The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-08-10

apparent IN THIS country. 1rue, . A"ieS Peg
ton of this wealth is represented BY government
paper Of various kinds. But 80 long as people De-
lieve in this paper, receive it as money, ana are
convinced that it will be redeemed in specie De-
fore very long, the effect ia the same as
the increased wealth of the country consisted
in gold. The question which is occupying
the attention of the owners OF all THIS
wealth is how to invest it. As q matter
of course, government securities will naturally
absorb large proportion. There can be no pos
sible investment, superior in point OF security W
government six per cent bonds, debt certincates
or 7.30 notes. But, as no prudent capitalist VIII
invest the whole of his means in one class OF secu-
rites, our newly enriched fellow citizens, having
placed a certain proportion of their means IN
governments, are compelled to look elsewhere for
income on the balance. And a careful survey OF
the dividend paying list has led most capitalists 70
the conclusion that after governments no invest
ment promises so well as sound railway stocks.
They appear to be as safe as, and promise to be
more lucrative than, State or city bonds insurance
or bank stocks. The leading railways whose stocks
are dealt mat the board, such as Central, Ere,
Erie preferred, Reading. Michigan Central, guar
anteed, Toledo Rock Island, Alton preferred, &C.,
present earnings continue, will be ten per cent
or twelve per cent stocks. No such invest
ments can be found outside of the railway Iist.
Hence the stubbornness of the market, IN
the face of heavy sales, to realize pronts,
and vigorous hammering by the bears. We are,
in fact, going through precisely the process
which Old and New England have both gone
through, in relation to railway property. Both
New and Old England witnessed period when
railways we're the only popular investment, and
every line which was graded and equipped was
deemed certain of income. To this era OF delu-
sion succeeded an era Of collapse, during which
railway stocks fell to an almost nominal inquire,
and nobody wanted to own or lend on them. The
third stage exhibited the railway listn Old as in
New England-weeded of impracticable and value
less railway stocks, and consisting exclusively OF
dividend paying shares, which rose steadily in
value. Now, in New England. there is very little
speculation in the leading railway shares. They
are mostly held at figures which make them yield
less than six per cent to their purchaser, and o
man who wants one hundred shares of reliable
line has to wait for the death of some heavy holder
to purchase. &c. in Old England, no railroad
stock which yields four per cent annual dividends
1S~Se~@
yield no greater income than consols. Capitalists
have learned that well situated railway property un-
der prudent management, is as sound and lucrative
an investment as can be discovered. The stocks Of
our great trunk lines and of our leading Western
roads are following in the same track. There was
time when Galena sold at 100 and Erie ct 96, in
gold, when neither OF them had any real claim to
public confidence az investments. To this succeeded
period when Galena went begging at As and
Erie at s, and it was as much as q merchants
credit was worth to admit that he owned railway
property We are now in the middle of the re-
turning wave If confidence. Before it ends rail.
way stocks will command very much higher
prices-in pxpportloh 70 their yiela-than city
State, bank or insurance stocks; and the stock Of
no regular dividend paying line, managed by mer
Of repute and well situated, will be for sale II
this market at or below par.
CITY COsESsERCIAL REPORT.
Nr 'ruRDAY, August So p NJ
..n,.s.,.. maoe Of so oDls. pots a. exc. AMI
pearls at SIC. = -. ,ro,o a.,erne.
BRKApsrurYs.-Flour was lover, with '''. 's $50
on the part OF holders 10 realize, Wills 90 -