The herald., 1897-10-22
OFFICE OF THE HERALD,

about Brooklyn Heights have been quietly
pushed for some time past. 1t is claimed
that very important results, including the
certainty of an immense deposit of the
light oil similar to that found at Puente
have been secured. Having made these
discoveries, the parties have stopped the
work and proceeded to make new borings
which are now being prosecuted. Mean
while their agents are bonding all the ter
ritory they can acquire to work on royalty.
1t has long been the opinion of experts that
oil would be found in the vicinity of Brook
lyn Heights, and according to Professor
Watts the locality in question doubtless
carries under its belt stratum OF Oil that
extends between the city and Puente.
4 =
1t does not appear to be yet settled
whether the proposed new issue of city
bonds shall bear four per cent or four and
half per cent interest. Every effort Will
doubtless be directed in certain quarters
towards making them carry the higher
rate. The plea used will be that While II
is true that Los Angeles city four per cents
have sold at a premium, yet it was because
they were payable in gold coin of the
United States, and the proposed issue being
payable in lawful money of the United
States a different result must be expected
and that difference expressed in interest,
is exactly one half of one per centum per
annum.
Naturally a four and a half per cent
bond would afford the buyer better op-
portunity for "sweetening," but those who
know the officials who control these mat
ters are aware also that no offer of the
kind would have any weight with them.
They would not even stop to inquire, like
Poo Bah, whether the insult were to be
"cash down or at date"
The possibility of any indirection being
thus removed, it ought to be plainly seen
that, judging from the responses sent in
reply to Clerk Hances circular inquiry to
eastern bond buyers, there will be no real
difficulty in floating four per cent lawful
money bond at par. This question has TO
be settled before the election Is called and
II may have an important effect upon the
result.
This is how they manage to refund their
A dispatch from Monterey says:
An important decision has just been
reached by the board of supervisors OF
Monterey county relative to the county S
bonded indebtedness. In accordance there
with $1SO,000 of this Indebtedness will be
refunded at a rate of interest lower than
that now being paid Towbridge & Co. OF
Chicago will take the bonds-$6O,0OO of
per cent courthouse bonds and $4,000 OF
per cent bridge bonds-at Az per cent
and will pay therefor a premium of $3.50.
The county will thus save annually slSOO
interest. The necessary special election
will be held on October 30th.
1t may be that the handsome offer above
mentioned will be surpassed, or 1t may not
even materalize at the proper moment.
At any rate the bonds will have to be Of
fered at public competition.
+ + =
The New York circular of Henry Clews,
under date of October 18th, contains the fol-
lowing. among other. comments on the
commercial situation. He says:
Wall street has not yet recovered its
equilibrium after the recent radical pro-
cess of liquidation. The realizings of large
holders have deprived the market of its
most important element of strength, and
the minor operators are left to meet the
shock of vigorous bear attacks as best
they may. The pessimists have been doing
the work of the prudent optimists who
have sold out and want to get in again,
by putting down prices to point at which
the latter will buy. How much further this
process may run it is not easy to say. AS
yet, it has not reached a point at which
rcp al 6or hI,f
there are indications that the new level of
prices is bringing out a gradually increas-
ing volume of buying. When the daily
tally of business rises from 100000 shares
to 500, 900 without any break in prices, it is
rather an evidence of courageous buying
than of bear sales. At the moment, three
influences are affecting the market unfa-
vorably-the yellow fever. the election ex-
citement and the new phase of Cuban af-
fairs. The latter is not calculated to pre-
cipitate any immediate action on the part
Of our government; in brief, the new stu
alton means postponement The yellow fe-
yer begins to show some abatement; 1t is
now we'll under quarantine regulation.
Really, at present, there is no serious quar-
antine embargo upon the traffic of any i'm
portant railroads.
The condition of the railroads, which is
the commanding consideration affecting
the value of securities, passes as a silent
factor. The earnings in all sections con-
tinue at the high rate recently established
and the September gross business will show
phenomenal figures. When the market es-
capes from its present dumpy mood, these
facts will receive due consideration and
counteract the minor influences that, for
some days past, have been invested with
such exaggerated Importance. No further
arrangements have been made for the i'm
portation Of gold. Last weeks engage
ments, amounting to $4,000. 900, have in
duced efforts in London to check the out
flow, which for the moment have dimin-
ished the movement, and on Thursday the
Bank of England put up its rate from 2h
to per cent. The advance is what I
foreshadowed some time ago, and from ap-
ypearances it is more than likely to go to
per cent at least very soon. The bank re-
serve is now 100000 lower than 1t has
been for similar period since 1898, while
its loans are $7,OO0,OOO larger than for any
October month in eight years. The imme-
diate future moves of the Bank of Eng
land will be important factors at all the
great money centers, and operators on this
side will have to keep an eye thereon for
their guidance.
A disappointing rye crop is indicated by
returns to the American Agriculturist. In
stead of the 2S 600, 900 bushels expected. the
domestic crop now appears to be about
900 bushels, 900 more than last
year, but 100000 less than in 1895 and 1894
The increase Is mainly in Pennsylvania,
the western crop being quite disappolnt-
T.ot asst o1xrin or