The herald., 1895-05-23
Henry Clews' Weekly Review OF
the Finances
WANT RAILROAD SECURITIES
European Investments for four montns
Exceed sIzo,OOo,ooo
The Pleasant Prospects Indicated by Dun &
Co.'S Review OF Local Trade Conoit'on''
Orange latters and 7arket Notes

Henry CIews' weekly financial review;
During the past week Wall street mas
had another squirt OF realizing, IN which
London also .has joined. and with the
effect OF general decline in prices es-
pecially in the lower priced stocks.
The market has some remarKapie iea'
lures which do not Iseem to be generahy
understood. There are unseen forces pe-
hind the marketjwhich few understand,
and the force of which still fewer appre-
ciate. These influences began TO snow
their effects three months ago. ana were
ushered In by the operations % the Loan
syndicate.
They are not, however. to be attributed
wholly, nor even partially to the negoti-
alton. The syndicate really did little
more than prepare the way for the work
ing out OF tendencies previously exlsNiig'
but which had been held III restraint py
the deran,ed condition of the treasu ry
finances and the consequent lnisgivings
about the currency.
That depression was tue result mainly
of univeral over-production. The over
production was the consequence OF
large excess of producing plant, growing
out OF the progress of modern lnvehtlon'
The over-supply of machinery has been
so universal and So great that the capac-
ity for production still largely exceeds
the possibilities of consumption. In
dustrial investments, except IL the case OF
. few monopolies, are consequently earn
ing almost nothing; and from that two
important results follow; in the first
place. an nprecedentedly low rate OF IN
terest on industrial capital; and. in the
next place. the withholding OF new cap
tai from industrial employment. These
results involve the further consequences
of establishing q reduction in the u.arket t
rate of interest, which may quite pos
sibiy be long continued. and investmen t
is being diverted to securities which are
exempt from the evil OF over-supply.
Such exemption is found almost alone in
railroad securities. There has been
quite a furore in London on African gold
mining stocks: but that excit.men. is
exhausted. and nothing remains, either
for speculative or investment purposes,
except the long-neglected railroad issues
Of the United States. Europe has, with
IN the last three months taken some
$50. 900. 600 of our railroad investments
alone. The fact OF Europe having made
these new investments is attributable, in
the first place. to the current preference
for railroad securities prevailing there as
well as here. and also TO the fact that the
amount OF railroad capital in this country
is so immense as to afford the best source
of supply. These considerations show
that we are in the beginning of move
ment in railroad investments of new
and special nature, the magnitude of
which il is not easy to forecast, but
which seems TO have by no means reached
its ellrlination.
The foreign demand for our securities
has sb5zn no abatement during the past
-ssk- Aba1. so. 900, 600 have been placed
II Lscsaal and Germany, including S5,-
bsl aag O: the treasury stock of the New
YORK Central railroad. In all and in
cloz51E the United States loan, she
xzsg-zi O. or securities taken in Europe
szoos lae middle Of February last is close
Crrc7 s-1eb1. 0po.
R-w. Durham, local manager for +.
u. Qua 4 Co., furnishes the following
review OF local trade conditions for the
current week:
Business IN all lines is good. Many
house. report largest business they have
ever had up 70 this date. and collections
in most retail lines are fair. Building
trades report business constantly increas-
ing. Oil development is being extended
over larger territory. with very few
dry wells. The industry is rapidly get
ting into the hands OF men OF capital and
experience. and has passed the expert
mental point and can now be regarded as
a salient feature OF a new Los Angeles.
Every few days We hear of small manu-
factories being started or contem plated.
Ill brought here by promise Of cheap fuel.
The orange season is now rapidly draw
ing to close and while the results have
not been all that was promised at the
commencement OF the season, a large
amount OF money will have been added
o our circulation and valuable lessons
nave been learned. DeCiduous crops
promise only fair crop, but with short.
lge in the north and gutter failure in any
EASTERN sections, good prices ought to be
realized if properly marketed. .Iobbinc
;rade in all lines is good and collections
improving. We have had only three fail
ures in our district in the past week,
with liabilities OF s21, 600 aad assets about
1000. From the east we learn that a
better feeling prevails all along the line.
Prices are improving and money is seek
ing legitimate trade channels.
4 4 4
The regular meeting of the executive
board of the orange exchanges was held
yesterday. all the exchanges being rep
reseted. Some changes were msade in
prices. quotations beipg given out as fol-
lows: Mediterranean sweets. fancy, S1.5O;
choice. 81. 25; standard, 90c. Bloods and
st. Michaels, fancy, Sl.75 choice, 81. so.
The market is fairly firm as to all eastern
points. today's reports from the Great
Lake region OF cool and pleasant weather
being expected to influence the market
favorably. The indications are that for
strictly fancy fruit an advance is more
probable than decline. Strawberries
and cherries are interfering with the Or
ange trade in San Erancisco