New-York tribune., 1886-04-26
MONEY md BUSINESS.

MONEY md BUSINESS
StagnatiOn in trade and activity in invest
ment were the Characteristic features of last
week. Neither stocks, grain, pork, cotton, oil
| or other products are wanted, but bonds that
promise a return are eagerly sought The plac
ing of new loan OF $1O,00O,00o by the Rock
Island and the shipment of several millions to
| Europe for investment in the French loan are
one side of the medal; the stoppage OF
hundreds of mines and mills and the partial
arrest of traffic on many railroads are the other
side Industry is much disOrdcred, and specu-
laton in almost every branch is dead, and
therefore the money that might be otherwise
cmplOyed is eagerly invested in bonds here and
abroad. The stagnation may be temporary, and
many of the investments may have tendency
to revive industry, but meanwhile a part OF the
capital of the country is going into permanent
employment and the results of that change will
appear hereafter
If the country has too many railroads, the
railroad managers have not found it out, for
they are projecting more with unusual zeal.
The Rock Island boasts that it is going to add
700 miles of road the Burlington is engaged
| in paralleling essential parts Of the st. Paul
! system and it is reported that the Northwest
ern is about to launch loan of $4,000, 600
| for extension building. At the same time the
purchase of the Gin cinnati, Hamilton and Day
| ton by parties allied with the Chesapeake and
| Ohio is expected to give q new outlet for North
western traffic by way of Norfolk, Virginia, and
! there is also announced ut Chicago a contract
| to move through freight by that route and the
| Hooking Valley. Whether the Chicago stI ike
was or was not settled without any concession
to strikers, as Lake Shore officials assert, it was
settled, and the Missouri roads are able to pub
lish very satisfactory report of their condition
and prospects. Railroad managers may not
realize it, but the fact that the moral influence
of the Knights of Labor has been greatly
crippled. and the confidence of the public and
of the men themselves in the organization seri-
ously shaken, while thousands of railroad
workers are now out of employment, is one of
Importance in estimating the cost of operating
railroads in the immediate future. For the
present, the disturbance and the small ship
ments from Chicago arc enough to account for
the stagnatiOn Of the stock market, and the
average price Of 80 stocks was slightly lower
on Saturday at S;5S As. In time the building
of nsw roads will hurt other railways, just as
the completion of the Lackawanna line now
diverts trade from older Eastern trunk lines.
OF all the grain brought to NewYork in March,
2415 per cent came by that line, against 1886
by the Central, 20 by the Erie, and 1925 by
the Pennsylvania. The inference that the road
is cutting rates Is not at all necessary; other
lines have enemies enough to account for all
their losses, even if the Lackawanna has made
no friends.
The immediate effect of railroad building is
to give increased employment to a great many
branches of industry. Cheap money thus
creates business of q certain sort, though it
may prove a very much disguised blessing in
the end. Last week $2,220,S3S gold went
abroad, the French loan being tho attraction.
Government increased its net gold 5000, ,S22
silver SG11,154, and legal tenders S2,512,571
in part because of the withdrawal of 81, 900 900
bonds held for bank circulation. The New
York banks reported n loss of S1,7SS, 100 in
reserve, but still have a surplus Of over
S13, 100000, and money on collateral is |
abundant. A loss Of reserve in the third week |
of April prompts unpleasant mem cries In
1878, the reserve increased only two weeks |
after the turning point in April and then de- |
cined and the stagnation III business and the |
failures of that year are not forgotten. In 1879
the rise in reserve after the turn in April con-
tinued five weeks and ten weeks in 1850, and |
seven weeks in 1881, and four weeks in 1882, |
and thirteen weeks in 1888. But in 1851 there |
was decline in reserve after April l, and that |
wear was disastrous. In 1885 the rise lasted |
eight weeks, but this year, after one week of |
increase, the reserve stood halting for week |
a id now has turned downward. OF course the |
causes are complicated. But one is obvious !; |
the imports at New York for the past three |
weeks have been S25, ,356,22 an increase of |
1O.7 per cent over the same week last year, |
while the exports for the three latest weeks |
have been only $l5, ,SS7,741, decrease of 1874 |
per cent compared with the same weeks last |
year.
1t is only week ago that another furry sent |
May wheat to 9J34 Saturday afternoon, but in |
spite of week of war talk, the price has not
cents lower while cash wheat was held little |
higher than week before. In about sixty |
days new wheat will be coming forward |
Meanwhile, there are persons still giving the |
world much valuable advice who paid 81 04ai |
for May wheat about year ago, and have been |
carrying wheat for rise ever since ut cost of |
20 cents, more or less. Only once this year 1t |
reached 96sl, in March, and foreign markets |
remain apparently ss Indifferent .as ever to |
speculative operations here. Corn has changed |
but little. while oats advanced ga cents. Pork |