St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-10-04
THE INVESTMENT MARKET.

Hi Il IN ESI VI Emf MA1Sk FL.
The market for Western investment
securities of all kinds continues dull, in
spite of the promised prosperity of this
section and the revival OF business in
Wall street. The shipment of grain to
Europe keeps on in enormous volumes
quite unprecedented in the history of
the country, and the gold which we lost
during the spring and summer is re-
turning. in fuliillment of the predictions
made at that time. There has been
plenty of money at the command of
spectators on the exchanges, and stocks
have changed hands in the past three
weeks with briskness which few an
ticipated. The reports from Minnesota
and the two Dakotas give every assur-
ance that the wheat yield is tremen-
dous, and that, with the demand which
is assured for it, these three states are
bound soon to be in better condition
than they have for several years. If
securities sold themselves, therefore,
on the basis of reason, one would think
that our bonds and mortgages would
have only to be offered to find pur-
chaser.
The GLOBE believes that 1t is speak
ing with knowledge, however, when it
says that such is not the case. The
houses engaged in this line waste their
time and stationery when they call the
attention of Eastern capitalists to the
bonds of our smaller cities or of quasi
public enterprises. Minneapolis has
succeeded this fall in floating consid-
cradle issue, and st. Paul got the money
on her certificates of indebtedness
without difficulty from the local title
insurance and trust company. But viii
lagos and cities of from five to ten
thousand people which have thought of
taking advantage of the authority given
them by the last legislature, and of max
ing public improvements, have been
discouraged by the chilly reception
their paper has met with. Even to-day
water works or gas company in one
of our smaller municipalities could
place its securities only at a figure ruin
ously low. There is really no regular
market for them, and if customer ap-
pears it is chance experience, the rep
etition of which is not to be calcu-
lated on.
The number of mortgages on st. Paul
or Minneapolis real estate now Offering
is much smaller than it was at the same
season last year or the year before last.
This is because at that time an extra
ordinary amount of building was going
on, and moneg was needed to pay for
new stores and houses erecting in all
directions. That industry has lost some
of its feverish activity, and with its de-
cline there has been an accompanying
falling off In the list of applicants for
this style of accommodation. The loans
which are making are largely by way of
renewal of those now maturing from an
earlier period. Three-year paper made
in the lively days of 1888 is now becom-
ing due in large quantities, and those
who are not prepared to pay make their
way to the brokers' Offices to settle by
new notes. Both classes, the ones seek
ing renewals and the ones seeking new
loans, find much more difficulty in get
ting what they want and much more
scrutiny made of what they have to
offer than has been common in this
market at any hour in the past decade.
Only the largest concerns with the
widest ellen tele have any money fol
such purposes, and some of them reject
many applications which they see no
reason for criticising, but which the
condition of the Eastern market fol-
such things does not warrant their
handling. All this is the truth ana
nothing but the truth, no matter what
the explanations may be.