Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-16
'Ex-dividend.
WALL STREET GOSSIP.
Predictions Of n Bearish Market This Week
Tho European situatIOn.
Special to John M. oakley 8 Col

Special to John M. Oakley & Col
NEW YORK, February 15-As to railway
earnings the Financial Chronicle figures for
January are very gratifying. They show gain
Of 81 4003 O39 or l321 per cent on 154 roads. This
comparison Is strengthened by the added fact
that in January. 1889, the earnings on 1SS roads
were s23O9,922 or 96l per cent greater than in
January, 1888. Unfortunately current increases
In earnings of roads do not imply current in
crease in the market price of their shares
This fact has been demonstrated recently in
England, where the trading in railway shares
has declined in price in face of increased traffic
and increased dividends,
Tight money and increasing wages are tire
chief causes, but 1t is fair TO assume that even
had these causes been absent the market would
have Neclined, because of the discounting by
spectators and investors of the favorable out
look for increased traffic, and dividends pre-
sSnt last autumn. In the month of January
shares Of the Great Western fell go per cent
Great Northern "a" 31< London Brighton and
South Coast "A" 81. London Northwestern
81, Metropolitan 69k Midland 3H Northeast
ern AZ, and South Eastern deferred 81, etc.
Inc foreign financial situation is complicated,
and our clients cannot complain that we have
SHOWN any lack Of enterprise by failing to dis
cuss matters Of European finance. We have
written more or less about every week for three
months, and we expect to keep it prominently
before our correspondents until its threaten
ing features shall have disappeared. Our
securities have been coming back to us on
every steamer for over two months, and the
foreign buying Of the active shares In our mar
ket has ceased,
Our Paris correspondent writes: There is no
tendency in this market to increase dealings in
American securities. 1t may occur that the
agents OF London brokers at the Bourse in
duced SPECTATORS TO buy Eries or Readings
when there is something in the wind, but such
operations are by no means widespread, and
are not generally attended with good results.n
The channels Of speculation in London and
Berlin are absolutely clogged with the mass OF
issues that have been 'spawned'' during the
last two years. and while no serious distur rbance
may result 1t is probable that twill require
very delicate and prudent conduct on the part
OF the great finance houses at these eenters to
prevent collapse. The Bank of England rate
has been per cent larger than at any time
within recent years; in fact, 1t is six years since
1t was so high at all, and so far, while attract
ing some gold from the interior, it has abso-
lutely failed to bring in gold from the outside.
1t is true that ten days ago the bankers inter-
ested in preventing excessive rates in the open
against their speculative plans brought a
million sterling from Prussia, but that was a
special operation. We have two private letters
from Lombard street from men of the highest
not quote because 1t would be breach of
etiquette IN private correspondence, who fully
discuss the features of the situation. We
merely cite this tact TO show that our ideas as
to the European financial situation are not
wholly derived from foreign and Domestic
newspapers and Journals.
With the almost phenomenal indisposition Of
our people to speculate in any of our home
market, we are agreed that the bears have
more encouragement than the bulls. We want
to be bullish, because the greatness of our re-
source and heavy traffic Of our roads ought to
insure continued prosperity We believe that
the painful deadlock in our market Is more
likely to give way to break than rise. We,
therefore, may announce ourselves as bearish
on the prospect of next weeks market, espe-
cially on the grangers. We do not expect any
serious decline in the Southwestern shares.
There was big crop of cotton and 1t sells at
high prices, and there was big crop of wheat
and corn, but it brings lower prices. The South.
western roads have had their troubles and are
now getting pretty well out of the woods, while
the granger roads seem to be running into new
difficulties and competition.
The bank statement to-day was disappoint-
ment, and we were induced to think it would
be better by remarks to-day by bankers, who
predicted a good statement The increase in
loans is unexpected, the loss Of cash is $780,
700. Some of this has gone to Boston and the
interior, and the rest to the Treasury.
Sugar Trust doomed this morning to about
20 but It broke about 21S points. It Is gam.
bling counter, simply that and nothing more.
Illinois Central has made fresh cut and this
hurts the grangers. Louisville and Nashville
sold exrights, worth about "A, but 1t lostits grip
Cotton OIL was weak on an injunction obtained
by q stockholder in the old company who OBJ
jects to the transfer of the trust TO . corpor-
alton, and asks for an accounting and re-.
ceiver.