The times. [volume] (Washington [D.C.]) 1897-1901, 1899-06-26
WHERE Is THE $4,000, DOOR
stock Brokers Lose Their Reputa
lions as Prophets.

stock Brokers Lose Their Reputa-
lions as Prophets.
What has become of 100000? There
is somewhat of mystery over the where
abouts OF the large sum OF money recently
received by Washington investors in pay
ment for their stock in the Metropolitan
and Columbia railways, and it does not
require much stretching of the truth 10
state that it has disappeared utterly,
Local business men, brokers in stocks
and bonds and in real estate have been
predicting for two months that the pay
ment of this immense amount OF ready
money to local capitalists would be the
signal for great activity in securities and
real estate. 1t was stated that several
large real estate deals were only await
ing their consummation until the money
was received The idea was prevalent that
local securities would have quick ad-
vance in price. 1t was pointed out that
money was already so cheap that it was
lying idle in the safe deposit vaults and
banks for want of profitable or satisfactory
investments Brokers called attention to
the fact that interest rates were lower
than ever before. Money was offered free
ly at from to 5 per cent, where few
months ago even, it would have command
spring and early summer have been TAX
ing up their old indebtednesses and -eplac-
ing them at lower rates.
With 5000, 900 more the brokers said,
few weeks ago, the money plenty would
be so pronounced that real estate and local
securities must boom; whether people
wanted to buy them or not they would be
forced to do so in self-defence.
But the Sc, 600, 600 has been received, in
ro1l ND hnc
quickly as it came. Local securities have
not advanced in prices, but even declined
slightly. There has been no added brisk
ness in real estate, and few OF the big
deals have been completed.
This money has not as yet, in fact, been
invested The generally accepted theory is
that 1t has gone into tin boxes.
Large sums of it are undoubtedly in the
hands of the loan brokers. Money is offer
ed now for the first time in the history OF
the city at 8 "a per cent interest on gilt
edged security" and on down town prop
erty." 1t seems doubtful, however, if
much will be loaned. AS a matter of fact
people who want to borrow have nearly all
been satisfied.
The disposition among business men is
still to believe that brisker time in Sc
curities and in real estate will result, al
though so far it has been delayed for some
ties are higher than they have ever been
! before, and this keeps many from buying
them: but It has been pointed out repeat
| eddy that conditions are different and that
rates and prices of ten or even fifty years
| ago can be no criterion now. Cheap money
makes stocks and bonds dear, as well as
other commodities. The earnings of tbs
different corporations are very large, and
| they are increasing all the time, some
faster than others, but nearly all salts
factorily. Investors may hesitate but ap-
parently they will prefer to get IL and
per cent from bonds and stocks to let
ting their money remain entirely unremun-
! eratiye.
The real estate field undoubtedly, too
presents opportunities which will be taken
| il not this week. next, or next month. wher
! investors have looked over the field and
/ found that there are no longer many safe
| 6 per cent investments. t,r
1t may be mentioned here in this con-
nection that large disbursements OF divi-
| dends and interest are to be made by To-
cal corporations next month which will ado
another big block of money to be disposed
| of in some way.