The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-14

Doubleday. Rope a. Co.. Of Colorado
Springs. Col. give the following quotations:
anaconda -.!.... $50
nisxntuiu ...-.......-..... ...-..---.-.--- U4
n,oIue 1ipsoh.-.-.-.----- -..-....----oa
ns
tsdpciid ......--... 1p4
Siount ROSA lot2
WEEKLY FINANCIAL REVIEW.
I'm Wall street the speculative interest
still hangs fire." says Henry Clews. in his
weekly review of last weeks operations on
the New York Stock Exchange. There
is hesitation and postponement, though in
no sense positive distrust. The
spirit OF speculation and investment alike
Is conservative and cautious. and those
who have made large profits upon the adj
vance OF the last few months are not dis
posed TO risk them recklessly upon new
ventures There is a feeling that the not
remote future has better conditions in store:
but between the present and then there
are contingencies which are regarded as
possibly involving sharp tests OF the
among those uncertainties are the
the opening of the new year. and
the extremely sensitive state OF spec
ulation on the foreign bourses. The for
mer of these uncertainties is viewed hope
fully. or at least as being so far In the
future as to warrant no acute misgiviBgs
at the moment. The bad possibilities of
tUt bliiiii SDttuidtloii, HOW-
ever, Is a much more serious matter and
guard
1.-The Kafirs excitement is one of the
widest outbreaks of speculative mania ex-
perienced within the present century 1t
began with the remarkable success Of a
diiscoveries in south Africa. 'n Tbis led to
the formation OF syndicates without end,
and to the formation of companies for ex-
pioration and for dealing in the new issues
OF stocks and for the boldest banking un-
dertakiDgs. In respect to basis. many of
the schemes have really none except that
Of air; whilst most of those that have ac-
tual property have very questionable de-
posts of the precious metal. and all are
capitalized immensely in excess of their ac-
tual merits. In the exploiting of these VEN
lures, the fine art of financing has been car
ried to the most daring pitch of excess.
Dividends have been declared in the face
Of losses and in the absence of production
or even Of any development. BY bold ma
been steadily forced up to a positively
ludicrous imitation. II is impossible to
this furore OF speculation has run, for of
a large amount of the ventures no public
on Is obtainabIe; But; SO far as
less publicity to their affairs. there are
some twenty-five which have been paying
dividends. with some regularity. averaging
about 20 per cent. and ranging in some
cases as high as g.. 20, 80 and even 100 per
cent. These may be regarded as bona fide
tntcIDIlSeSs ana IN the speculative entQuS-
iasm they have excited lies the basis of
the rotten superstructures of speculation on
which the metropolitan and provincial
stock markets are alike running crazy. The
legal capitalization of these twenty-five
companies is about S32. 800. coo; while their
present market price represents $l92, SOC, 000,
ON the current price. Besides these, there
are 133 companies reporting on the London
market which are paying no dividends and
pass muster on reiterated promises that
oro novar 3,rlAlnd These nnn6fuiHan6 N "
ing mines have an aggregate capital of
$139, 900, 900. Their market valuation last
month was 1856. 100000, or exactly four times
the par value of the shares. Besides the
15S mining companies above referred to,
there are thirty-one other various organi-
z~ations, which are concerned in land. bank
ing. estates, promoting, exploration, etc.
These concerns have a total capital of
sI9,e0o.0O0. consisting principally of fl
shares; and, in this case again, the market
value is exactly four times the par capi-
talization, being $15. 100000. Excluding
from the reckoning the twenty-five divi-
dend-payins mining stocks. we have here
first, a total of 1854 enterprises, represent
ing either no value or very uncertain val
ne. capitalized at $21s. 0oo. 900; and. second.
this comparatively worthless scrip worked
up TO a fictitious market valuation of $780,
100000. France has also it's schemes OF
like quality and similarly inflated, but We
have no means of knowing their exact ex-
tent.
This is the measure of the mass of ex-
plosive elements that now underlies the
financial markets of London and Paris.
This Is the quality OF the investment ma
terial that those great centers are gloat-
ing over while contemporary turning up
their noses at Americana securities 1t is
not surprising that the sober part of Lon
don and Paris must begin to feel uneasy.
That all this must end in a terrific explo-
sion there is no possibility of question.
postponed is not 10, be doubted. The symp-
toms are already ominous. The stage of
distrust has been reached, and the next
w..,ot ~ ~aalDn1. and u-hQn thar
comes the collapse will be instantaneous,
and hundreds of millions OF market value
may be wiped out In a few hours or days.
At the moment the stronger. spectators
are attempting TO stay the realizing process
by main force of buying: but such stuff
cannot be saved by such tricks. and soon
the big spectators and the little ones will
be crowding on each other to realize, with
no buyers in the field. From the nature of
the case II must be SO; and It is none too
early to discount the inevitable
The interest of the New York market in
this impending explosion lies I'm this: That
as the collapse would affect the whole in
vestment market, our securities held In En-
gland would suffer i'm sympathy. and might
consequently be returned on this market.
II Is easy; however. to overestimate the
participated in this craze are not likely to
be the same as those who invest i'm our Sc
curities or speculate ., IN snem. I'm ane ia later der
mand would soon return, and the specula-
tive interest In London would then center
upon Americans. as aHOTuinS the most at
traction to the conservatism In speculation
which would then be the order of the day.
Nevertheless. Wall street cannot afford TO.
be Indifferent to the coming end of this in
fation. We shall feel the shock of the dis
tant earthquake. and il will be prudent to
keep a v~igilant eye upon our china.
Home conditions affecting the market
are generally favorable. The business OF
the country Is proceeding upon a conserve
tive but fairly profitable basis. The bust
ness of the railroads continues TO gradually
improve. and the increase of $4,000 in last
months receipts of the New York Central
Is regarded as an encouraging symptom
The conferences among the Western roads
with a view 10 stopping rate-cutting are
progressing favorably towards some form
of agreement. The rise of % cents per ton
I'm the price of coal Is favorable to better
results for the coal roads. The movement
of produce to the seaboard is now fairly
under way. which means not only better
earnings for the railroads. but also a freer
supply of exchange against grain and cot
ton. and a further decline in rates for ster-
ling. The large outflow of currency to the
interior Is a healthy symptom. and is grad
ually putting up the rate OF interest
towards a normal scale, which has been
much needed as a means OF ~insuring a
more wholesome regulation of the gold
saturdays Bank Clearings.