New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-08-15
TILE ELL IN SECURITIES.


,rsos M one who has watched the building OF
railroads and the enormous addition to the list
Of securities in the market Nor has this de-
cline as vet euualed the advance which fol-
lowed the resumption of specie payments.
Only n part of the marvellous gain which re-
shifted from that event has been lost, although
the market has been dragging and dull and de-
c]ining for more than two years. Considering
that the actual value of many railroad proper
TIES has been seriously affected by the completion
of competing lines, or by very large ADDITIONS
to their fixed charges, it is not strange that
there has been some decline; the wonder IN
many cases, is that the prices have been so we'll
sustained.
For instance, the Lake Shore has closely
competing line which did not exist four years
ago. and is subjected to other strong competl-
ton. and yet the stock sold on Monday at
1854, whereas it fell to 90 last year, and rose
from CTS January 2, 1879, to 1854 in 1881.
Its value doubled in two years, and 1t has still
about three fourths of its highest value. Mich
igan Central has been affected by the same and
other competition, but it rose from 1854 jan
uary 2, 1879, to 1905 in 1880, and has since
declined to II last year, bnt sold on Monday at
S31s New-York Central has the Erie and the
Iackawanna extensions TO cut down its bust
ness. and is about to have the West Shore road
also. and vet it sold on Monday at 1144,
whereas it sold at 114ls January 2, 1879, aud
rose to 1858 the next year. The Lacka-
| wanna, too, which has part IL this recent COM
petition, rose from 43ls on the day of resump-
| ton to 11014 in 1880 and 131 in 1881 and
5Ol4 last year, and has not yet fallen to ltl4
the price at which it sold at one time last year.
| The Erie, beginning at % January z, 1873,
| rose to 527s in two years, and has declined 10
1884. but mainly because 1t has long been neg
lected in speculation. The Northwestern roads,
too, retain great part uf their marvellous ad-
| vance. ST. Paul rose from 363s on resumption
day to 1924 in Il S1 and fell to 96l2 last year,
but still brings 90 OF more Northwestern rose
| from 497a on resumption day to 1503i last
wear. and on Monday closed at 121. Illinois
| Central rose from so to 150l2 last year, and on
Monday sold at 1875. Union Pacific sold at
57lo in January 1879, and at 4S the next year,
but rose to 1898 in 1881, and has only fallen
TO s75s The coal carriers have also main
tanned great part of their gain; Jersey Cen
trail sold at 33l2 on resumption day, rose to IL
| in 1881, and has declined to So, though II
dropped last year to 63l4. Delaware and
Hudson rose from 80 in 1879 to 1l994 last
year. and has declined to 1O6l2. Telegraph
stock has been SO changed in amount that com
parison is not instructive; 1t sDld ut 94S4 on
resumption day; rose to 1878 IN 1881
dropped after the new issue to 76ls last year.
and closed on Monday at 76i2.
The principal difficulty in the stock market
has been with new concerns, which advanced
wonderfully in good times, but have since de-
clined. Wabash common, for instance, rose
from 221s on resumption day to 595s the week
before President Garfield was shot, but has
declined to 1854. Wabash preferred started al
about SO in 1879, rose to 96l4 in 1881, and
has dropped to 3034. Denver aud Rio 6 rande
started at about 81 In 1880, rose to 1881 in
1881, and has fallen to 3014. Texas Pacific
started at AZ in 1880, rose to 1888 in 1881.
and has fallen to 25ls. There are great
many stocks Of this Sort which were thought
very valuable in 1880 or 1881, but have since
declined severely, and the unhappiness in the
stock market is largely due to the disappoint
ment of people who bought these stocks wher
they were high, and wLo hold them still OF
have recently sold at loss.
1t was not sensible to suppose that the won
derful advance in prices which followed re-
sumption of specie payments could he wholly
maintained As to many stocks great de-
| cline was inevitable, and as to many more very
| probable. The decline resulted yesterday IL
disaster to one prominent firm. and I'M
doubtedy others have suffered considerable
losses But the world has not come to al
end because part of the speculative value giver
to securities in 1880 or 1881 has been lost
II is to the credit of the dealers and operators
in this city that the decline. which has now
; lasted for about two years. has caused but ont
important failure. In due time there will be
reaction upward, and we shall then get {
better idea what securities are really consd
cred worth. At present, many of them are
selling at very low prices because there is 4
prevailing indisposition to buy anything, bu
there is neither panic nor the prospect of I
, | panic.