The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-02-23
FINANCIAL And COMMERCIAL.
A Plethora Of Capital With.
out Use.
RAILROAD INVESTMENTS AND DEFAULTS.
State Bonds---A Review of the Closing
Prices Of the Market
WALL STREET,

WALL STREET.
MONDAY, FeD. 20, 1875.
II is a fact which bears significantly upon the
financial situation that on both sides CT the Attain
&c and In all the large money centres may be
witnessed the anomalous condition resulting from
an abundance OF capital yet unemployed and
prevailing depression in trade. Whether the
cause for this peculiar state OF affairs exists alone
In America or Europe, or Is common to botn coun-
tries, Is comprehensive question That need not be
here discussed but the ablest political economists
agree that while the commercial word Is under
the influence Of such vast monetary changes as
are observable in France and Germany capital
will continue reflect more or less OF the fever
lshness thus engendered. When France returns
to specie payments and its bank can give to the
world q portion oil It's present immense hoard;
when Germany suspends It's withdrawal OF gold
for coinage purposes and completes its new sys-
tenn OF circulation, capital may enter upon new
career. and, In suffering less from
RAPID FLUCTUATIONS.
induce greater confidence among those who In
vest either In speculation or legitimate trade.
America. however has contributed not little to
the unsettlement OF the financial situation. We
have "gOne to protest'' on an immense amount or
promissory notes. In the single item OF railroad
bonds the sum In default since January, 1874, Is
reported on high authority Of the extraordinary
figure OF $685., OBS 500, and the number OF com.
panies in default at l22. On the American bonds
held abroad the amount SAID to be TN default Is
sl4S OOO OoOl Is it not natural that, under such
condition OF affairs, distrust shoult be excited
and the capitalist shrink from mourning further
responsibility From statement in the EconO-
nltSte FrancGtS OF the 23d January we find that
the total investments OF capital In 1874 for rail-
roads are reported at $466, 100000 against
s964, 000 900 IN 1873. decline OF more than one
half In England the railway enterprises were
offered capital during the year 1874 TO the amount
OF En- 1914, 600, OF which sum the new railroads at.
tracted only f4.OlO,0OO, while the older companies
received f171s4, 800. These
FIGURES SPEAK VOLUMES
IN illustration Of the thought that everywhere in
civilized Chrlstendom the speculative mind has
undergone change with reference to values, and
Is guided by greater caution than ever In the Sc
lection Oh investment schemes. In America we
see the effect in the gradual 'dry rot" OF certain
active speculative shares, and still another phase
OF itln the strength with which really good Sc
curities like government and the old dividend
paying bonds are upheld. Yet the same general
uncertainty. the same locking OF capital that is
observable in Europe, will continue TO exist here,
until, In the grand round Of events, stagnaton Is
succeeded by business activity and the opening OF
the monetary reservoir. Gradually the country Is
moving TO this point; but 1t is everywhere evil
dent that when we start afresh 1t will be upon
lower pressure AS an inflated currency and the
mad use oft have produced depression, so Will
return to sound financial principles and the re.
dempion OF the pledges OF the public latin produce
strength. Millions OF workers arc IN the field
waiting upon this process Of change, and when at
last something like real values have been reached
CAPT al Will move hand in hand with growth. and
we shall enter upon q new cycle OF financial and
commercial PROSPERITY
CLOSING PRIcEs-sATURDAY
In the absence OF q market, yesterday being .
legal holiday, it Is only necessary to repro
duce, for reference, tina closing prices OF
Saturday. which are as follows:-Pacifc
all. 1917 saH; Western Union Tele-
graph, 72ss 7224; Quicksilver. 3ia IS do. pre-
ferred, 4Oj< 4oh6; Mariposa Land and Mining, 8 q
81; c., c., c. and L., "a a esq; Adams Express
1ol a l02; American Express o. q GAY; United
States Express, 6sA SO; Wells Fargo Express
SO s621; Chicago and Alton. 1O7 a lO7X; Cleve
land and Plttsburg. so11 sO%; Chicago and North
western, 431s 43S; do. preferred. 55h q Sc; chi
cago aud Rock Island, 1887 104; Milwaukee and
st. Paul. 3494 34X; do. preferred. SAX $50;
c., q. and ]. c., go; Delaware, Lacxawanna
ana Western, 1925 l0sH; ErIe 27ss 27X; Han
nibal and st. Joseph. 2Oa 2O5s; do. preferred, %
30; Lake Shore. TAX TAX; Harlem, 1913 1881;
New York Central and Hudson River, lOl 1917;
sppi, PAX 244; Panama, 11214 113; Toledo and
wabash, los l03l; Union Pacific, Al a Az.
ADVANCE AND DECLINE.
The advance compared with that OF Friday was
as follows and showed continued Improvement
along the general line:-
MISUNDERSTANDING and Pacific preferred, ~
Delaware and LacKawanna. q; Erie: "a; Hannibal
and st. Joseph, "a; Lake Shore, x; Northwestern
s.; OHIO ana a. MISSISSIPPI 4; Pacific Mail, ~;
Pamama, 4; , ouicSRsliSer' Rock Island =; St.
Atlantic and Pacific Telegraph *.
DECLINE.-New York Central, a.
The stocks that remained steady were c., C. ana
!. c., and Wabash and Northwestern preferred. It
WILL be observed that the frmness above recorded
Is In the face OF the usually depressing TACT that the
bank statement showed a decrease in the legal
reserve OF s4,si2575, and that these Institutions
now hold only 1891, 900 above the legal REQUIRE.
ments. The bank averages for the past two weeks
compare as iolows:-
Fec. ID. FEB. 20. Differences.
Loans. $2e3 III 200 1894 $50 100 Inc. ST. 900
Specie...... l5 1894, 800 IL, 200 Dec O. 24o 100
psposlis:::. 2,soo $50, sss 500 Dec.2sos,SS0
Crcnlation. 2a6l2,soo 22,5s4,400 Dec. 92s,500
STATE BONDS
The Governor Of Tennessee In his message aayo.
Gates speedy reduction, wherever practicable,
q the expenses OF the government, to provide for
payment OF all obligations OF the State at short
notice. BY this means, he says, due end maturing
indebtedness can be paid without additional tax.
alton.
The Comptroller OF Florida states that 100000
bonds OF 1873 have been sold by him during the
year 1879 There yet S17, 900 bonds OF 1857 on his
hands. During the past year twenty OF the bonds
pl 1865 and 1869 have been redeemed ana 1ty-nne
exchanged. All the issue are now cancelled ex.
:ept fourteen The interest and sinking fund tax
has realized $751; So from the assessments of 1878
and 1874 OF which sl7,s15 have been invested in
bonds Tor the sinking iund. and alter the interest
due to-day Is paid about $4,000 Will remain In the
treasury, partly In cash and partly in Comptroer's
warrants.
The government OF Missouri recently issued 300
iundlng bonds OF $1,000 each, numbering from
sol to 700 inclusive, authorized by the act OF March,
1874, which provides for the issuing OF funding
bonds the purnose OIL having the State indebted