New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-26

lSSO-'S3 was $717,O00,0O0. but II may ne re-
marked that the excess was $615,OOO,OOo last
year alone and 81, 026, 900 In two years end
ing with March. Prices OF everything rose In
the old days, and the wealth of the country
in market values increased third. and the
earnings Of railroads gained nearly 90 per cent
in four years. but there is something to be said
on the other side.
Money Is more abundant aud cheaper than IL
was twenty years ago. With the increase IN
wealth and in capital seeking investment the
rate obtainable for its use has declined Inc
average of weekly quotations for prime COM
mercia paper In New-York In 1888 was Joo
per cent for the best to 607 per cent; but the
average OF the weekly quotations In 1873 was
374 per cent for the best to AIS per cent GOOD
investment stocks yielding 5O5 per cent IN 1893
were then worth no more than those paying
374 per cent were worth In 1898 according 10
the money market Of the different years. IN
the first four months Of 1893. when prices were
shade higher than they are now, prime COM
mercial paper averaged 5.44 per cent Tor the
best to COG per cent; but this year II has aver
aged only 332 per cent for the best to $50 per
cent so that stocks paying 5.44 per cent III
1883 would be worth nearly 81 per cent more
now. according TO the difference In the value of
not been reduced in such proportion. The divi-
dends actually paid on twenty-five active stocks
in 1888 amounted to 1914 per cent, and In
1898 to 10 per cent. or 1874 per cent less, while
on thirty-eight less active or investment stocks
the dividends amounted to 3Oola per cent IN
1888 and o734 per cent in $685. practically all
the decrease being due TO the failure of three
companies to pay. as Baltimore and Ohio for
\ binh oil
cent. and Terre Haute and indianapolis. per
cent. But with about II per cent reduction in
dividends on all stocks, those which formerly
paid n current rate of interest on the best COM
mercial paper in 1883 would now pay 46 per
cent more than the current rate Of interest II
the relation of dividends TO the current market
rate for money should govern, prices should
average 46 per cent higher than in 1888.
The figures do not warrant a definite infer
ence that stocks are relatively higher than at
the last period OF great National Development
and prosperity, nor that they should not fur
Their advance. more positive inference might
be warranted but for one fact. The stock mar
ket Is now absorbed and overloaded with new
industrial stocks which depend upon condl-
tons unknown In previous years. These so
greatly affect money and security markets that
they can hardly move independently, so that
conclusions drawn from the intrinsic or rela-
tive value or past history of railroad stocks
may now be found untrustworthy If col
lapse comes in trust stocks all others will be
considerably affected for n time Other stocks
will also be affected If trust stocks continue to
absorb interest and available capital. The
market has been placed largely at the mercy OF
corporations which do not even profess that
their securities represent actual value of prop
erty. and its future cannot therefore be readily
predicted