained every link. Their cables have
been paid out to the bitter end, and that they
have not parted is strong proof of inherent strength.
It may be true that some are strained so as hereafter
to be worthless, but many now thatthe gale is rapidly
subsiding will inspire renewed confidence and re-
cover their position. They are like puppies that
have had the distemper ; most of them die, but those
who survive and regain health are the more strong,
and hold a better guarantee of a prolonged life.
We believe this to be the case with some of the
companies enumerated in this circular, which will
yet become sound and substantial establishments.
Take, for instance, the most depressed of SATTER-
TIIWAITE'S list that survives—the London Financial.
That company advanced to railway contractors over
£1,600,000, covering the advance with securities,
then valued at about £2,400,000. The securities
became unsaleable, the contractors insolvent ; and
the company was left to meet its liabilities either by
a ruinous sacrifice of the securities, or by calls on
the shareholders. Having a rich proprietary they
were enabled to adopt the latter course. A heavy
loss had to be endured, but on the whole the share-
holders, having confidence in the ultimate recovery
of the Railway Preference Stock and Debenture
Bonds in the strong box of the association, preferred
to bear the burden, though many of them were sacri-
ficed in the effort. In one year £600,000 were called
up, thus doubling the capital of the company. The
consequence is that the association has all but liqui-
dated its liabilities, and retains, intact, its securities.
The pressure of the calls has forced down the shares
till they are ahnost unsaleable, hut the market price
is no criterion of the value. When quoted, as given
by the circular, at 10 premium, they were not worth
anything approaching to that price. When quotA,
as at present, 22 discount,—the chances are, they
are worth a great deal more. The General Credit
has bent little, comparatively, to the storm, and
never failed to pay a good dividend. The Interna-
tional Financial has required no support, meeting
unaided all ita liabilities, though paying no divi-
dend for the last year. The Credit Foncier, after
distributing fabulous sums among its proprietors,
paid no dividend for the last six months. We pre-
sume the value of the shares depends much on the
real worth of the undertakings launched by the
company, and the ability of these concerns to fulfil
their engagements. They arc now all quoted, as we
explained in a former article, at a ruinous discount,
but this does not necessarily represent their real
value. On the whole, we repeat our belief, that
there is a greater rise in the future of many of these