The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-20
Hoods Pills easy to bly, by, easy to take.

1892 in this country and since 1890 in Eu-
rope.
That depression was the result mainly
of universal over-production. The over
production was the consequence of large
excess of producing plant, growing out of
the progress of modern invention. The
over-supply of machinery has been so uni
versal and so great that the capacity for
production still largely exceeds the posi-
bilities of consumption. Industrial invest
ments, except in the case of a few mono
poles, are consequently earning almost
nothing, and from that two important
results follow-in the first place, an I'M
precedentedly low rate of interest on in
dustrial capital; and in the next place,
the Withholding of new capital from in
dustrial employment. These results in
volve the further consequences of estab-
fishing reduction In the market rate of
interest which may quite possibly be long
continued; and investment is being d.
Verted to securities which are exempt
from the evil Of over-supply. Such ex-
emption is found almost alone in railroad
securities. There has been quite a fu-
rore in London on African gold mining
stocks; but that excitement has exhausted
itself, and nothing remains, either for
speculative or investment purposes, except
the long neglected railroad issues of the
United States. Within the last five years
the yearly CONSTRUCTION OF new railroad
in this country has averaged barely 1900
miles; while. for the ten previous years,
the yearly increase averaged 7.400 miles.
The current rate of railroad construction
is thus far below the ratio of Increase in
commerce. 1t is true that the earnings
of the roads have fallen very low; but it
is also true that prices have fallen proper
tionately, and also that their receipts are
now beginning to show a material in
crease, in sympathy with the recovery of
general business.
These facts seem to mark out railroad
securities as a form of Investment de-
stined to receive a special preference
until prices have reached point that
will bring their yield to about a parity
with that of the investments which are
now suffering in productiyeness. This
drift Is clearly indicated in the fact that
Europe has, within the last three months,
taken some 100000 of our railroad in
Nestments alone That extraordinary
movement cannot be regarded as merely,
or in any important sense, speculative;
for the net export of shares previous to
this week has probably not exceeded
$5W00OO, the remainder having been new
issues of railroad bonds. The fact of
Europe having made these new invest
ments is attributable in the first place,
to the current preference for railroad
securities prevailing there as well as here,
anu diSo " tue TACT ludl the amount Oh
railroad capital invested in this country
is so immense as to afford the best source
of supply. These considerations show that
we are in the beginnings of a movement
in railroad investments of a new and spe-
cial nature, the magnitude of which it
is not easy to forecast, but which seems
to have by no means reached its culmina-
ton. In view of these facts and indica-
tons we conclude that the upward move
ment in prices has not yet reached it's
climax, and that 1895 is likely TO prove an
extraordinary year in railroad invest
ments
The foreign demand for our securities
has shown no abatement during the past
week. About 500 COO have been placed
in London and Germany including s., 000-
900 of the treasury stock of the New York
Central railroad. In all and including the
United States loan. the amount OF our
securities taken in Europe since the mid
die of February last is close upon $780,
100000.