The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-05-20
American Securities AbrOad-De-
faults and the Cause.
THE STOCK MARKET TODAY.
Prices Temporarily Firmer-Have
They Touched Bottom?
MONEY 8 AND 4 PER CENT.
Gold Steady-Railroad and Government
Bonds Unchanged.
WALL STREET

Bonds Unchanged,
WALL STREET,
TUESDAY. May 19-6P. M.
II Ii not o matter for wonder that American
securities abroad, OF certain class should be
held in contempt or that the parties investing IN
them are tempted to embrace in their doubt the
good as well as the bad. statement has been
recently published which shows that Holland alone
has made sixty-1ve distinct investments in Amer
lean railroad securities, the par value OF which
aggregate sir 600, besides investments In real
estate loans amounting to $S50O,000. The total ID
upwards OF $125, 100000. Analysing the report,
however, 1t appears that although the defaults on
the lst OF January, 1874, amounted to $64,16o00O,
or 43X per cent Of the WHOLE and that $13 100 600
are likely to be subject to default hereafter there
scarcely OF these securities which would have
successfully found market anywhere In the United
States. Wall street refused them the capitalists OF
the country elsewhere refused them, and 1t Is
only the
BLIND FAITH OF FOREIGN LENDERS
in American promises to pay that has cost them the
loss OF which they complain. Upon them alone
rests the blame, II any there be, OF giving credence
to statements not backed by approved figures and
prospectuses Endorsed by the highest commercial
authorities Of this country 1t Is to be regretted
that such q condition OF analrs exists abroad, for
the influence cannot but prove pernicious. Sharp
practice OF the kind instead Of being branded here
as absolutely dishonest, is too often alluded to
quite approvngly as "Yankee smartness" or
yankee shrewdness," and this is one reason why
the nation, or rather the national morality Is held
responsible and the really good bonds OF the coun-
try are brought under
THE BAN OF FOREIGN CONDEMNATION.
II is true that few OF our railroad corporations
are not Just at this time in condition TO make
the most favorable exhibits, for the panic caused
prostration from which there has been no recov.
cry; but there can be but little doubt that II time
Is allowed for recuperat1on our best securities win
resume their old place and dividends will be
promptly paid at home and abroad. It is a serious
lesson which the foreign bondholder has learned.
Let him profit by 1t In the future BY exercising
greater scrutiny over the securities which he is
invited to accept. Fortunately, however, not all
the swindles emanate from America. A signif-
cant thought In this connection Is that even in the
hush times talked about by Morton and Logan the
bonds offered found little or no encouragement in
this country. Many Of them were regarded as OF
the wildcat" species, and the promoters, finding
no market here, were obliged, from sheer neces-
sity, to seek locality in which their weaknesses
were unknown
THE STOCK Market
In the majority OF shares on the list stocks to-
day opened shade better In price than that at
which they closed yesterday, and the gain was
well maintained. NO evidences we're offered, how
ever, Indicative Of permanent strength. ana Q
general review OF the mind OF the street fails to
elicit any well fixed confidence in the future stua
tion. The fact seems to be accepted that prices
have not touched bottom and are gradually tend
ing downwards, although the process may be nom
time to time qualified by fluctuations. 1t is al.
frou thof Tho
market has no self sustaining power, and depends
not so much on the intrinsic merit Of stocks as
upon the artificial agencies employed to make
IN advance On the other hand it Is equally
clear that when sharp pressure is brought to
bear In the downward direction, the result IL
prompt sympathetic, and, as It were, carries the
street by storm. In other words. the market, BY
gradual approaches, appears to be reaching new
and more substantial basis-One which attained
VIII enable brokers and their customers to take
fresh start and achieve more satisfactory results
Up the close Of the day the tactics OF the bears
had not changed. We note In this connection the
existence OF an immense short interest," as indi-
Gated by the loanng rate for stocks two and three
per cent In terest being paid for the currency while
the rate on adequate margins Is four per cent. 1t
will be seen below that the majority Of stocks
closed at the highest prices of the day-a fact which
Temporarily encouraged the street. The market il
In q condition, however. that requires the exercise
of the utmost caution, especially on the part OF
those who are not familiar with its ways. The sum
total OF
TRANSACTIONS
was only 1851 shares, which are distributed as
follows:-Western Union, $4,000; Lake Shore,
23 5OO Pacific Mall 19.600; Union Pacific. ~, 800
New York Central, 1870; Northwestern, common,
5000; ROCK Island, 1920; St. Paul, 5000; Wabash,
5000; Ohio and Mississippi, 500; Panama, l,316;
Erie, 500; Atlantic and Pacific preferred 767;
Northwestern preferred, 100; Cleveland and Pitts
burg, 500; American District Telegraph, 900.
RANGE OF PRICES.
Western Union opened at 10, sold down to 69H,
thereupon commenced to improve and closed ct
u 7OX. Canton was registered at IS q 60,
offered and asked Delaware, Lackawanna and
Western closed at 107 Q 1O7k. Pacific Mail opened
at Ex, advanced to AK and closed at AK. New
York Central sold at o6X 90 ok Wabash, SEX q
SO s5X o Soy; st. Paul, common, S2k Q SIX q s3k;
preferred stock closed at 81; Lake Shore, 74X
TAX q 76X 76X; Ohio and Mississippi, 22X 22x
23k 2sk; Erie, S5h q S6x a6H; Rock Island,
s5X oak q % o 96X; Northwestern, common,
40K o 40x o 3ox 4oH; Hannibal and st. Joseph,
70 20 o rs; Panama, 1o4 loSK 10A.
HIGHEST AND LOWEST.
The following table shows the opening, highest
ami lowest prices Of the day.
opening Highest Losoest.
New York Central. 96x Blk 96
Harlem. .12sn 12sh Hsh