The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-04-10

thracite coal stocks have become dangerous
pleythings. from a bear point OF view. for the
reason that they have been absorbed In large
quantities until the amount available for
speculative purposes Is comparatively small.
This Ia especially true OF Delaware and Hud-
son. Lackawanna and Jersey Central. and. to
an extent. Reading.
The Increase In wealth. owing to the return
that many large fortunes yield. IL re-
sponsible for q constant absorption Of divi.
dend paying stocks. a fact which the average
dealer in stocks seems slow to realize. In
surance companies. banks and other hnan.
cisl institutions and trust estates are com.
pelled By law or other restrictions to confins
themselves very closely to the bond market,
but individuals whose incomes run into hun
dreds OF thousands Of dollars per annum.
and occasionally into millions. are constrained.
By their established interests In railway
and other corporations. as well as by the
low rates for mohey. to invest their sur
plus in stocks. In, many cases the capl-
talists referred to are engaged In managing
tho properties In the stocks Of which they in
vest, and recently tho idea seems to have
gained ground that they can improve the
status Of their own properties by taking an in
terest in those Of their neighbors. as. for ex-
ample. in the anthracite coal deal.
The absorption OF high-Grade stocks ts
shown not only in the market for the majority
OF the anthracite shares. but in that for Lake
Shore. Chicago and Northwestern. c., B. and
Quincy. New York Central. and certain Of the
industrial stocks. Tho last have been at
tackled BY some ceitics because Of their
wide fluctuations in prices. As that group
Of stocks has only recently come upon
the market tho fluctuations referred to
have not been unnatural Every railroad
stock on the list has gone through
the same process. and every new stock
Is almost certain to follow in the Same course.
As the merits Of each property increase and
are better understood the market for 1t be-
comes more stable. because the floating sup
ply is reduced. The progress Of stock from
green security to an envisble place upon the
dividend paying list may be trying to tho
Spectator who endeavors to profit by tho
fluctuations in 1t. but that is no reason why
1t SHOULD be condemned ofrhand.
Tho bond market is developing better tone.
an d, as first class issues are not easily obtain
able In large quantities. dealers have been
encouraged to take hold OF new issues Of recoG-
nized merit. Tho number Of such issues is
small. since railroad building is almost at a
standstill. apd is confined to desirable extern
sions OF established systems. The cessation
Of foreign selling has exertcd an excellent
influence upon the investment market. 1t is
we'll enough to theorize as to the probable
action OF foreign investors now that li1uida-
ton in Argentine and other unfortunate
ventures is virtually at an end: but tho
fact remains that no one possessed
Of money. except the vcriest" miser.
wishes his money to lie unemployed or unpro-
ductive. It follows therefore, that capital
both at homo and abroad will seek something
that will pay better than call loans or COM
mercial paper. One OF tho leading bond
houses In the street Is authority for the state
ment TINT out-of-town banks have recently in
vested in bonds to d greater extent than ever
before. for tho reason that the securities are
always available either in the market or as q
basis for advances from clearing house centres.
After London had bought all the stock it
cared to in anticipation OF the reduction in the
Bank rate. and the short interest had COW
cred w. the market began to react. for the buy
ing power had become temporarily exhausted
so far as tho general list Is concerned. Since
Thursday the industrial stocks and a few spe-
dAu6S shnve been the only really strong ones.
The market to-day was dull. but in the
mains steady until the bank. statement ap-
pearea. and rs it was moro unfavor-
able than anyone had expected the pro-
fessional element sold during tho last
few minutes OF business. For tho first
time in many months Western Union led tho
list in point OF activity. 1t also scored an ex-
ceptional net advance. after selling at so. the
highest price 1t has touched in years. Other
stocks for which the market was exception
ally strong were Delaware and Hudson. Ma
tional Cordage. and Cotton Oil
The local developments this week have been
an easier market for sterling exchange and a
decided change in sentiment. since the middle
OF the week. in favor OF the Richmond Ter
minal plan OF reorganization. 1t may he that
tile plan now before tho public does not moot
all the requirements OF the case. but. assuming
that as true. the fact romans that it gives
special advantages to the holders Of Terminal
securities. who. If they act in concert, may be
able to remove the dissatisfaction which a
comparatively small proportion Of the under
lying bondholders have expressed.
Tho Terminal situation at tho moment can
be described In q sentence. A subtle contest
for the control OF that vast property is going
on, in which the reorganization committee
represents tho Terminal security holders.
while those whose interest In the property is
slight, but who wish to acquire control it on
their own terms. are fighting In ambush. Pro-
dictions that the plan will fail como from this
source, and plainly are not disinterosted. The
security holders OF tho Terminal Company
cannot possibly expect better terms than
those now offered them, and tho very fact that
some OF tho underlying bondholders IRE dis
satisfied ought to be an incentive to tho 1rat
named to accept the plan. Should u majority
OF them do So q promise with the credit
ors OF the system would be in order. II affairs
do not take this course during tho coming
week the street will doubtless be treated to an
utter collapse OF the largest railroad system In
the country.
The bank statement shows a loss In lawful
money OF IN million dollars. which. in view Of
laroe Treasurv disbursement for interast
must be accounted for in part by the with
drawals OF specie at the end Of last week for
shipment to Europe As the decrease how.
ever. is almost entirely in legal tenders. it
4hat shinrn anita To tho M iar