St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-09-24
IDLE GOLD GALORE.
London Has Millions Of Money
Which It Must Soon
Invest.
AMERICA MOST DESIRABLE,
And British Funds Will Soon
Flow Freely in This Di-
PectiOn.
CHECKS TO OUR SECURITIES.
Railroad Reeeiverships and
the Trusts Condition Dis
turbing Elements.
Special 10 the Globe.

Special TO the Globe.
NEW YORK, Sept. %. -During the
past week Vail street has been devoid
of any features OF special interest. The
volume of transactions has been mOder-
ate. and prices have been somewhat
Irregular, in sympathy with erratic
movements in the industrial stocks.
Railroad securities, however, hold their
own pretty well. especially considering
the disappointment at the reduction of
Rock Islands dividend, which. however,
vas not entirely unexpected. The large
and controlling holders have confidence
II n steady and material Improvement
in earnings as the recovery in trade de
velopS and when the crops come 10 the
Seaboard in i~ncleaSing volume. The
wheat crop is regarded as bringing a
more valuable amount of freight to the
railroads than II other cereal: aud rs
the wheat surplus available for export
this year will probably exceed that OF
any previous period, large expectations
are based upon this source of through
traffic. The corn crop is so largely con
suIned at the point of production, or
Wv Vim ~. oAAN' nav tAN
decrease in this years product of that
staple is of less Importance as affecting
the railroads than might al first sight
appear. The country'S exports of wheat
and Hour is valued at $40, 900, 900, while
that of Indian corn amounts Ia only
S25. 600 .001; a decrease Of % per cent.
therefore, in this latter crop must be a
comparatively small matter to the traffic
OF the roads dependent on their cereal
export trade; and any loss on that ac-
count is likely TO be fully set off by the
gain in the export movement of wheat.
The traffic, however, which brings the
Most Profitable Results
Is the carriage of manufactured articles
and of passengers; and what the i'm
provement in those classes of traffic is
likely to be may be inferred from the
current active revival in every branch
of trade and the general starting up OF
industrial production. Intelligent OBJ
servers see III all this a sure coming eX-
pansion of the earnings Of the railroads.
and they are consequently unwilling to
part with any securities of that class.
1t seems reasonable TO expect that. with
sucn a revival in near prospects, buying
movement will soon develop with a
view to profting by the higher prices
which these considerations foreShadow.
AT the moment two influences are hold.
Ing these Important bali factors IN
check; II being the still pending re-
construction of a very large amount of
railroad investment, which keeps con-
stantiy before the public eye the weak
points in this branch of lina nee; and
the other being the peculiar position of
the trust" organizations. An impor-
tant proportion Of the Combines are
either i'll serious difficulty or suspected
as to their financial so%undneSs,, and
others seem to be on the verge of dis
ruptiOn from internal dissatisfactions.
The truth is that the doubtful basis
upon when many of these concerns
rest is becoming apparent to discerning
eyes. and they are destined to run the
gauntlet of
APubiic Distrust
which probably they are not prepared
to withstand. The market is now
largely occupied with operations which
NV SoiSoialCo W OlllS ILLS CLASS vi
securities to a truer correspondence to
their intrinsic merits. Those, there
fore. who prefer safety to indefinite
risks would be prudent in exchanging
their "industrials" for railroad stocks
or bonds. London begins to show more
interest in American securities. AS
our change of tariff policy is a move
ment in the direction of British ideas.
it is natural enough tina: the reduction
OF customs duties should predispose
Engiishmen to our investments. Tie
first effects of this change are apparent
less In any open speculative demand
than in a stream of inquiries from Lon
don to Wall street investment houses.
evidently III contemplation of careful
and solid investments. This tendency
may be expected 10 grow as business
here reviveS and railroad earnings i'm
prove. and later it may easily become
the incentive to more active dealings in
Americans" OH the London and CONT
mental exchanges. Indeed, there is
already a visible Improvement In the
demand from London speculative
houses, although it is cautious and
tentative, and follows closely the tiuctu-
atoms in the home market. The prob
ability is that, when our own people
"Set the Pace,
by more active buying, London will he
found willing to follow us as far as we
may choose to go. 1t is difficult to see
how England can well escape a liberal
return to transatlantic investments.
The London rate of interest s%tubbornlv
remains unprecedentedly low, and the
Bank of England is literally overlooking
with idle gold; England's home invest.
mentS are relatively high, and yield ex-
c%eptionally low returns; neither in her
colonies or elsewhere does she find new
enterprises OF a character TO attract
capital; in the outlying countries where
she has so enormously and uuwisely
sunk her capital, such as Argentina
ana Brazil, the beginnings of a slow
recovery may be apparent. but nothing
Is presented sufficiently meritorlous to
attract new OUTLAWS; Australia has dis.
gusted the lenders whose hundreds of
millions OF capital have been sun
there, and must expect to raise it's fut.
ure loans at home; in short, cIiticise
our methods of finance, our democratic
institutions and legislative policies as
they may, Englishmen can nowhere
else md investments on the whole so
desirable as those procurable at New
YORK at about the present ranpe of
prices. ms Is a fact SO obvious, even
10 sinister observers, that it cannot fail
10 sooner or later have its effect on this
market In view of the foregoing con-
illusions L deem it unusually safe to
recommend the buying OF sound stocks
upon breaks in prices.
HENRY CLEwS.