The New York herald., 1868-05-18
FINANCIAL AND COMMERCIAL.
SUNDAY, May IL. 1893.

or the Impeachers versus the President was
d awaited the gold market was quiet during the
past week. and steady that the fluctuations were
limited to TX per cent-namely from 140X to 1897,
the closing transactions having been at Issx.
Opinions about equally divided as to the course
of the premium, but no important change
IN either direction was looked for under any pro-
babe political contingencies and the of Andrew
JOhns0n's acqutttal the eleventh article fell like
snownaKe In the gold room, although 1t was un-
doubtedly bombshel In the radical camp. The
Continued heavy shipments Of gold contributed to the
nrmness OF the premium, without, however, stmu.
lating speculative activity. The customs demand at
the port for the week amounted to 81, 4o4os7 while
the SubTreasury disbursed g. 4l0 600 in coin In pay
ment OF interest on the public debt. The speech OF
Mr. Garfield In the House Of Representatives on his
Oil providing for the gradual resumption OF specie
payments attracted very little attention, as his plan
at present mpractcabe the Treasury not being In
position to redeem Its notes Ia the manner
and moreover 1t would involve contraction to
corresponding extent it is not desirable That 1t
should be adopted under existing circumstances.
When the government and the country are prepared
xor such measure, however, 1t will merit considera-
tion for such scheme may be ultimately turned
TO advantage; but long is premature 1t would
be unwise to adopt it.
The market for government securities was on the
whole strong, but rather quiet, far as regards
speculative transactions. The investment demand
Tor small lots was, however, moderately active,
and there also considerable pur-
chases Of tenforty bonds and the fve.twenties
OF 1852 and 1868 Tor export, mainly ON account OF
those bondhOlders abroad who are reinvesting the
proceeds Of their May coupons. The domestic inquiry
Is mainly for the hvetwenes of 1857 and seven
thirty notes are being freely exchanged for them.
The probability thai tle new bonds Of 1868 will be
Issued minus the July coupons about the 1st Of June
Is calculated to stimulate into the bonds
of 1857 and these OF late have been larger than usual
The aggregate for the week being S5,04O,s5O. The
high prices now current for railway and miscella
neous stocks, together with the sluggish market for
them has turned the tenton of investors more
than ordinarily to United 5tItes bonds which, for he
interest they bear beyonl question the cheapest
securities in che country at the present quotations. The
suspense with which tile result Of the impeachment
trial has been awaited operated materially to restrict
transactions, and that 1t has practically termi
hated the public mnl is relieved and increased
activity In the dealn will probably be experienced
under which prices will continue to improve. After
the receipt OF the news OF the vote In the Senate
Saturday no session OF the board In the allotted
to governments was neld but prices on the street
remained unchanged and at the close the market
was dull but firm in tone
The stock market was dull, but on the whole steady
during the week, although slight fluctuations were
frequent in New York Central. Erie and the leading
western shares, and yesterday there was more
than ordinary frmness shown In the two first
mentioned. There is clique in nearly every rail-
way stock on the speculative list, and hence prices
ore supported without the cooperation Of the out
SIDE public or reference to real values. We have
several conspicuous instances Of this, prominent
among which Is Fort Wayne which, although paying
ten per cent dividends, has really not been in posi-
ton to declare dividends out OF its earnings since
the organization OF the company in lS63 The means
Tor paying these it has derived from selling its own
stock, and in this way the capital stock has been
Increased from about six millions to eleven millions
and half Last year its report shows that 1t sold
fifteen Thousand shares Of stock for the sum
OF $1,2l6O6O, while It paid i'm dividends
only 81, ,034,375. What do directors and stock
holders expect will be the ultimate result OF
this wholesale and systematic "wateringn of the
capital stock OF corporations It is obvious that the
more new stock there is Issued the the dividend
paying power Of the company concerned Is weak
led, and that II this policy is persevered in indef-
nitey 1t will be imposi lie for it to pay any dividends
in the END. The chicago and Northwestern Railway
Comr any has just followed the example OF the Mchi-
gan Southern in declaring ten per cent stock
dividend on both the common and preferred shares,
and the effect will be to postpone cash dividends
mach longer than would have been other
wise necessary. Neither OF the companies
referred to Is In a position to pay cash
dividends, and under such circumstances
1t Is gross mismanagement to "water the capital
stock, thus deerioratng the entire mass. The ex-
pertinent tried in Hudson River with Wall street
success for the price afterwards advanced in the face
bf 1t, because the Vanderbilt party held nearly the
whole OF the stock out of the market and bid up
Tor speculative eect but those who hold 1t are very
well that they pressed 1t all for sale 1t would
not realize Its merits anything approaching the
price at which 1t Is now quoted. The watering
system Is undoubtedly very bad one for st0ckhod-
ers In the long run, but temporarily 1t subserves
speculative purposes In Wall street, and OF all the
txatered stocks that float on the tide of spccula-
lion Fort Wayne, for its price, Is the most
watery, or rather inflated; but It is nevertheless
largely held by Western capitalists and little dealt in
now on the Stock Exchange. The prevailing none
tary ease favorable to the operations Of the bulls,
but the cques of late have attempted nothing more
than to hold the market steady While the bears have
been reluctant to put '.shortr contracts except
TO limited extent for quick turn At the close OF
business yesterday the quotations were as sub
Joined :-Pacihc Mail, el1s s13s; Ohio and Mssis.
eipp, 2sA a 80; Quicksilver, 29iz a 30; Western
Union Telegraph, 3sZ a 3s7S; New York Central
p2sX 100; Erie, o91 ds,s; Reading, eo'i oO5s;
aiichlgan southern se't so; Rock Island 95 as5,S;
northwestern, 67A 67x; Northwestern preferred,
XIX Tx; 1rt Wayne, 107.
! The money market was easy throughout at SIX per
cent to borrowers in good credit government
eecurites and other first class colaterals although
In the early part OF the week seven per cent was
asked In some instances. On saturday, however,
khe transactions at per cent, and in excep
tonal instances balances were loaned at four per
gent. The supply Of commercial paper Of the best
grade continues very light and It Is quoted at ca
per cent on the street, while the banks discount
Freely for their customers OF the legal rate. The
domestic exchanges are in favor OF this city and
1ikcly to continue until the bank deposits have
undergone further considerable increase, and
There will be no heavy outward drain OF currency