The sun., 1891-05-17
and surplus profits both Of which are Intended

and surplus profits. both Of which are intended
for use In the conduct OF their business.
That the statement took the street By sur
prise 10 expressing It mildly. Tho market up
to the time the statement was published had
been first heavy and then wenk. 1t was evil
dent that preparations had been made to
break prices WHOM the statement appeared.
| but they had been made upon the assumption
| that the hgdres would show falling of in the
| reserve OF nt least 5000. 600. Instead OF de.
moralIzinR the market the benrs themselves
became demoralized. During the last fifteen
minutes OF business declines were recovered
which 1t had taken all the morning to bring
about. st. Pau common. for example.
| rallied IN Y cont Louisville aud Nashville,
which had becn under good denl OF pressure.
| rallied nenrly rs much and Northern Pacific
preferred. which had been pressed down TO
| 66!s, advanced SO sharply that 1t scored q net
| gain OF u q cent c.. d. and Quincy. Chicago
Gas, and Missouri Pacific also showed strouG
| recuperativo powers. Tho speclaitfca woro
not affected as much IS the leading shares for
the reason. presumably, that there Is no short
interest In then. SIN. the closing % q whole
was strong. but with shorts tho principal
buyers.
The market has boon subsorvient to the ship
mlnation OF that movement largo operators
arc evidently disincllned to do much. II any
thing. They appreciate that there Is very
littlo investment demand for railway securi-
ties, . cilcumstancs which IL Is useless to
ignore. In view OF tho very light transactions
In bonds on tho Stock Exchange. 1t would DO
interesting to know what disposition is being
made OF the largo amount OF Investment money
which now accumulates In this country. There
IL al yt,,fN, l.. ~
ileoting its absorption in that field. and
there is comparatively little doinG In other
wsil-known mediums. such as municipal
securities and Western farm mortgages. We
are rather forced 10 the conclusion therefore.
that largo percentage OF the surplus income
OF individuals and other investors Is going into
commercial Investments. Some very attrno-
tive securities Of that class arc being offered
from time to time. md the fact that those pos
sessing merit are readily absorbed indicates
that the movement in favor OF thsm is likely to
bo permanent.
Doubtless one reason for the slack demand
for railway securities for inves;msnt is tho
financial condition OF Europe. Foreign oper-
ators arc disposed to speculate in our market
because they 81 Q great possibilities In II dur
ing the next six or eight months, but bankers
on the other sido are too much engaged with
their own affairs aud too desirous OF retaining
all the money they can attract to their vautst to
encourage their clients to invest money in other
countries. The foreign investment clientele
IL really of moro value to our market for
securities than Its spectators: for the first
whom in the market diminishes our supply OF
securities. whereas the last simply play with
them. It is an axiom OF the street that the first
Sa B hsre Is n nase az Mhsrs ns
ility or even mathematical demonstrations
have have 80 poor ~ sl,ow ns "a Wall street prece-
lively mi.isadine. It is possible and ressons-
bic that bull movement can have tts incep.
which has halted. owing to the supersens-
tivenoss Of the speculative community relative
to the sfp9rts OF specie bus 80 far been entire
;. The halt can do no harm. On the contrary.
% s'sG saea % as os hs 1t
tpeeie have directed attention to the sterling
iichtened tho street on. those poin ts. While
the marEet has, been waiting tho wheat crop
%
calities partteuilsriy l at the West, go TINT the
priees sa I" ts q iarthsr value IN ensbps
s ds IL on oe
hs %a q a Tas S
ere ceiling way above N their E intrinsS I In S value.
m m ns fbs o. rdc
uiousiy high prices. Pe,hapA the most con:
tho New York and New England Railroad.
company which according to its own showing
is losing it's business or else handling 1t un-
proftably and nt the sumo tino IL rolling up
largO floating debt.
The general situation has improved during
the week. The country not only parts with
the gold necessary to settle its foreign trade
balance with eQuanimitv, but is actually going
ahead in the Transaction OF It's own business.
Two most important Industries. the anthfa-
cite coal and tho iron trade. are beginning 10
pick up after many months Of dopress on. and
the volume Of general business is gradually
expanding In response to leGittmate demand
foT stape g ods. hopefqlw ~ wIesing s Il noted as
alone depression, , exists. seems only 70 be Walt
foreign trade balance to resume the cheerful |
ness which characterized 1t last month.
AZ compared with the final prices OF Inst |
Saturday. the majority OF stocks arc lower. |
The moro important net declines were In |
Sugar Rsiineriea 3A n cent MOI Invest, Louis |
yilio and Nashville and Parilc Mail. TX each |
Union Pacific, IN: southern Pacific. IN; Lake |
Shore and National Corlnge, ! ench: liock |
Island. x: Lead Trust and Wheeling and Lake |
Eric preferred. j encli; Ntch!son. Northern
Tacif,c preferred. Richmond and Terminal and |
Western Union. - each: Cleveland. Cincinnati. |
Chicago and 81. Louis. New Englnnd, North |
American COmnsny Wheeling and Lake Eric |
and Wabash preferred. y p cent cnch. The |
noteworthy advances were IN Lackawnnna. |
J, y cent. and Chicago. Burlington and Quincy. |
= u cent.