Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-29
THE ROCK ISLAND DIVIDEND STARTED
THINGS UPWARD.
Effect Of the Interstate Commerce Decision
Surplus Bank Reserve-No Trouble
About Gold Shipments-Exports of Mer-
Misunderstanding Day.
ESPECIAL TELEGRAM TO THE p1spATeR.I

ESPECIAL TELEGRAM TO THE pIsPATcR.I
New YORK, March 28-In his weekly finan-
cial review, Henry Clews says: The situation in
the stock market has been materially improved
this week by the declaration of the usual per
cent quarterly dividend by the Rock Island
Company. The enemies of the road and Of the
various directors, who appear to be quite
numerous in Wall street, have been confident
for some time past that the dividend would
either be cut in two or else passed altogether.
Upon this theory large short interest in that
stock had gradually accumulated. The result
Of the regular meeting Of the directors. held
Monday, was, therefore, great disappointment
to the bears, but q cause of rejoicing on the
part of the bona fide holders of Rock Island
shares. who have been powerless to stem its
heretofore downward current. Rock Island
stock, in consequence. instead of being almost
the weakest on the list. as Of late, has now be-
come not only active, but one Of the important
leaders Of the general market, and has caused
by sympathy other kindred properties to ad-
vance also; in fact, the whole situation at the
Exchange has undergone q change for the bet
ter. resulting from the declaration of the Rock
Island dividend
The continued increased earnings of the St.
Paul road have also added their part to
strengthen confidence. 1t is conjectured that
the President Of the st. Paul Company, who
took his departure on Wednesday last for Eu-
rope, will, while in London, by both word and
action. help TO improve the securities of his
road in that market. st. Paul was formerly
one OF the most favored stocks dealt in at the
London Exchange. There Is no denying the
fact that the prospects of the Grangers and
Southwestern roads are being materially bene-
fitted by the reforms and greater economies in
their management. as well as by the good pros
pect OF much better crops for the coming year
than the last. The winter wheat prospects GER
tainly make cheerful outlook for all the
Western roads, and If that crop, together with
the corn crop, should approximate to anything
near what they were in 1883. the stock market
will surely have an od-fashioned boom before
the end o. the present. year, which
Wall street operators and commission firms
would welcome as great blessing.
The Cox decision by thu Interstate Com
mission. which will have to be lived up to by
the various anthracite coal companies until
modified or reYersed-the chances for which
are dubIous-will prove a serious blow to the
various coal companies, and will materially
lessen their net earning capacity for the CON-
ing year at least. For, that reason, It would
appear that Delaware, Laekawanna and West.
ern and Delaware and Hudson stocks were now
on merit selling as high as justified by the out
look ahead of them. .r.'
at hapd) being settling day in New England
and most of the nearby States, disturbance
in the money market usually results therefrom,
and as a natural sequence . severe break in
prices of stocks invariably follows. The No
vember Barring Bros. panic, however, has re-
moved the possibility of such an occurrence for
this year, as tits seldom that two serious money
disturbances occur SO near together; besides,
liquidation was fnlly completed by the weak
and timid holders of stocks at that time.
The present surplus bank reserve is ample to
stand the drain that is likely to be made upon
the banks for the April ilsettlements without the
prospect of their going below the 25 per cent
required by the national banking law as has
been the case for the past several years. -
The effort to create uneasiness in the matter
of gold shipments was too transparent to be
of long duration. Our exports of merchandise
during the II months to date over imports
while have not the figures at my hand at the
balance in our favor. 1t is not unlikely however
that the return of American securities to this
side will necessitate more going forward
during the early spring. This eer.
tainly will be the case unless . change GENES
In favor of buying back some Of the stocks that
not at all unliKely. as the condition Of all the
money markets of Europe is reported as be- |
ing stagnant and without any particular or tiI- |
usual demand. 1t must be remembered, also, |
that the exports of silver for the past year have
only been about S2,5O0O 600, as against nearly |
with an easier Sterling Exchange market, |
somewhat contrary to what was expected. 1t |
is due TO this fact that no gold has been taken |
out for export thus far this week, nor has any |
been talked Of as likely to 60 forward. The |
gold export scare, therefore, has evidently |
in the event of shipments being revived. as |
may be the case next week or the following |
one, it will not be likely to send a shock |
through Wall street. as did the last shipments.