The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-12

Dec. IL.
The occurrences Of the week. with but few OK
ceptions. have encouraged confidence regard
ing both business and prices. Tho un.
toward developments have been the de-
cision of the Government to abroRate its
contract with the Union Pacific Reorganization
Committee relative to the foreclosure sale of
the Kansas Pacific Railroad and to throw the
responsibility for the disposition Of the Govern
ment's claim upon that property upon Congress.
This may delay the reorganization Of the Union
Pacific system for several months. The delay.
however. may be minimized II tho Reorganiza.
ton adheres to its determination not
to BID for the property. in Wow Of the bad faith
OF the Government and the comparatively small
value Of the subsidized portion of tho Kansas
Pacific line other to the Union Pacific system
or as an independent property. Other unsatis.
factory circumstances are tho low price of cot
ton, which has necessftated q reduction in the
wages OF cotton mill employees. chiefly at Fall
River, and the persistent. though not extensive.
selling of American securities by European hold.
ers and speculators. This last is of the least i'm.
portance. aimee all foreign offerings of securities
are readily absorbed. AZ they have boon for a
year past. owing to the increasing wealth of
this country and the steady growth of domestic
confdencein local enterprises of all kinds.
The tone of the Presidents message and tho
temper Of Congress SO far as 1t has been made
apparent. have had a decided influence upon
investors and upon speculative sentiment. The
attitude OF investors Is plainly shown by the
dealings In the bond department OF the Stock
Exchange this week. which aggregate nearly 2Ola
million dollars par value. The new Govern.
ment As have sold at the highest price recorded
for them. while all railway issues of the
hrst class have advanced materially in
price. In addition private transactions over
the counters Of Investment ho,.a. ho-.
been unusually largo and there are no indica.
lions OF q diminution of the demand. Investors
are doubtless influenced by three noteworthy
considerations namely, tho low rates for
money, enormous railway earnings. and the
prospects that both international and do
mestic affairs will be conducted without
friction or disturbance for several months to
come. These Same considerations. of course,
carry weight with spectators in stocks and
more especially because OF their effect upon the
more substantial class Of buyers. The payment
OF dividends upon tho preferred shares of a
number of the recently reorganized railway com
panies, which has given a return upon q part of
the money contributed for tho financial rehabill-
tation OF those companies has stimulated buy
Ing OF the securities referred to and will obyi-
ously facilitate the progress OF the comparatively
fe" roorganizations that have not been COM
pleted.
"hio u uumper or industries ana various
branches OF trade are held In check by unsea-
sonably mild weather. tho business of tho coun.
try as a whole 10, according to the periodical
trade reports, steadily forging ahead. Ell.
ports or merchandise. particularly breadstufrs,
are still being made upon an extensive scale
while Imports. unfortunately for the revenues
OF the Treasury, arc decreasing. Imports of
specie are still retarded by foreign borrowings
In this market Incidents of tho week have
been tho virtual collapse OF the underground
rapid transit scheme. the settlement OF the rate
war between the Southern Railway and the
Seaboard Air Line and the declaration Of tho
nrst quarterly dividend At tho rate OF 4 y cent.
upon Northern Pacific preferred. Tho bears
upon that stock have endeavored to convey the
impression that the declaration Of this dividend