Year: 1875

WALL STREET,


SUNDAY, Dec. IL, 1875
We have had frequent occasion express the opinion
chat matters financial and commercial still In too
unsatisfactory state to admit OF general and healthy
advance in the speculative stock market and
furnished support OF our theory. While the
wealthy money lender, cautious perhaps,
tents himself with oaning his money on call at low
rates Of interest or OF letting it lie bank at inter-
est at all the small capitalist cannot afford to pursue
like course. His money must be put to work 10
his daily bread, and employment must be found for
1t which at and SAFE The general
stock list (using the word in contradistnction to
bond is composed for the greater part corporations
that never have paid, and probably will pay
dividend and of others still that pay by ts and starts
at uncertain periods and in uncertain sums


1t is clear that the small capitalist cannot take the
risk Of investing in these with the assurance of a
return in the shape OF interest his money
any more than he could in specializing upon margins,
and consequently he leaves the share list relgously
Alone and seeks the bond market the stocks OF such
corporations are beyond all question Hence we
have these facts and results There is surplus
money that be rsked the chances Of speculation
and speculation is dead accordingly Investors decline
even TO take temporary "fyer' among the fancies
but leave the whole ed to be cultivated and harvested
by professional OPERATORS hence the stock market





government bonds and the funded debts of the great
corporations show high and advancing figures.


Indeed this latter class of securities is almost unat-
tainabe at figures which will return the legal rate OF
interest and this fact viii tend shortly to attract CAPT
tai In entirely different direcon-viz investments
In real property. II is axiom that after great
crisis real Is the last security fall
In value and the last TO after the storm has
blown Experience has shown this to be true,





property, from Its very nature and from the laws
which control It, is difficult OF sale and difficult of
transfer Trammelled by title deeds, mortgages and
liens of every description, it is not convertible into
money but the expense OF time and labor The
chant the specuator driven TO the wall in times Of
panic. must have money at once be swept away by
the threatening tide Consequently everything is
saabe goes market 6rst and stocks wares mer-
chandise pressed for sale for what they viii bring
Real estate follows naturally last OF all and marks the
end of the period Of liquidation.


The rise Is equally slow in coming, and scarcely
be hoped for until general confidence has restored
and the country begun to show unmisakable signs OF
Improvement Even then the advance is sluggish.
Money is wanted to foster slowly revivng business
and must be kept in the shape of money of some
easily convertible commodity, and 1t is not until the
accretions from successful trade bountif crops
considerable that real estate will be generally
sought for by investors.


The decline real during the last three years
will range from thirty forty per on the vaua-
tons OF that time back and the long list OF foreclosure
sales daily advertised shows that the process or iqui
dation is going rapidly 1t is probable that prices
have nearly touched bottom and the temptation TO
vest surplus capital in real properties safe
munerative operation is becoming greater every day.
Once convinced that things upon hardpan a
large proportion of the wealth which lying idle
being lent out at low rates of interest will def
ntely nxed and though the loaning price may be
HANGED, II will, nevertheless be a harbinger Of more
prosperous days to come


THE COMMERCIAL SITUATION


review of the commercial situation for the past
week fails to present single feature an encouraging
character Our warehouses remain allied with the
grain and other products of the land more firmly
locked with that ''paper key"-legal tender-than
If surrounded by armed soldicry. Hence stagnation
in trade, dearth OF business for our railroads and
general dry rot The thousand or more active mem
bers OF the Produce Exchange are compelled 10 be
content with the dinners scratched from the siftnps
or less than 200 900 bushels of grain per day or from
the drppngs OF other articles the business In which
Ia OF equally magnificent proportions. Even the daily
papers Western cities where the autumn trade has
been fairly active have done less boastng during the
past week and INDUCED in no little growling At the
present condition OF their local commerce. Comment
would be suporauous. The argument exists in the
facts.


MEETING CONGRESS,


which commenced its session last Monday has attracted
less than usual public attention, probably because
II may be thought that with the two houses politically
opposed to each other lite II any important legisla-
tion will be accomplished The Presidents Message
and the report or the Secretary OF tho Treasury upon
the subject OF the finances have each received vora-
bic comment But they fail to impress the financial
world for the that the specific proposals OF each
dsemed TO be impractcable The proposed funding
or the olega tenders" necessary step in the right
direction but to be OF any avail the rate OF interest
should be such induce the people to fund There
seems TO be good why the holders Of long
dshonored debt should be classcd any less avorably
than those who lend their money to the government
from choice and because they are satisfied with
the rate OF interest The United States cannot
now borrow money in the markets Of the world
at less than ave per cent II therefore seems like
species OF reputation TO propose TO the holders Of
long past due lower or interest than il is
possible 70 negotiate new loans for II should not be
iorgotten that the 6rst enactments which author
xcd the issue OF the tender notes made them con.