Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-07-28
WALL STREET.

Midsummer activity in the stock market
is something new in Wall street. Usually
bulls and bears quit their fighting before the
first of July, and leave the market alone
while they HE themselves to Saratoga, New
port, or the mountains. The market thus
left to itself usually declines through the
hot weather, and Is in prime condition for
an advance when the hungry operators re-
turn from their wanderings. This SUNNI or,
however, affords marked exception. The
great advance in prices last autumn az fol.
lowed by great decline this spring. Quo
tations went down, until in many stocks all
curitie5 and wild cat stocks alike felt the
blow. Western Union, that was paying per
cent. dividends, with prospect of or 8, sank
from 116 to SO. New York Central, that
was an assured per cent stock, with earn
ings sufficient to warrant it's being made a
10 per cent. at any time, was lowered from
1877 to 122. Lake Shore, which was then
earning the money that has since been paid
out in dividends at the rate of per cent,
was stamped down from Ill to 80. Pacific
Mail pegged down from 81 to 20, Wabas
from 40 to 20, and the rest of the list in pro-
portion. There was only one reason for this
great decline, and that was that Jay Gould
wanted it so, and manipulated the market to
get 1t. He made money tight, slandered the
growing crops and took advantage of the
weakness of iron interests to spread yarns
that the business boom of the country was
played out. Mr.. Gould can do very much
as he pleases with the market, and he never
was more successful than in this instance.
About the middle of June the tide turned.
Mr.. Gould had made immense profits from,
the great decline, and he was prepared then
to make immense profits again from rise
the crops were discovered to be in prime COLI
dition; suddenly 1t Was given out that slug
gishness In general business was the very
thing to send stocks flying upward-for
when capital could not find per cent. in
terest in business ventures, what more ma
tural then that it should seek dividend pay
ing railroad securities that would return
and per cent? Suddenly it was discover
ed that thousands of immigrants we're land
ing daily on our shores; that the national
debt was being paid with marvellous rapid
ty; that money was easy; that the country
was not going to the dogs after all; stocks
began to improve; they have continued to
improve ever since, until nov the high prices
of January and February have almost been
reached again.
This early summer rise in stocks has diff
fered from others in that it has been a. tended
with very little excitement. 1t is onl, re-
Gently that the public has taken hand In
it. The regular Wall street operators had
things all to themselves in the first part of
the advance. for the stock buying public had
Hol T., Ill H., h.
held sloof. But it has often been remarked
of the public that it comes in at the wrong
time to make money in the street. Con
tinued advances only in prices attract its at
tention. A sharp rise or sharp decline are
remembered for day only. But let your
amateur Spectator read for two successive
weeks that things are steadily booming, and
he catches the fever and jumps in. So with
the present movement. The advance has
been continual for a month. It looks as
though 1t might continue another month.
The flies are returning to the sugar, and
Wall street is as lively as it is in November
or February.
We have said that there was no reason for
the great spring decline in stocks; but there
is reason for the present advance, and that
is the general prosperity of the country.
10 per cent. larger than those of last year.
which were phenomenal. The European
crops promise little better than last year,
when they were poor. Indications point,
therefore, toward European demand for
American grain. Again, the development
Of the country, as limited at by the census
returns already In, must largely increase thu
country's consumption of food products and
manufactured articles, and these must be
transported by the railroad companies.
Largely increased business and largely in
creased earnings are reported by every trunk
line railroad, and these must continue so as
long as emigrants open up new territory.
Then, too, money has become drug in
the eastern market. Three per cent. could
not be obtained for it here last week. A
railroad stock like New York Central, that
is paying eight per cent and is abuDdantly
able to pay ten per cent--for the company
has $12,000,000 lying idle, earnings of the
last two years after the dividends were
paid-should, under these conditions. be
worth at least $50, and consequently should
be In demand at present prices. The lead
ing railroad stocks are really worth the
money as an investment.
But these considerations did not prevail
when Gould and Keene wished to depress
prices, and they are not likely to prevail
after the profits of the present rise have been
gathered In, and another decline is wanted.
The market is practically at the mercy of
three or four leading operators, who do with
it as they please. just now they are batting
the public in that they may sell to them
some of the stocks they themselves pur-
chased at low prices.
The movement, however, begins to attract
much attention, and the Volume of business
in the street is very great. Hundreds of bro
kers who desire to 90 to'the various resorts
are compelled to remain ut home, because of
the press of orders, and many operators re-
main to reap the harvest offered by the steady
advance in prices. It is the brokers who
make money in the street. Margins may
come, and margins may 60, but commissions
60 on forever. The average of days business
nowadays is 100000 shares. The broker that
sells hundred shares, gets an eighth per
cent. per value, or $3.50 for doing 80, and
the broker who buys gets the same commits
sion. It costs, therefore, $2h to turn q hun
dred shares, or $4,000 to turn 100000
shares, and this sum is about the average
paid for commissions daily. 1t is distributed
between about eight hundred active mem
bers of the Exchange, which gives an aver
age of nearly 800 apiece. Or course some
of the larger commission houses get the bulk
of the business, but even the modest brokers
make 3 fair living. / saw the balance sheet Of
firm of smart young fellows who occupy