Arizona republican., 1898-02-16

cial reconstructions connected with certain companies. These operations indicate tendency which may easily spread, and with much advantage to the finances of the companies so handled. There are few things so much needed in connection with rail- road finance as the amalgamation of adjacent or connecting roads and the readjustment of their debts at lower rates of interest. The effect must be not only to diminish the costs of nan aeement, but to unify interests which have been more or less conflicting, and so far the tendency will favor the avoidance of the cutting of rates which has so long been the bane of , railroad business. This week, we have to note another deal of this char acter. Arrangements are under way by which the Lake Erie & Western is expected to make some important new connections. It is contemplated to i extend the line eastward from Akron to point at which it will connect with a new line which is to be built ! westward by the Buffalo, Rochester & Pittsburg railway from it's system in the Clearfeld coal region, which is point of importance in the coal and coke country. This new system will get it's eastern outlet over the Buffalo, Rochester & Pittsburg, the Beach Creek and Reading lines. Connections with the Carnegie lines will also be es- tablished. The new line will be an extension of the Northern Ohio divis- ion, which from having been a burthen upon the Lake Erie and Western should now become a valuable prop erty. The length of road to be built is about 1SO miles, and the contem- plated cost $4,OOO,O0O.
 The position of the China question has changed in a direction that bodes advantages to our financial markets, though Wall street does not at pres ent attach any weight to the fact. The opening up of that great empire to for eign commerce could not but deeply affect European politics. All the sym
 
 sibility of a serious war, with Eng land on the side of free enterprise and Russia, Germany and probably France committed to policy of military az gression and exclusive privilege Such possibilities were a menace to peace that Europe's great banking inter- ests could not ignore, and recently a spirit of marked conservatism has appeared in their credit operations Lord Salisbury in the British parlia- ment and Baron von Buelow in the German reichstag have, however, giv- en full assurance that their govern ments, along with that of Russia, agree upon common policy of mak- ing whatever privileges may be secur- ed in the ports and the territory of China free, and upon equal terms to all nations. Thus question of the utmost consequence to the future of the worlds trade has been settled up- on just and reasonable principles and the possibility of it's becoming the oc- casion for great conflict has been averted. This fact amounts to a new inspiration of confidence in the rela- tions between the European powers: | which, at the same time, means the strengthening of confidence in the higher circles of finance the world over.
 All gilt edged bonds are bound to go to 3 per cent basis, if not less. Such securities are now getting very scarce: they are pretty we'll bought up by in vestors and held in strong boxes. Sec ond rate bonds will follow and go to per cent basis; per cent stocks that promise to pay per cent will finally go to premium over par, and when they do all lower grades of bonds and stocks will have a pro- nounced advance. This represents the present gauge of the stock mar ket.