New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-23


since my last visit IN 1905, must run into
very large figures. Beyond the houses and
business premises needed for residential.
fer mercantile. banking and commercial
purposes. account has 20 be taken OF the
multitude o. mills and factories OF an Kinds
mat have sprung up throughout the conn
Try. Having regard 20 the price OF bricks.
OF stone and Of lumber also. which Il, the
eastern districts is now almost as costly
as stone or brick IL IS clear that the agvre
gate sum expended each year upon build
ings OF one kind and another IS at least
f4OoOop.ooo GzNoO. 100000.
RAILROAD EXPENDITURES
Beyond the vast sums OF money expended
each year upon buildings and upon furnish
Hls AND hitting them are the capital OUTLAWS
tequireo 70 provide the country with trans
POftauen facilities The sum needed each
year by the railroads is upward.of f1sO OO0-
600 CssooyOOO.OoO and this amount Is I,,-slv
appreciably TO increase. The capital ex-
pended by tramways and elevated RAILWAYS
averages about 100000 Cs25o ooo, oaN a year.
The borrowings Of the municipalities
amount TO upward Of E5oe0O.ooo per annun.
In the first nine months OF the current year
the new issues for municipalities have been
about f55.Oo0Ooo and for the complete year
viii doubtless be over s60.ocooOo
PROSPERITY ON SOUND BASIS.
Without going further into detail # Will
be realized that the savings Of this i'm
mense and rich country are enormous and
that they are probably greater than E.eo0.-
ooo.eo0Ooo G5.OOo. 600 90 O0O a year. That is 10
say the savings Of the American people are
equal 20 an average OF at least fl2 (ssN a
hes r.f urnrAa
70 about go a head OF population With
so great saving and with so vast a sum
available for increasing the housing &C
commOdation. the transportation facilities
and the industries of the country, II is evil
dent that the prosperity OF the United
states is built upon foundations Of a very
firm and solid character and that those
persons In Europe who regard the pros
perity as OF the nature Of q soap bubble
which may at any time disappear are not
likely 10 see their expectations realized
An expansion in trade OF nearly 100 per
cent IN each decade g a rate OF growth
which could not possibly take place but
for the enormous supply OF capital which
the country enjoys In conjunction with a
spirit OF enterprise and a great desire for
efficiency.
In the present year the nation Is en-
couraged 10 save by the tempting oppor-
tunities to invest it's new savings to ad-
vantage. investors have sought especially
20 invest their new savings In the common
stocks OF companies Offering the prospect
OF expansions in profits and IN dividends.
Naturally at such a time the holders Of
those stocks were indisposed TO SELL and
those who desired 70 purchase them have
been obliged to pay steadily increasing
IN rrrs7nv &-
cannot be too clearly understood that the
great advance in the prices OF stocks has
been brought about by the effort Of per-
sons with savings TO invest 70 purchase
securities which they have believed to be
attractive, and that il has not been brought
about to any great extent by the pur-
chases OF SPECTATORS.
LOOKS FOR ADVANCE IN STOCKS.
Because Of the general expectation that
the country is IN for a period OF great
prosperity in which the profits OF railways
and OF industrial corporations win be very
large ana because of the wide demand for
stocks by real investors who look forward
10 period Of good dividends. I expressed
the opinion in my cable dispatch Of Fri
day last, October S. that after the exist
ing pressure for money is passed and there
is no longer need for bankers to curtan
their loans, another advance in prices OF
stocks may take place.
II is true that the current prices OF GER
tain stocks are not warranted by the ex-
listing dividends that they already dis
count the probable increase OF dividends fol
some time 20 come and that discrimination
is needed Nevertheless, there are stflI a
number OF securities upon which the divi-
bends are expected 20 increase appreciably
and which. having regard to the probable
dividends they are likely TO receive, are
believed 70 be intrinsicalIy worth stin
higher prices. GEORGE PAIsH,