The Saint Paul globe., 1900-03-26
HINTS FOR INVESTORS
HENRY CLEWs RECOMMENDS THE
PURCHASE OF SHARES BEGIN
MING TO DRAW DIVIDENDS
THIRD AVENUE ABSORPTION
Materially Benefited the Market
Money May Tighten Before the
April Settlement-SOme of
the Bull Arguments.
NEW YORK, March 24-Henry clews,

NEW YORK, March 24-Henry Clews'
weekly financial review is as follows:
The financial atmosphere has been
greatly cleared by this weeks develop
ments in Third Avenue. Now that the
road has been absorbed by the Metro
politan Street Railway company, and
the stock has again risen to par there
is less fear of disastrous consequences in
the street, except to the indiscreet bear
operators who ventured too boldly on
the short side. For the latter there has
Deen very little sympathy; although the
losses have been unusually severe among
some of the professional traders. The
coup is likely to have further beneficial
erect IN that 1t removes points of fric-
ton between certain large capitalists and
leaves them free to operate In other quar-
ters. FOR weeks past the market has
been inactive and unpromising largely
because of inharmonious relations be-
tween some of the larger interests; and
the removal OF these differences is in
eyltably a favorable factor; the effect
of which is seen in the sharp rise In
other than the traction issues.
In the general market there IS a strong
undertone which would be more safely
expressed IN the present rise If the April
settlements were safely passed. Until
these are over, we are exposed to sud-
uen strlngency In money rates and con-
Sequent reactions in stocks On the 9th
er hand general conditions favor q sinh
stanttal Improvement in values Large
railroad earnings have become such an
Old story that their effect upon values is
overlooked; but later on this all i'm
portant fact must exert its due influence
upon the market for railroad shares As
we have repeatedly stated, those shares
list, or are soon likely so to do, offer
the best inducements for purchase. The
old seasoned dividend payers are now so
tightly held at high prices that they offer
no attractions to the average Investor:
While Issues of reorganiZed propeYties
tnat are In good physical and financial
GGonalllon are likely to see much better
iigures than those which rule today. II
should also be remembered that the sup
ply or good railroad shares is steadily
deGilnlng, and our railroad system is so
tully developed that there is little pros
pect OF any considerable Increases: the
growth of branch lines and terminals
pelhg comparatively small source for
the creation of new securities While
there is thus little prospect of large new
oiferlngs, the supply of funds seeking in
YeStment must be rapidly increasing
rms factor should not be overlooked as
a Dull argument for the long run. Mer-
chants and manufacturers are all eXpe-
renclng prosperous times they will have
more funds than usual TO invest, and
Wnen the rush OF business abateS Suff1-
cientiy to permit them some attention
to outside affairs they will come into
wal! street as investors or spectators
much more freely than now or course
the approaching cessation of the Trans
yaal war and the new currency bill are
favorable events OF consequence, though
some parties entertain exaggerated no.
tions of their immediate influence upon
the market.
New York is rapidly rising in prom
lnence as financial center. The rail
roads or the country long ago made their
financial headquarters in the precincts of
wall street, much to the disappointment
OF some of our sister cities Now the
great Industrial combinations are comino
here, and more will follow, from the sane
Irresistible tendencies which brought the
rGallroadS; while the latest evidence of
ffndhclai development is the placing of
foreign loans on this market Russia Is
understood to have recently placed
80 OO0,U00 of bonds over here; and. while
thls amount was not in the ordinary
sense loan-being taken In payment for
railroad materials or to secure life IN
surance privileges In Russia-still the
transaction Is significant as showing an
entirely new disposition of American can
1tal to seek investment in foreign GOV
ernment securities. The offer here of
S5O, 100000 in subscriptions to the Rritish
war ioan was sttll more remarkable evil
dence of this tendency, although only a
small percentage of these offers Will be
accepted There is no reason whatever
why some of the better class Of foreign
Ialr market here among institutions who
wish to invest in first-claSs securities but
who lind United States bonds too hign
Tor purely investment purposes. Some
Of our abest financiers apDarentIv an
preclate this fact, as we'll as the advan-
tage of having a market over here 10
Curities. 30
The market will be materially benefited
now that the Third Avenue cripple has
been put into the hospital to be taken
care of. The stock of the Third Avenue
must be regarded, for some time to como
at least, as a minority non-dfvidend prop
erty, as it will be at the mercy Of cor
poratton. which controls a majority of
the stock in perpetuity. The strength of
the general market has been pretty thor
ou3hly tested by the fall OF Third Ave-
nue. from 242 this time last year to *
recently, and Sugar from 1872 to IS during