The Providence news. (Providence [R.I.]) 1891-1906, 1894-10-29
LOCAL FINANCES.

for money is still an unsettled question,
but certain II Is that there Is constantly
increasing amouns OF cash in the hands
of banks and during the past week there
has been decreasing demand for 1t, the
two combining to produce lower rates for
money than for some time past. To these
conditions is tA further fact that the
reduction OF rates made by the New York
banks upon the deposits OF their corre-
spondents will induce the country banks
! to hold their funds at home or TO offer
them at still lower rates than now obtain
ing. 1t is therefore probable that local
rates will seek lower level during the
next few weeks and that to 81 per cent.
will be a good rate before long on gilt
| edged paper.
All this portends no advantage to the
bank stockholder, especially to those who
hold stock in banks that are bidding 2R
per cent. for deposits. Hence it is that
have not an instance to record this week
OF an improved bid for any local bank
stock. On the contrary there have been
one or two declines though Of only slight
fractions.
The only private sale of bank stocks
that can quote Is one of small lot of
Manufacturers National Bank which
passed at 136.
There Is however constantly increas-
ing demand for good securities but at
prices that indicate feeling on part OF
investors that lower quotations are thing
OF the future. The debenture bonds OF the
New Haven road are n prime favorite.
The stock OF this company is much
stronger. Sales have been made ct prices
varying from S1S4h to S186s4.
The stock of Providence & Worcester
Railroad has sold at SEAS during the week.
Another sale of rare occurrence was
that of one of the Providence per cent.
GOLD bonds due In 1906 ! The price obtained
was s116A. The net return will be 3A
per cent.
The Providence Il Stonington Steam
ship Co. has declared a dividend (quar-
terly) OF per cent. payable on November
! to stockholders OF that date. The last
dividend was passed. There has been
private sale Of this stock this week at
$l29, although S129h is now bid. The
resumption OF dividends will doubtless
arouse some activity In the stock.
Gorham preferred OF which spoke two
weeks ago has sold at s106.50. 1t is going
hig her.
Insurance stocks show no improvement
In demand but the local companies are
rapidly getting into shape so that their
next annual statement OF earnings will
gladden. the hearts of the stock holders.
There has recently been marked decrease
in losses, andthe effects of the new rates are
being slowly felt. speak of the statement
OF earnings because 1t is OF course under
stood that the assets and consequently the
surplus account OF insurance companies
depends somewhat ON the marketable
VQ N n n nj inv q.
while the earnings have been good the
total results may not fully such improve
ment as the earning would warrant, be
cause of the declining value of some securi-
ties held. When we remember that both
the companies now paying dividends, the
Equitable and Merchants, have more than
earned their dividends already, and then
add to this the fact that during the two
months to come insurance companies
usually make more money than during
the whole Of the rest OF the year, the situ-
alton ought to warrant some activity In
demand for insurance stocks.
There has been good deal of specula-
tion over the advertised sale of the prop
erty of the National India Rubber works
at Bristol, during the week. This was all
the greater surprise to many because in
the prospectus of the United States Rub
ber Company, Of which the National India
Rubber Company is now part,
it was stated that the company,
(the United States Company had no
bonded or mortgage debt. This state
ment was understood by some to refer to
the companies comprising the trust. 1t
was further stated that the United States
Company, (the Trust) either "owns abso-
lutely or permanently controls" the pro-
perties comprising it. How then could
the National Rubber Company be sold
under foreclosure of mort
gage which procedure results from
the default OF payment on bonds. The
whole story is too long for me to enter
into details, but the meat of 1t is this:
When the National Rubber Company
entered the Trust, all of its $3.50 900 bonds
were called in, redeemed and cancelled
except a lot of $4,000 held by ex- Mayor
William X. Grace OF New York. Mr..
Grace is dealer in rubber and
the National Rubber Compsny had for
some time been trading with him. Owing
to some fault in the rubber, the National
Rubber Company entered claim against
Mr.. Grace for an amount exceeding $780,
600, and when the bonds were
cancelled, wished to have Mr..
0EhCo bcttiV POitioh Va ito Cloliu
by turniag over the $4,000 bonds.
This Mr.. Grace refused to do and when
the bonds fell due last July the company
naturally enough refused to pay them on
the ground of its counter claim. Now
Mr.. Grace wants to foreclose the mortgage
and the company will have the sale post
poned under an injunction, when the
whole matter will be brought up in the
courts for settlement.
Narragansett Electric Lighting Com
psny has sold this week for 76, at private
sale. There is some pressure to sell this
security.
Mr.. Burnham will have an interesting
sale of local securities at his Office on
Thursday. He usually secures good prices
and will at that time probably sell his
offerings at prices above those quoted on
the exchange. The lNsIDER.