Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-01-04
TEE SPECULATIVE MANIA.


Russian and Hungarian Corners.
New York, JAN 2-The year 1882 has
been one of enormous trade. The ex-
changes of New York have amounted to
S47,O1I. 259,S07. an amount never exceeded
except in 1881. But the extraordinary
speculation in securities in 1881 and the
high prices at which they were sold most
of the year swelled the transactions much
more than in 1882, so that the exchanges
not arising from such sales were probably
little larger during the year that has just
passed than during any other year in the
history of the country. On
the other hand quite unprecedented pro-
portion of transactions must be attributed
to mere gambling in products. Sales
of cotton in this market have not
been quite as large as in 1881, but the
speculation in wheat, corn, oats and oil
has been larger and moro mischievous than
in any preceding year. The sales of wheat
in New York in 1882 exceeded 65O,O0O,0OO
bushels, for the reported sales IN the pro-
duce exchange alone were over 647, 100000
Inasmuch as the quantity received in this
city was less than 100000 bushels, 1t is
evident that about nineteen twentieths OF
these sales were mere gambling transac-
tions; for large part of the wheat re-
ceived here is not sold at all, but merely
passes through on its way to consumers
abroad or in New England. The sales of
corn amounted to nearly 450,000,0O0 bush
fbo oY1ti
ty received. The sales of oats exceeded
100000 bushels, though less than 49,
100000 bushels we're received. Over 30
100000 bales of cotton were sold, and the
entire quantity delivered, both in future
contracts and on spot sales, was less than
100000 bales, 50 that gambling transac-
tions we're to those that may possibly have
been wholly for legitimate purposes as
sixty to one. In the oil market, however,
the sales were even worse. The over rail
reading was one of the most alarming
financial features OF the year. The
amount of capital diverted from legitimate
trade for the purpose of constructing rail
roads is. almost fabulous. 1t is estimated
that over 1900 miles of track were laid
during the past year, most of it without
any necessity. Taxing the actual cost of
construction at $4,000 per mile, we find
that sum of $132, 100000 has been actu-
ally thrown away; and keeping in view
that the capital isolations of such specu-
lative constructions is actually made at
from four to five times the actual cost, we
obtain the appalling figure of over $780,
100000 taken out of the community with
no chance of that amount becoming re-
munerative for generation to come. One
of the most striking illustrate ons oflthis
constant speculative construction is to be
found in the position of the st. Paul COM
pany. In 1875 it had only 1,400 miles of
track, and earned about $4,000 net per
mile. At the close of 1881 it had $3.50
miles of track and barely earned $1,75O
per mile, meanwhile the bonded debt has
increased to $88,OO0,O00, and the amount
of stock issued to $43,O0O,00O. To be able
to pay tie interest and dividend on this
amOunt the company must earn net S9,-
100000, which is some 25 per cent. more
than it ever earned in its most prosperous
years. IL those years its common stock
notwithstanding between $l5 and $40 a
share, to day its ductuation is from 500 and
S12O a share. That is the whole position
in nut shell, and in greater or less de-
gree the statement is applicable to many
other companies. No wonder that
the directors, of most such concerns
skip out or go short of their own stock.
IN some cases there seems to be nothing
that will sustain the price of the stock ex-
cept report that the active directors are
going to be put in jail, or at all events
kicked out. Such was last week the case
with Denver, which recovered from SO to |
4215 on report of this nature. Of the
stock brokers there are not many instances
of commission houses having paid their
expenses, yet, curiously enough, there were |
no failures of any Importance. This is
probably due to the influence of the great
boom of the year before, which filed the
pockets of the boys and gave them some
thing to spare for a rainy day. The rainy
day came and has cleared most of them
out, so that if next year the present
state of affairs continues there is no telling
what will become of the old glories of
Wall street.
The complaints about excessive power
which a few men have got, and which they
use to manipulate the market are growing
more and more bitter every day.
The total immigration to the United
States for 1882 at all ports was about 1885,
900. Germany sent $4,000; England and
Wales $1,000; Ireland 10000; Scotland
1900; Sweden $4,000; Norway $4,000;
Canada $4,000; all others countries $780,
900. The arrivals in the last three months
show a. decided falling off, those of De-
cember showing a decline of about 20 per
cent. Those who have been close observ-
ers of immigration for many years think
it has reached its maximum. 1t is be-
Heved there may be an influx of Russians
in the present year, and they are the
most enterprising people who come,
going Immediately to the West and estab
fishing new homes. Their powers of endu
rance are wonderful. The tide of immi-
grafton which has set in from the noun
tain districts of Hungary is beginning to