The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-24
The Saturday Review-Noney uott pc

The high prices of what are considered
| hish-ciass securities in all of the arcat
| european markets are remarkabIe ~ Inc
| present time. On Tuesday. for example
S were quoted at lOl12. In few
| years, II VIII be remembered the infarfet
WIZ automatically fan to pa per cent.
ana yet they were IL over par. The
Two ana half per cents were 1OOia
lnuian sterling three and a half per
cents. were quoted 1O9a,. Indian Sterline
threes were at par; the New south WaIee
-FOUR per cents. were 109A: New ZeaIand
Iour per cents were 1907. Canadian three
anu haI1 per cents. were 1887; Natal
three and a halls were 1OOlh. t'~vntian
unihed four per cents. were l03 1-S. toWn-
uan three and half per cents were 1pIb6
IN faris on the same day three ana a
nan per cent. rentes opened at lOllt.
the three and half per cents al M
In Vienna, austria, gold rentes onened
at izoA; Hungarian gold rentes at 1o0L
IN Berlin, Prussian tours opened at I07E
anu New German threes at 9OIb. This
extraordinary DEAFNESS of the secc,rj, so,
MnlSh are. most In favor in the greot
markets OF Europe proves that tbera C.
an immense amount OF capitaI uaitire
d d1r INV investment, and that the feeling OF
ulsuust which has prevailed for tha
past four years has not quite died o,,t 10y
Inere is unquestionably a great jnnnro,,a'
ment ScaTes have ceased since IL ~
20 th .me past year; but yet, people are
rather apprehensive and iInWilijne thora
iore 10 invest in anything Thai - s',e aI1
doubtful. At the same time The hIvi aii
OF the best securities which has hem
SONG gong on upon such scale for six months
past, proves beyond question revi,,ni no 40
confidence, and that the jnvestinc n ~ "a
nave grown tired of keeping their rpnopnS
ldle. capital has increased in gucn I'M
INTENSE masses at all the great banking
centres that the banks have found IL mn
possible to employ their funds at good
rates. Consequently, they are Obliged 10
lower the allowances they make upon de-
posts, and the public therefore. are with
drawing their deposits and investing
This Is what always happens after a
great crisis. The public learns caution
1t is very careful how It invests for a
while and. therefore. selects only the best
securities. But these are limited in sup
ply. and after awhile their prices get so
high. that the public is unwilling to pur-
chase any longer. Then the holder spirits
begin TO buy securities which are not |
considered quite so safe. Here at nome |
this buying of what may be called sec |
ond-class securities has been going on for |
several months The ordinary stocks OF |
British railways, for example, are almost |
as high in proportion as the very best Sc
curities: and that proves that the holder
investors dissatisfied with the return
yielded by the very best stocks, are turn
ing TO stocks not quite so good but which
vet are safe. When this second class or |
securities becomes too high in the estima-
ton of the market, securities OF lower
class or, at all events, securities which |
the public do not look upon as equal
ly safe. will be bought; and so the buy
ing will extend TO more and more risky
securities, until at last speculation is
stimulated. Further. there will be an en-
couragement TO new enterprise. Before
there is very much speculation II is GER
tain that new loans and new companies
Will be brought out TO meet the demand
OF that portion Of the investing public
which Is dissatisfied with the return
yielded by good securities now existing.
IL Is well known that large number OF
new enterprises are prepared: but even
YET the public is not willing 10 subscribe
largely Therefore. the new issues are
held back. Probably. the chief deternent
- me condition OF the United States and |
,naia. III people could be sure that tho
indian currency question would be solved
without serious Inconvenience TO tho gov
eminent. and that the United States |
would emerge from It's crisis without n
lr,ner shock to credit. they wouId no
riad 10 invest In promising new securities
lSnt as long as the public are uncertain ~
what VIII happen In India and IN IN
onlted states, they are hardly likely 81
snsase IN new risks. At all events - ..
certain that the new issues brought out