The daily gazette., 1881-06-06
Tho Week I'm Business Circles.

The Week I'm Business Circles.
The steady improvement of trade and
industry In all parts Of the county has
continued during the past week to stlm-
ulate capital and enterprise into activity
at all our commercial and financial oen-
tres, and especially In New York. We
last week chronicled the efforts ofcsrtain
speculators In this city to create abroad,
and especially In England, the impres.
sion that the rise In prices whieA hrs
been so marked feature Of the present
year on our stock exchanges is unsup-
ported by any genxine Development Of
the national wealth. But the "bears'
| In railway and. other securities and the
"bulls" In wheat have been rowing up
stream against steadily gathering cur
rent of general prosperity which they
are powerless to resist.
The United States debt 10 little more
than half as large as II was fifteen years
ago, and the interest received, upon the
money Invested 10 the United States
debt at the present prices OF the securi-
ties and the present rates Of interest is
very much less than half Of whatit was
then. In England, also very large
amount of public debt has been paid OF.
The Saturday Repie,o estimates "the
actual amount .of the English funds
now IN the hands "of the public at very
little more than e500, ,O00, 900 sterling" !"
Italy also has ceased to be . borrower.
hes small surplus revenue aad has
sent commissioners TO Parls to consider
bow 10 build silver bridge for her to
the resumption Of specie payments and
when Fl ance the other day sought TO
raise relatively small state loan the
enormous subscriptions which poured In
upon the Finance Minister showed how
vast 10 the accumulation Of new.
wealth seeking investment In France a.
so. 4
AT this moment, indeed, the great and
steady rise In the price of all good cor
porate securies and foreign loans on the
Paris Bourse 10 attracting as much al
tention In Paris as the upward move
ment in Paris attracts here. But IL is q
more scientific and intelligent attention,
we are sorry to say. "This phenome-
nOn." says the Revue des DeuI M0ndes
IN It's last Issue, "is 70 be explained by h
reason which has nothing accidental
about 1t. This is the steady and persis-
tent lowering Of the standard Of capitali-
zation Of revenues all over the w0 Id
This universal tendency has 10 doubt
been sustained by speculation. But 1t
Is quite rs certain that it Is to this ten
dency mainly and not to speculation
that the persistent rise In corporate val
ues must be attri5uted-that this ten
dency still justifies that rise, and that II
warrants US In expecting s.ill greater
rise hereafter" NoLbing cal be more
certain than this. A corporate security
which pays ! per cent, for example, isl
either a sound or an unsound security.
If IL Is an unsound security 1t Is not
worth even one half as much as Gov
ernment security which pays per cent.
If IL Is sound security, why Is II not
worth twice as much as Government
security which pas per cent? .e a
During the month Of May there came
into this country more than 10000 i'm
migrants, and the indications now are
that this enormous influx Of capital In
the concentrated form of human energy
and Intelligence will be kept up steadily
for months to come. II is as idle to at
tempt to prevent the inflow Of European
capital in the form OF money invest
ments in the securities of country
which draws thus 70 itself the blood and
lite of the Old World as 1t is TO attempt
to check this mighty human tide.
The bank exchanges a. the different
financial and commercial cantres Of the
C c)untry afford the best criterion OF the I,
volume OF trade, and these during the
past week have been simply, enormous,
In TACT in some instances unprecedented.
The bank exchanges at New York have
scarcely ever been exceeded, consi dering
the volume of Stock Exchange transac-
tions;at Boston they were never so large,
an increase Of over 100 per cent.
as compared with the corresponding
week OF last year, and at nearly every
other trade and money centre the ex-
changes show important gaius, These
facts, indicating clearly enough that QUE
classes are actively employed
at nearly all points, are happily unae-
with any symptoms Of that
among the manufacturing
and industrial classes towa ards overproI
duetion which too frequently manifests
itself under the conditions Of great
abundance Of money and ofeasy credits.
The weather influences during the past
week have been favorable TO the crops,
which telegraphic sdvices from the great |
sections report TO be |
greatly improved by the recent alterna-
lions OF rain aud sunshine. H
Our transportation interests are doing
more than well when the fact Is taken |
INTO consideration that In 1880 the most
were inclined to look upon the
railroad earnings Of that year rs alto
,ether exceptional and not likely to be
squalled for many years to come. When
iull returns for the month Of May come
II 1t will be seen low erroneous were
he predictions then made. The gain in
railroad traffic Is not due clone to in
.reased mileage but also TO the steadily
Increasing local business resulting from
he rapid settlement and cultivation of
ands hitherto unproductive, and to new
rafic arrangements and more esono.
nical management of the properties.
1T 10 gratifying TO learn that Postmaa.
el-General James has already effected
aving of $3.50. .OO0 a wear in one branch |