The herald., 1897-08-20
OFFICE OF THE HERALD,

the refunding transactions within the last
six months, of which the Lake Shores sale
of $50, 900 of refunding bonds was the
most notable, may be said to have estab-
Iished 3M per cent as the standard, rate for
gilt-edged securities. AS tending to con-
firm this fact, the Chicago and Northwest
ern railway has completed its plan for the
issue Of new ninety-year mortgage for
$165 100000 to bear interest at the rate of
31s per cent. and 1t is announced that sew
eral firms stand ready to take all of the
issue that will be offered at the present
time-probably about SIS, 100000. The latter
will replace bonds falling due in 1902 that
bear per cent interest. and one issue that
even bears per cent The consequent
saving is obvious. 1t is altogether prob
able that the refunding movement thus in
augurated will go on without check wher-
ever the management Of a railroad has
established reputation for honest, busi-
ness-like methods; and no doubt the new
rate will become general on all securities
of similar standard values. The important
bearing of this alike upon the incomes of
bondholders and the net earnings of rail-
roads and other corporations, it is needless
to point out.
\ + +
Henry Clews, in his bulletin of August
14th, says in part: For the last two weeks
the transactions on the exchange have ex-
ceeded in volume the most active opera
tions in the eighties. and yet the movement
is clearly only in it's beginnings. One of
the most striking features of this new sit
uation is the breadth of the buying move
ment. Everything is regarded as a safe
purchase, and the consequence is that from
100 to 1870 different securities are now dealt
in on the exchange in the same day-a fact
certainly unparalleled in the history of
Wall street speculations. This exhibition
of breadth may perhaps be attributed prin-
eipally to the fact that since $780, or
chiefly during the great depression, the
stock exchange has added no less than
s1,7S0,0OO 900 of new securities to its list
Exclusive of the reissues of old, which
have amounted to 81, S65. .OO0, ,0O0).
This very large increase in the variety
and amount of securities subject to hand
ling is deserving of attention. One obvious
effect is to afford increased attractions to
both investors and spectators. The
amount of investments now represented
far exceeds that dealt in on any bourse of
the world. possibly excepting that of Lon
don. Now that it is subject to a great
awakening of interest and to large recov-
cry in values, this market must make
it's influence felt as it never has
before, and must appeal to for
eign investors with an effect hitherto
unknown. To move this great mass of
securities, however, makes a correspond
ingly increased demand upon floating capi-
tai, whether for the purposes of purchase
or of margins on speculative accounts. 1t
remains to be seen to what extent such
funds will be forthcoming. Certainly, there
must be some correspondence between the
amount of means available and the sum of
securities to be moved. In the present
situation that is especially true. For the
case is not one in which some special or re-
stricted set of securities are offering tempt
ing inducements for purchase; it is a case
in which nearly everything on the ex-
change list may be regarded as an excep-
tionally profitable purchase. 1t is. in this
sense, an opportunity for investment and
speculative profits such as has never be-
fore occurred in the history of the ex-
change, whether we consider the breadth
of the supply or the relative lowness of
prices. In proportion as transactions are
widely diffused over the list, there will be
less intensity of activity and forcing of
prices on certain securities.
The whole commercial and financial drift
of the country is moving parallel with the
recovery in the investment markets. The
railroad earnings tell the whole story of
business revival The interior roads are
showing increases of earnings ranging
from to 20 per cent, and yet the improve
ment is only in its beginnings. Some
doubt has come over the corn crop in cer-
tain sections, but the wheat yield may be
safely calculated at 500, 900 900 bushels. The
movement of iron ore at the west is I'M
precedented in quantity, which shows what
may be expected from the trade that serves
as the barometer for all other trades. In
terror commercial buyers, who are flock
ing to this city in unprecedented numbers,
report an encouraged feeling and sanguine
expectations for the fall trade in all sec
tions City bankers report their country
correspondents as unusually confident
about the prospects of business and as de-
sirous of making large arrangements for
IS.
The foreign exchanges have turned in our
favor, with the expectation, both in Lon
don and here. that season of gold imports
is about to set in which may make an i'm
portant addition to our stock of the yellow
metal.
+ +
The Financial Record of New York is
responsible for the statement that some
200 Klondyke companies have been organ
lied within the past thirty days all over
the United States to go into mining opera
tions The same journal says that investors
should be very careful where they put
money in Klondyke mining organizations.
There are few good companies being got
up for the legitimate development of the
resources of Alaska, but lot of others are
simply schemes to secure money from the
public.
+ + +
The report Of the Anglo-American Tele-
graph company for the year ended June
goth, states that the total receipts from
January to June Goth, including the bal
ance of 9S69 brought forward from the last
account, amounted to 216655S. The traffic
receipts show all increase of f5935, COM
pared with same time last year. The total
expenses of the half year, including the
reDair of cables sbou,v Nv, tbo