Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-09-08
THEY PROPHEsY PROSPERITY.
Jay Gould and Jay Cooke Look for Coed
Times Ahead.


when left New York." said Mr.. Jay Gould
IN an interview published in the New York Sa6n
today, everything in the financial world
looked encouraging. The Union Pacific Rail-
road Company needed some money for the
July disbursements, which was furnished by
Mr.. Ames, myself and one or two others OF the
directors. 1t with some surprise, there
fore. that when was in the west received a
telegram to the effect that some of the credit
ors had begun to call their loans. While the
company had ample security, yet, as every one
knows, VIC were passing through period when
there was absolutely no sale for bonds, which
were drug upon the market. The company
III word, was threatened with embarrassment,
and received the most pressing calls to come
home. This i was most reluctant TO do. and
finally telegraphed a suggestion to make
three-year note or notes. covered BY the avail
able securities OF the company, which amounted
to more than double the amount of the pro-
posed credit Such notes thought the com
pany could afford to offer its creditors at price
al which the latter would be glad to take them.
because. so soon as the public realized that the
securities would thus not be forced upon the
market and prices be depressed the reverse
result would be inevitable and a great appre-
citation ensue, due not only to this fact but to
the certainty of a sharp rise in the bond market,
which must naturally take place some time
within the period of the life of these notes
The increase market value. therefore. of some
clO,OOO,OOO of securities would return fourfold
any temporary expenditure involved by the
Issue of such notes. This too. would bridge
over the crisis until the condition of the bond
market would permit, within the next year or
two. of the sale of these bonds and thus enable
the company to get out of debt. II should be
borne In mind. however. that owing to increas-
ing competition from new roads, &c. the ten
dency OF operating expenses is upward, while
the reverse Is the case with rates which arc
gradually being reduced. However, the enor-
nous volume Of busIness now in sight will COM
pensatc for this
AS 10 whether we are having or shall have
any great boom IN prices just now Is of less
importance III my judgment than the GER
tainty OF that steady Improvement and prog
ress i'll all those conditions without whose
e1lstence no rise can be permanent no en-
hanc,ment of value substantial. W. passed
through a severe ordeal last year. The loss
consequent on year of short crops is no
small matter and it Is going to take lot of
business to fill up the gap and strike an aver
age. Wall street, however. is not retrospect
tive. DO not sec how Europe with her I'M
preccdcnted necessities can avoid sending us
back much OF our gold. 1t Is probable, indeed,
that good deal more gold went abroad than
there was any necessity for Certainly more
than the exchange market warranted. Instead
of debtor we are going to be creditor
nation. Las. year our I'M orts were excessive;
new all that is changed. lie cotton crop Is
net locking SO we'll. We a~e rot gong TO have
an excessive yisld this year, l tbink-ratEer a
shortage. in fact, than otherwise. though the
country will probably realize alnicG; much
money from 4 small as big crop. In word.
look fer long period Ct great prosperity IL
this country
A ST. Paul dispatch to the Philadelphia Press
today says: Jay Cooke. the Philadelphia capi-
talist. who is now travelling i'll the west, said
yesterday: II iooh forward to a long term OF
immense nrO-ngriry for the tEnifA1 States I
believe that We now ut TIE beginning of an
era which will mark the advance of our coun-
try to the rank of the foremost commercial
and financial nation of the world.
For years the United States has been drained
annually of millions of gold. which sent
abroad TO redeem or rerurchase the securities,
both public AMI private. which were sold to
foreign capitalists the times of our financial
depressions. Ever since the beginning of the
war this has been going on. 1t is now about
ended. The United States indebtedness to
Europe has nearly all been paid and the cur
rent of money income has set the other way.
Hereafter the gold will come to us.
The stability during the recent financial
Crisis ls one of the highest proofs that foreign
ers nave every confidence III us. When the en-
barrassment of the Earrings sent securities of
every kind on the foreign bourse tumbling,
American securities were least affected. This
shows that the credit abroad of American en-
terprise is good. and this credit of American
securities is well established Hereafter every
American will be rated as gilt-edged in foreign
financial circles, and l think American securi-
ties will be sought after by European investors
at much higher prices than now prevail.
Another potent element in the prosperity of
the country Is the abundant harvests All over
the world. except in the United States, the
crops this year are short The result will be a
demand for our grain, and better prices arc in
evitable. This viii rebound to the good of all.
The farmer will receive prices that Will yield