The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1890-10-07

NEW YORK, Oct. 6-[Special]-H
Clews' regular weekly letter contains
the following:
we have still to record an absence OF
any marked response in the larger
movements of Wall street, to the meas
ures OF financial relief adopted by the
Government The increase of SIo. no
600 in the surplus reserve shown by the
bank statement of last Saturday dem
onstrates plainly that Secretary Win
doms last eXpedient fully succeeded i'm
aftordlng an ample measure of relief ot-
the point where it was vitality needed.
And the effect Is plain enough in n nor
cent. rate for call loans and in the abuu
uance OF money offered on time loans at
per cent, and on discounts at same
rate Nor Is there any apparent reason
for expecting anything short of a reason
ably easy money market for the remain
ing months of this year.
But, Notwithstanding these adyan-
tageS. Wall street still lacks spirit. If
not confidence; and is tho large imitation
OF the active circulation has inspired
hope in any direction, that feeling has
not yet assumed any definite expression.
The Stock Exchange shows no activity
'>-ANN
ton into the supply of securities await
ing buyers may suggest some explana-
ton OF the situation. An Illustrative
| parallel worry directly to the point NAV
be cited from tho four years 1850 TO 1883
inclusive. During that period. 36. t5D
! miles of railroad were constructed. with
! the result OF an increase of 81 lS2, 600. 900
III tho mortgage of debts of the railroads
OF the country. This decrease in rail
\, ;.,l,
times the rate of the growth of popula-
ton within the same period had the
| eject OF abnormally increasing the sup
! ply OF securities seeking investors, and
| hence the great decline in stocks and
bonds that occurred in 1855.
1t is question deserving candid OK
animation whether we are not now
passing through Il similar situation. SO
far MS respects railroad investments.
During the four years 1856 to 1880 in
elusive. the mileage of the railroads
was increased 81, Sa5. with an addition
of Sl,063, 000,0 to tho amount of out
standing mortgage bonds. Although,
relatively, the increase of mileage and
| OF mortgage issues, within the last four
| years, has not been quite so great as
was that of tho previous period referred
to, yet it has been at double the ratio
OF the increase in population. 1t is not
unreasonable to assume, therefore, tn at
the creation of new securities within
late years must have been largely in ex-
cess of the absorbent capacity of invest
ors, and that consequently there is n
heavy current over-supply of invest
ments, some carried on the market and
more not, but large portion awaiting
sale and which can be distributed onIW
at low range of prices.
1t can not be said, however. that tho
present situation is so decidedly un-
favorable as that which eliminated in
the breakdown of 1885; for tho amount
of bonds issued during the last four wears;
is not so large as that of the wears 1880
to 1883, whilst the population is now
several millions more and the wealth of
the country much greater.
| we must consequently look for solu-
ton OF the present position of affairs in
certain amount Of liquidation That
solution seems to be now coming gradu-
ally. and appears likely to proceed and
cuiminate without any severe disturb
ancc. for apparently that is the way in
whlch extreme movements are in these
days adjusted.
This take to be really the main fac
tor, accounting for the stubborn inclas-
ITCHY OF the market and its failure to re-
spond to influences which would ordina-
rliy produce rise i'll prices. The mar
kct Is continually kept down by an un-
manageable surplus of securities, and
prices drop disproportionately when tho
smallest measure of support is lost.
Fortunately, tho general condition OF
trade is healthy, and there is nothing t,
disturb confidence in the stability of af-
fairs outside OF Wall street; which acts
rs an important check against any seri-
Gus declining tendency in securities.
The London money market verges
closely upon condition of positive strin-
| gcncy. The Bank of England lost nearly
el.000, 900 Of specie last week and the
! ratio OF reserve fell from Al to 81, while
the rate OF interest in the open market
rose to 81 per cent. Such a condition
suggests the possibility of relief being
sought Ill tho return of stocks to this
! side. with the double result of an adj
ditlon to the existing supply and pos
sibllity of transient exports of gold The
current railroad situation is not one ia
| vorable to the value of stocks, tho earn
| lngs of the Granger roads especially
being unsatisfactory, and the prospect
being that, with Il shortage in the prin-
cipal grain crops, there may be no i'm
| provement i'll traffic during the noxt few
! months.
| There Is no need to buy q Baltimore.
| Philadelphia or New York paper to find
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