New-York tribune., 1900-08-05
financial.
The Financial World.

shrun1l to the small proportions which ia ,,,,,r,
seen some time or other every summer sea,,-
so there Is nothing particularly Significant -
that. We nearly always have it, But ss ~,
slow week drass along. we note that Isas,,.
railroad stocks are steady to strong shozfns.
gradual absorption. which win make itseIf f.ls
later; that some Of the industrlals az Oh. sts.r
stocks have so long knocked about near prez.,.
prices that It Is reasonable to assume tbev a.
at or very close 20 bottom and that the srru,r.
reserve Of the banks Is growing although a.
loans do not decrease. II is now over S29O OO6fno
II the market is again 90 become active ard
higher in the Fall months. II Is necessary thas
the banks should be In a strong position Pr,h
ably the big men will not wait for the elect,o,.
but viii put the market up-of course assurst,g
that conditions are favorable for the movement
in anticipation Of the result. That is they VIII
discount a Republican success
The announcement that the new British co,-
ernment loan Of SJO.OOOOOO would be oYsrss
here well the other side. caused SOM
temporary bearish feeling il being feared thar
it would draw away a considerable Iumo ~
money which otherwise would be used herr
The bonds pay 39z at the subscription price. ana
they are short time bOnds-three years Tina
money here is 4 per cent. and likely % be uos
less but rather more than that in the Fail IN
less there should be a considerable decrease IN
general business. This is the money which
operates on the stock market The money which
goes into SECURES ike the British 31zs is nov
largely invested in L. S. Governments which ara
selling at such high prices that they pay less
than per cent TO the purchaser One effect
therefore. which the Offering OF the British loan
here may have. is to force down the price OF
U. S. bonds. to bring those and the other
bonds nearer 10 an equality Of market price
in
must be very slight.
With this borrowing by the British Govern
ment the making of loans viii probably cease.
The South African war is so near a conclusion
that it may be said the blood Of every man killed
from now on is pure waste, for the final result
is fixed and certain. As TO China. which nov
occupies the worlds attention. il is a possiblHtv
even a probability that the business viii turn
out to have more sound and fury in H. than
any real substance China carrot fight the
world in arms. TwO-thirds OF the stun written
about a regenerated China armed and drilled
with modern weapons. is Wild irnaginings based
on the deliTium tremens dispatches from Shang-
hal What has already happened at Pekin, al
the Taku forts. and at Tientsin. shows there is
very little In it. China is not regenerated and
of modern drill and weapons il has not enough
20 make serious trouble. China simply took
other nations by surprise in a sudden wild out
break, that Is all But as 10 backing up the
surprise there is not the slightest evidence 50
far that II can do it. Probably. also one of the
discoveries which will follow from closer in
spection of China. will be that the numbers Of
it's population have been enormously exag-
gerated; and that the population was never more
than half of what It has been supposed TO BE-
When the world returns TO peace again-snd
we may see it in sixty days-there VIII be a re-
IL
sion Of industry. An after effect of wars il they
have not been too crushing. is TO send energies
Of redoubled strength into the development q
peaceful pursuits. II with Us after the
Civil WaT-one OF the greatest conflicts OF hiss
tory. If. then. the FAN months bring peace IN
their train. there is good reason 10 hope for 4
re-expansion OF trade the world over such as
will give US sound basis for bull markets.
Trading the past week has been mainly n
Union Pacific. the Atchisons, and in Baltimors
& Ohio: a little the latter part OF the week IN
the Northern Paei1cs and about the same tina
there was some good buying OF the grangsrs
specially noticeable in ST. Paul. In the indus
trials. Sugar has held It's usual prominent placs
and there was considerable selling OF American
and Continental Tobacco. said to be caused By
disappointment over the showing OF annua
earnings Union Pacific Is up TO 60 again. an
the Street Is confidently looking for II 70 wors
anywhere from five 10 ten points higher. .
worth this merits; and as the stock moves
easily, with little rallies and reactions, it has
naturally become one OF the favOrite tradini
stocks Of the market. If one buys It on ID
rally and it goes back. the buyer has the con
forting feeling that with the dividend It pan
and the earnings 1t is making. the stock is ehsai
anyhow and is sure to come up again
The declaration Of the 4 per cent dividend q
- = -
the Delaware and Hudson Company has alvay
done; that is at the beginning Of the hsea
year. the appropriation for the whole years dvi
dend Is made from the earnings OF the prevl01
year; and is declared 70 be payable in instaA
ments. either quarterly half yearly. as u
case may be. The D. & II. pays QuarterN
the b & o. directors made il hall yearly. 1n'l
was some criticism OF this action, but non
which would not apply equally TO the declaFau0
OF a dividend at all The directors say tA
since the net earnings were equal to L per GU
on the common stock, the declaration OF q q"
dend OF per cent was conservative enous'
The balance was appropriated to improvement
etc. If earnings are to keep up 70 the press
level or anywhere near il. then B. & o. cornns
is cheap at going prices; because II is not
much the dividend actually paid which os'-
mines the price OF a stock-see Steel Wire.
example, which is paying per cent-ss :
earnings the company is making. from WIN
future dividends must come. As to whether =
B. B o. company can continue TO earn as
doing now. that is a matter which the inVss"
must have his own opinion about
The AtchisOns ought to be a purchase 0n
weak spots. 1t seems 90 be generally tnoas
that the directors made mistake in inerea'-
the dividend on the preferred 10 per -
They a year ahead OF time The saiH-