The times., 1897-06-24

The market as d whole continued strong
yesterday, but in the opinion OF great
many astute traders it showed ey1deDceS
that the break is near at hand Some
people went so far as TO predict that to-
day would witness lower prices, and even
the beginning Of decline. If this theory
becomes prevalent all of a sudden, the
thing will occur, OF course, as sufficient
profit taxing would bring IL about without
any other force. Prices are certainly very
high compa ratiyely, in some stocks higher
than they have been for long time.
Whether this is legitimate or not is hard
To say The reports OF excellent pros
poets and of increased earnings among the
railroads has seemed in many cases
Penmne and plausible. On the other
hand, there are many disagreeable features
IN the situation, aud many circumstances
which make the more conservative of bears
confident of u large decline.
l quote an editorial in the Chicago Her
aid or this point, putting very strongly
the bull side OF the argume ut; IAN events
are pointing toward re establishment
OF confidence among the railroads having
an interest in Chicago, and toward the
cessation Of the Decentralization which
has reigned for several months. Railroad
men are looking more cheerful and are
predicting an end to threatening rate
wars In freight affairs two roads yes-
terday give notice of intention to restore
reduced rates to q normal basis. These
notices, it is true, apply to comparatively
uniIaportant commodities glucose and
it's products, but the fact that restoration
is made in Ii single particular indicates
a desire to be more conservative The
roads announ cling the restor alton are
Chicago Great Western and Iowa Central,
the former on traffic between Chicago
and st. Paul, and the latter on shipments
from Marshalltown to the same point"
A thoughtful New York friend happens
to have sent me Just at the moment, too,
certain philosophiZings of his own on
the present low interest rates in New
York:
The market has shown evidence the
past few days Of buying by conservative
investors, who are coming into the market
because of present rates for money. If it
develops that this conservative element
is strong enough, number of dividend
paying stocks VIII be bought up and prac-
tically taken out of the market. The
profits of business undertakings and the
values of all securities must lie computed
on a new basis. The prevailing low in
terest rate at this time means a new era
for values in this country.
Few people stop to consider what a low
interest rate means, in a business way,
in this country and what value it adds
to property and investment securities. 1t
means that railroad bonds paying A per
the value of the stocks of dividend paying
properties are adjusted On the basis of
the present loaning rate OF moneyit means
an increase of 40 per cent in values as
compared with the values of these same
properties iii the past.
''The management of railroads and other
business undertakings has been reduced
to the minimum cost of operation, SO that
an increase OF tonnage, at even a lower
carrying charge than heretofore known,
under the new conditions or things, will
still net a fair profits to the railroads.
The present brilliant crop prospects guar
antee an increased tonnage On railroads,
which warrants the belief that they will
maintain their present dividend Rates, and
in many cases will show a marked increase
during the next twelve months"
There are to be large shipments OF gold
today, something over a million dollars OF
this nearly the whole amount is to be taken
from the subtreasury. knowledge of this
fact yesterday seemed, however, to have
no effect on the market.
Mr. F. D. Carley, of the Monetary Trust,
predicts lower prices, and even small
reaction In the market today.