The New York herald., 1879-10-29

which they did not know the value The return of
specie payments having opened their eyes gave them
fresh confidence. and they began TO anticipate
step by step 1t occurred. They found the
old equality between paper and ihe royal
yardstick' re-established. and with it came
| contemporaneous improvement in every de-
partment OF business. Prosperity showed itself in
the opening OF mills and mines; IN the increased
demand for new goods and the clearing out of the
old that since 1878 had burdened the shelves Of the
| merchants while waiting for market. The earnings
! of the sound railways were TAR beyond what the
directors themselves anticipated. and they have so
far improved that there is not one of them which
does not show gratifying increase over the
! ings of last year..
HAnd whs,, in your judgment. Mr. Boecock.
"Chiefly the influences have stated. Money has
been set in motion to degree that strongly coa-
trasted with the dearth and tshtness which existed
| a few months ago. The agrcniturist and mechanic.
| the commission merchant and shipper have found u
sudden outlet for their industry. and the specula
tors-the who seek to get quickly rich by their
ventures in the exchanges OF the country--were
prompt to seize the opportunity T., apd give i'm,
| petus the movement The consequence
has been influx of business that astonished the
oldest legitimate brokers or Wall and Broad streets
Such speculation taking into consideration ITS Wv;
rious characteristics has never. venture to say.
been known in our financial history
''What are some OF the characteristics TO WHICH
| you re.er?'
well, would mention incidentally the almost
feverIs haste with which the public have taken old
stocks off the hands OF brokers. Then, again, there
has beer an outgrowth Of confidence il favor OF
here ofore neglected good securities. For instance
While the legal rate OF interest Is six cent nves-
tors are gladly taking at the present figures shares
that are paying seven per cent and earning ten.
which only a few months ago could be had at half
the price believe they prefer this class OF invest
ment to bonds and NOR cages"
"But do you recognize no danger from this appa-
| rently blind exhibition of confidence?'
"Oniy in this-that eventually. as has been dono
before certain outside operators, taking advantage
of this exhilarated condition may succeed placing
| rotten securities on the market open the way to
| Cent people and as has been done before open the
| way to gigantic detalcations. Wnen such an event
the market Will 80 to pieces and the good and
| bad portions OF our fabric Will alike tumble into
ruin
'Did this upward movement begin with any par
| ..Not that recall at this moment The peculiar
sympathy that exists between all good stocks
| Exchange caused them to less to-
gether The sympathy refer is felt always
temporaneously. but results from certain changes
| The movement of the crops will affect certain
lines railway. while ut another time an advance
the price of coal iron will produce sharp
iron. Last year it was, think, $42 a ton; it is
$54 and $50 ton 1t is said there is scarcity of
coal at the mines. Whether it be so or not an ad-
of fifty cents per ton will enable the several
companies to pay dividend on coal stocks. So
that. you may observe. sundry factors contin
ally at work in producing the financial conditions
that exist around u.s.
II understand that the present animation in Erie
is due to u prevailing belief that Mr.. William II.
Vanderbilt has secured a controlling interest in
the road and. in conjunction with Mr.. jay Gould.
of tho West"
"Reaily." said the speaker. with laugh "you
know much as The street Is always full OF
gossip. and men gamble on the points they get.
and believe according to their degree of gubility
Whether the story Is true or false neither OF these
gentlemen is likely to show his hand"
pricey"
1T has unquestionably improved in value, and
there good practical for advance in its
figures outside of mere speculative operations. 1t
generally supposed that investment in it has been
confined to few parties. This not the fact The
stock has been widely distributed and thousands OF
holders are retaining it for higher figures"
i
prices on the general marketY'
Frankly, from my present view of affairs. do.
believe that q number OF good stocks have large
margin of advance before them, and yet am sorry
to that portion Of the public. new and inexpe-
making money accidentally one day and surely
losing it from natural causes the next day."
"Have you any other information to impnrt?
'Ony this, and. as You journalists say. I'll boil
it down.. The great rise in stocks is due to several
causes. l. The creation of new capital. Our pro-
ductons having been large for three years past aud
great economy practsed. tho surplus grew to great
chase OF our bonds from abroad ana since has been
seeking other Investments. 2. Resumption of
specie payments. This gave confidence to capi-
talists. made everybody feel that there was lower
depth to fear and that Il safe to experd money
and make improvements. The consequence was re-
newed employment tor labor. ). We learned to
produce cheaply, the result of forced economy
teaching to make better of our labor and
materials. 4. The greater ability to consume de
veloped scarcity of products; prices ut ad
vanced. and for the fl rst time in many years manu-
facturers made profits. production was increased
and. more labor being employed. a general good
feeling produced. Having. then. the capital
resulting FROM large production and economy
the ability to produce cheaply, sound monetary
system open to the money markets Of the
world large consumption Of products and tull
employment of labor naturally condition of pros
perity follows. based upon more solid conditions
than ever before. and the public recognize it, as
everything upward. 1t must not be forgotten that
the shortness or loss Of crops in England. France
natural products; that the result. which comes
from It, must long be felt; the balance of trade is
country is only on the threshold Of prosperity.
Everything sound in the way Of securities will not
look of affairs will continue to advance"
MR.. JAY GOULD.
The reporter found it impracticable to obtain
an interview with Mr. Gould. either in his
Office or at his home. his time being
occupied. The ruinors concerning this gen.
nor denied. In quarters it is alleged that he
has been large seller Of Erie. and is therefore
longer identified with its interests. In other quar-
ters it is urged with equal tenacty that his large
interests in the Union Pacific, Kansas Pacific, Kansas
| CITY and Northern Wabash and Canada Souther rn
railroads make it necessary for him to have con-
trolling influence in Erie and that. therefore. ii DIR.
Vanderbilt has any direct or indirect interest
therein. Mr. Gould must be side partner
MODEST BROKERS' VIEWS,
1t is curious fact that few OF the brokers of Wall
especially when they couple Herewith the name of
| prominent operator who may ut some time give
them IA share of his business. One was found. how
who did not hesitate. with the above reserva-
ton. to speak as folows:-
This thing was started about two months ago.
1t really had its incipiency when Mr.. Vanderbilt
went abroad. have not tho least doubt that when
abroad he was approached by the trustees of the
English shareholders to ascertain whether he would
not accept the management, and believe he man
ifested his Willingness to do He came back.
| commenced buying and then telegraphed his decis-
| ion."
"Do you think Gould and Vanderbilt working
together?'
al can't help 1t. The drop in the stock to-day is
only some of our stock jobbing business"
"How do you regard the business of the street?'
81 have never seen anything likei On Saturday
$4,000 shares were sold. the largest number that
changed hands IN the history Of the Board,
and few days before $4,000 shares were