The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-09-10
The following table will show the course Of the
stock market during the past week and month";

weekly review has been In favor Of the bulls and
against the bears. A demand sppears to have
sprung up for the speculative railway shares, all Of
which are wanted at higher prices than ruled
week since. This seems to be based partly on the
accounts of speculative inquiry for these shares in
the London market, where, by latest advices, they
were higher than they are here, the London quo
tations being equal TO 90 here for Illinois Central,
81 for New York Central, and 303 for Erie; and
partly on the strengthened conviction among our
own spectators that the great harvest of the West
ern States, and the general recovery Of that coun
try, will enable all or nearly all the well known
railway companies to resume the payment of divi
dends Well informed parties write from Chicago
tina, the full effect Of the harvest the business Of
the railways will not be felt till next year. At
present though the increase of traffic Is equal to
go 40, So and in some cases 100 per cent, as CON-
psred with last year, the roads are occupied ex-
cusively in carrying freight eastward. There Ia
little on no movement Of freight westward, and very
little passenger business. Next spring, when the
proceeds of the crop have been realized. it is
fair 70 expect that there will be an active
movement in goods going westward, and revival
OF passenger traffic. When this Is added to the
large grain freghts eastward-which win last, from
all accounts fully up TO next harvest-the com.
bned traffic will probably as Car exceed the pres
emit a. the present exceeds that Of last year; aud
even with moderate crop next year, there will be
no reason TO apprehend fresh suspensions OF dyi-
dends, or defaults on interest. These considera-
tons appear to be inducing men OF means 10 begin
10 invest money in Western railway stocks. Thus
far such Investments have been small. Railway
property has got such bad name that many per.
- 80.
OF = few hundred shares shrink from the thought
81 buying railway stocks q permanent invest
ment Il Is hardly likely that this prejudice viii
stand the test Of q steady recuperation in railway
business and a few regular dividends. In England
and III Massachusetts, railway stocks are favorite
Investment among the most prudent classes.
Even here though much money has been
lost by careless purchases Of this class OF
property II Is not easy to point out an investment
which has paid its owners better profit for series
Of years than New York Central stock or one which
In the future promises a more certain or q larger
income.
There are many stocks. OF course. whose future
Is prohlematical from the embarrassed condition Of
the finances OF the companies, and the fact that
their income depends upon the nature Of the har-
vest. A few OF the Western roads auctuate be.
tween aHiuence and bankruptcy in single year.
When the crops are good they make enormous pro-
fits and large dividends; whom the crops are poor
they make nothing. and sometimes fail TO pay their
expenses. Such property cannot be recommended
to investors who cannot watch It. The Erie stock
is in the same category. The reorganization Is
nearly complete. and by Il The company converts
a large proportion Of rs old debt into stock
and thus rids itself OF a large annual tax for
interest. II Is well managed by Receiver
Marsh, and probably earns more money Ia pro-
portion TO its gross receipts than il ever did
before. Bat whether h can, IN The next FIVE, six
or eight years, earn anything substantial over aud
above ia interest aud expenses, Is a problem
that remains to be solved. Even II the earnings
should increase very largely the road owes some.
thing over a million Of dollars for bank interest:
this must be disposed OF bctaTe anything can be
done for the stock. such property can hardly be
recommended a. yet, Tor permanent investment,
few carefal inquiries, and such close exam-
nation should DO the preliminary 10 every invest
uoui. vii readily enable The puhlis 70 discrim
nate between stocks which should only he pur.
chased by spectators aud stocks which may be
iasan for their permanent income. There are
s,oo,s On the lat q the Brokers Board which will
probably pay their holders nom ten Il dleep per
cent Tor some time 70 come very considerably
more Aan can be obtained by purchases ofsiste
stocks, good railroad bonds. real estate or mort.
eagcs. when his fact becomes generally known
thess socks win probably sell 20 hrk a. 20 pay na
larger an income than other investments. The
prize uvia viii fall to the lot o. TIC win AMI
the lar seeing.