The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-07
IN AND OUT or WALL STREET
Tho week opened very duly and clos,

west the alternate frosts and thaws threaten to
injure the planting Of the winter grains.
All this caused brcadstuffs and provisions to
| 90 Up last week, and railroad securities to 20
down. On Friday. however. came the 0.O00,0O0
coup he Hedhe Of the Bank of Commerce, and
| this at once turned the tide Of speculation. 1t
il naturally argued that the great success Of the
conversion proves that the public begins to con-
slider four per cent. as n satisfactory return for
their investments consequently that securities
paying six and seven per cent, and not likely to
default in the future. must command largo
| premium.
That a new bull movement actually get in on
Saturday ii would be rash to assert as yet but
IL IL evident that the bear campaign has been
brought to n close. Even tho most obstinate
constitutional bears OF tho Twenty third street
party covered their shorts. so also did the
jews and the Germans. A well-known Teutonc
Spectator OF Exchange place has been large
purchaser ofthe coal stocks and Of the st. Paus.
which ho is believed to have beon selling short
ut much lower prices. AT any rate, It Ia through
his and his followers purchases OF the st. Paul
common that this stock was marked up to 40
on Saturday.
Mr.. Rufus Hatch also, who has kept away
-rnron the stoct-kpartet for moaths-past ~ &C.
count Of his intense bearishness. seems to have
performed face-about movement Discussing
tho new situation, he said
The subscriptions which close the per cent
loan. and which exceed by nearly three times
the amount unfunded. indicate that the mon
eyed men and Incorporated financial institu-
lions of the country are bulls on all speculative
properties The net March earnings OF most Of
the railroads. especially OF the Northwestern
aud the Erie. have exceeded the most sanguine
expectations. That the season is very back
ward and the crop prospects not at all encour-
aging cannot be denied. But the fact is not
likely to be admitted in speculative circles for
several months 10 come"
There remain. however few skcptical fnan-
cicrs in Wall street who maintain that this t40.-
100000 lump subscription is simply skilful
artificial coup Of John sherman. who. being a
large stakeholder in some Of the banking nst-
tutions. had unusual facilities for performing
it, and. being heavily Interested in the stock
market had excellent reasons for utilizing his
opportunities.
II he really thinks that It is In his power to
place money upon permanent four per cent
, basis. he Is very much mistaken" say these
skeptcal nnancers. The country Is a great
; deal too young. and too undeveoped yet to have
! capital down to any such low rate Of interest
T Money Is cheap now. solely because all business
Is stagnant But let there be a genuine revival
r Of trade. and his four per cents wont fetch
I more than eighty-nve or ninety. and that only
because they are free Of taxes"
, The great speculative features Of the week
l were Jersey Central stock and Eric second con-
p solidated mortgage bonds. both Of which had a
I rise Of over five per cent in two or three days.
I The upward movement in Jersey Central was
| caused by an extraordinary improvement in
the business OF the road and the report that the
4 property was soon TO be taken out OF the hands
i Of the receiver. Tho consequent covering Of a
II large short interest has, OF course. materially
y aided the advance In the market price OF the
q stock. II Is also suspected that Mr.. d. p. Nor
e gan. who has been for some time past a big bul
= on this stock. is manipulating a new Jersey
. Central movement in the London market A
n all events. a day two after his arrival in Eng
y land. the stock was marked up to 43+ on th'
ir London Stock Exchange. He seems TO have
/ assured hls frionIs that tho rtuck WOULD sci
l. above 50 before he returned to New York Blu
j such assurances should be- taken with a grail
y Of salt and a good deal Of circumspection. 70
y. the foxy old gentleman is the champion ske
!. daddler OF Wall street.
n. The second consolidated mortgage bonds o
= the reconstructed Erie road were a subject o
e general discussion during the week. as YER
= few persons know Of their existence till tEel
~ began TO be quoted on the tape at g. and Gs
5 These bonds are not even issued yet. The
80 are to appear on the London market on Thurs
* day next. and 10 be brought over TO New Yorl
n by the oath or 25th inst. Accordingly all tn
10 immense transactions which took place in then
ID during the week were made seller 3d." or II
III plain commercial language. " to arrive Tn
ID fact that sellers options were marked on tn
y tape led many people TO suppose that some
r. body was selling them short and. as is Away
IA the case when Erie is concerned. Mr. j. Il
ia Keene was declared to be the guilty party. o.
to being informed OF the rumor. he said:
at The lying capacities OF Wall street rea
or seem to be incXhAustbe. Far from selini
II. these bonds. have been for weeks past and an
u, still. a heavy buyer Of them. l consider ther
MS to be the best investment on the list at tn
AZ present price. They are intrinsically Just a
II good as any hrst-class six per cent. bond. an
~ at 81 or 6S certainly offer more points for a
IT, advance than any other six per cent. securit
IL selling at 80 or above. With the Erie commo
stock selling at 25. these bonds are cheap at 81
My private opinion is that when the presei
condition OF the reconstructed Erie Compan
"a becomes properly understood, the stock vi
sell NJ 80. and the second consolidated mortgap
m bonds al par"
~, The reputation which still clings 10 Eric IN
Nh caused many people to wonder what reason
~ have Of late induced solid flnanciers to becon
le- partsans OF this company. The answer
=, simple The reconstruction Of Erie is the rep
ms titon Of the old story Of the great English raj
M road concerns. They have all been bnnkrul
ON in their turn and they all pay handsomely nov
Ia On the ruins of many have been built up Il
,ye fortunes OF few
20 A careful perusal OF the Eric reports show
Ee that for the last seven wears its average receipt
IT. with the exception Of one year only have a.
m cccdcd SIS goo 000, The whole problem was To 1
Tor duce the working expenses. Tho narrow gsul
Ho and strict economy in the management ha'
eel solved it. According TO Mr.. Jewctt's statemeu
an the road can now be- worked MS cheaply ms Il
,r New York Central or the Pennsylvania Meth,
rs. Of which spends more than SO to 81 per Ger
IN, Of the gross receipts. Taking round figure
Nh Eric's earnings can now be confidently put
'p- slG0O00O0 and its expenses at $40 900 OO0. Tn
~ leaves balance OF s6O0O0O0 to cover fix,
me- charges the highest figure Of which. under Il
X; reconstruction scheme. is to bee reached in lSs
,,i ami to amount to s4315.00o. There is still !,
ed nearly $l70o00) for the benefit Of the stoc
nj holders.
,uru These figures come from the onlco 81 the cor
ed. pany, aud ought to be as Trustworthy as an
ry- thing in that line is likely TO be- HIGoIo