The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-12-02
Tne RIsing speculation In shares.


the RIsing Speculation In Shares.
From toe London Observer, Nov 81
The rfen0rs of speculation 10 new and foreign
companies hss for some time past attracted earnest
attention. ard we lave not failed to express very
decided views upon the matter. If there were not
another undert liking commenced Tor the next twelve
months emo ,gh would be found to exist to absorb
all the surplus capital of the country Not half Of
the subscribers To new projects have the means in
tention TO remain shareholders They may meet the
first second call, and then realise gain or loss
according the state Of the market, leaving othsrs
to sustain the subsequent drain. Every can sec
the newspapers 6ea daily and weekly with elab crate
announcements of new concerns, but few, perhaps,
have an idea Of the aggregate. large number Of
the projects for apparently useful objects, and
even those 60 be carried out in foreign countries
and which, it. might be supposed would be taken up
by local capitalists, may, under honest adminstra
tion, yield good returns The very same might be
said, however, of the worst periods of former pecu
lation and excitement. There was seldom con.
the question then, as now, becomes narrowed into
circle remote from such considerations The main
points that present themselves are: Hrst, whether
the capital is to be sent out of the country
and secondly, whether the means exist to ac
complish what Is proposed. 1t has usually been
estimated that the surplus annual income of the
United Kingdom Is some thirty to forty millions
sterling, and it may be well to inquire whether
We have exceeded that limit, still bearing
in mind that the most material matter is, how much
Of the total will be sent abroad, and how much
distributed here In five months, according to Q Ia
buar statement in the Morning Chronicle, l53
companies have been projected, than one per
diem. This is between the Is. Of June and the end
Of October ultimo. The total capital asked for IL
about G42 0C0 600, and the deposit El2, 600, 900.
The British railways do not absorb above million
OF this deposit, and a. many have not been paid
upon nor are likely to be, We may conclude that OF
the million We could fairly strike ono half This
leaves the total sum at present locked up for new
british railways extremely moderate, and consider
ing that no further apaounts will be wanted until
acts Of Parliament are obtained, and that when the
works are commenced, the payments will be gradual
and extended, there is not much to find fault with
here. The Legislature must be left to perform the
wedding pro ,ess, where rival and incompatible lines
are submitted, and it is we'll known that some Of
these can scarcely geta share taken up for the simple
market at discount. Guarantees alone seem tempt.
alton. The foreign railway schemes are much more
formidable Those bought out within tho five
months named represent over fourteen millions Of
all the colonial lines including the capital
quired for the East India Railway, need less than
three millions. with deposit Of about ESQ 00O
Our readers may judge, however whether this con-
vey an adequate notion of the drain we have to ap
prehend when they glance at Stock Exchange
share lists. and learn from the city correspondent
the enormous business that is doing in French and
Belgian shares, large supply of which has un-
doubtedly been sent ovor Ag gain, there are many
American railway shares taken up here, though
bonds form the staple for dealing Perhaps it is
near the mark to assume that within the last few
months two three millions Of additional capital
has been subscribed and invested here in United
States Bonds; but our great firms, such as airing
and Rothschild manage these things so quietly that
il is difficult to make even an approximate estimate
We know that Mr. Thomas Barring, now in America,
is actively engaged in entering into contracts, and
without saying one word against the nature Of the
security, which We believe is for the most part ex
cellent. we ask again will our surplus means allow
of su: wholesale participation in good things II
we could pay for the greater portion in calicoes or
hardware, the difficulty would be solved.
From railways to banks is a natural transition,
These. fortunately to have their seat of opera
tions principally in cur colonies. One or two excep-
lions could be named their total req 1reme being
half a million, but to such, we imagine, few will
contribute. the direction Of one being purely foreign
Mining companies it is less easy to speak Of They
must all be or less Of a speculative character
and probably few more than those started for
encouraging gold exploration, while to the steam
navigation companies we may give unqualified ap.
pIovsl, and to the miscellaneous undertakings
guarded consent, according to ther merits.
Foreign loans complete the catalogue viii n we
will enoesvor to reduce to form