April 28, 1893





Record   and   Guide.





637







De/oĩeD 10 fW EîWE BuiLDiNG ArcMiT£.c-tji\e .HoiisrtoLD DEBOfíí^riuit





PRICE, PER ¥EAR I.\ ADVAIVCE, SIX DOLLARS.

Published every Saturdag.

TKLBPHONK    ....   CORTLANDT 1370.

Communications ehoiild be addressed to

C. W.  SWEET,  H &  i6 Vesey St.

J. 1. LINDSEY, Business Manager.

"Eniered at ihe Post-office at New Tork, N. Y., as second-class matifr."





VOL. XLIX,





APRIL  23   1893.





No. 1,358





THE recurrence of gold exportations is by far tho most iiuport-
ant feature in the money market of the week, especially as
it seems but the beginning of a considerable movement. Gold
shipments are not infallably, but they are so frequently, a sign of
lower prices for securities that they have become to be respected as
Buch. They always induce much caution in buying and some desire
to realize. So far as the indisations c.in be read, it looks as if this
slgn will not fail now anj that we shall see lower prices on the
stock niarket in the early future. Holders of securities endeavor
to find comfort in the fact that the gold sent out this weck was
sent at a loss, the rate for exchange not being up to tlie shipping
point. Let those who like such comfort take what they can from
this fact, but it will presumably be modified by the recollection
that most of the shipments and receipts ot gold of the past
two years have been not wholly warranted by excbange quotations.
The usual .speculations on the causes of these phenomenal move-
ments may be looUed for, butthey will not interrupt their influence
on prices. An important, as well as unsatisfactory, feature of late
has been the decline in the investment demand. While bond prics
do not show much decline the volume of business is steadily con-
tracting, so that there can now be no further expectation of
advance to thepoints so sanguinely and not unnaturally looked for
a year ago. That the trend of the market ia toward lower prices is
not contradicted by the action of some stocks favored by special
causes. The Ooalers, which have really made the markets forsome
weeks, have ceased to be buoyant, Reading especially having
lost a iarge part of the gain it made on the reraoval
of some of the danger of adverse litigation and legislation and the
advance in coal rates, seems unable to recover it. Other stocka in the
same olass^are sympathetically affected. This heaviuess is explained
by Pennsylvania's antagonism to llie lecent combination and to
rumors of labor troubles as a result ot the economical reorganization
of the new Readiug system. The recent advances in coal rates, too,
show that tbe consumers, and not the middlemen, are to pay any
increase of income the combination is to receive, and thi.s may make
the law offlcers of the three States most nearly aíîected more inquisi-
tive as to the genuine intentionsof the combination and more active
in the protection of their several publics. If the coal combination
ehould eventually find that neithar the consumer nor
the midiileman wiU consent to sufîer on its behalf,
to say nothing of the satisfaction with which failure would be
regarded by the Anthracite roads, outside of the combination and
the assistance they would render to bring about such a result,
lívely times may not uureasonably be looked for among the coal
interests. It is only by an avoidance or removalof threatened dau-
gers that the stocks of the coal compauies can be expected to
advance, in which event present prices would not represent theh-
value. Outaide of the Stock Market, there is still to be found the
encouraging feature of some advance, even if small and not very
productive ot demand in the prices, of raw materials. It is some-
thing to be assured that such important products as iron and cotton
have mDst probably seen their lowest quotations for some time to
come.





rriHE cheapness of money all over Europe is beginning to have
-L its effect upon prices. Inveslors fight shy of dubious securi-
ties, of which there are a great many now listed on the Exchanges ;
but they are buying sound issues such as the German, Prussian,
Austrian and Huugarian funds in considerable quantities. Argen-
tine securities have also taken a turn for the better. The explana-
tion is that these loans have fallen so low that some enterprising
people do not see any risk in buying them, especially in view of the
embarrassing abundance of money, and the difficulties iu
the way of investing it. An ímpression. that thiugs
wer«   'improving    in     Argentina    has     also    had    Bomething





to do with the rise. The programme on which the new
President has been eleoted is not, however, very reassuring. He
ackuowledges that the country cannot possibly for many years pay
the stipulatcd interest on its bonds and guarantees; and the deduc-
tion, in order to be of any uae, must be much greater than that
recently granted to Uruguay. The rest of the programmo is : No
more guaránteesof any kind; substitution of a silver currency for
the present inconvertible paper; economy in government expendí-
ture; reform in the banking laws; protection for home industries,
and a special tax to be exclusively devoted to the service of the
foreign debt. This programme has not met with fnvor. It is
claimed that what the country requires in order to restore it to
prosperity ia a complete reversal of the system that has hitherto
been pursued, a sweeping reduction ot the crushing iraposts on its
foreign trade, and a more radical treatment of the currency ques-
tion. It is evident, however, that no ihorough-going measures wiU
meet with any response or obtain any support from the easy-going,
reckless and irresponsible inhabitants of the country. It is the
lack of many sterling qualities among the people that ia the most
hopelesa feature of the situation.





THE Russian Budget for 1891 shows that the flnances of that
country are very far from being in a satisfactory coudiiion.
The preliminary statemeut shows a deflcit of £ll,6u0,000, which is
likely to be increased by several millions before the accounts are
flnally adjusted. This deficit is to be charged against funds at the
disposal of the Treasury, which. on January Ist, amounted to
£31,978,000. But the Budget for the current year is framed so as
to ahow a detícit of £7,400,001», which is also charged against the
Treasury fund,and that, moreover, no provision has been made in
this year's Budget for famine expenditure. Thus, for the two years,
there is uncovered expenditure amounting to nearly £30,000,000,
which the Treasury is supposed to be able to meet out of funds
which, on January 1, 1891, amounted to £31,978,000, butwhich may
have been reiuforced during the interval by part of the proceeds of
the last foreign Ican. It is obviously inevitable, therefore, that
before long the Russian government must once more appeal to
foreign investors for help, and itis the political complications that
are likely to ensue which make the situation interesting to Amerí-
cans. It wouldappearasif, recognizing the hopelessuess of getting
French flnanciers agaiu to minister to their wants, the Russian
authorities were trying to make friends with Germany.
Commercial negotiations, it is said, are to pave tbe way to the
reopeniug of the German money market^ to Russian loans, just as
the Cronstadt demonstrations were skillfully used as an iuduce-
ment to France to leud her financial support. The semi-official
presg in Berlin, however, deny ihat there is auy truth in the report
about commercial negotiations, and that ÍQ any case the prospect
of negotiating a commercial treaty would not tempt Germany to
enter into intimate relations wiih Russia. It is undeniable, how-
ever, that tlie imperial government is in such financial distress that
the gold balances all over Europe aie being withdrawn ; that it ia
prepariug for the issue of a new loan, the particulars of which are
not settled; that it intends to issue a large amount of notes, and
that the so-called public works, nominally organized for the relief
of the distressed, are all of a public character.





THE Legislature which has just adjourned has undoubtedly
deserved much of the condemnation that has been passed
upon it; but it has, nevertheless, certain claims on the gratitude of
the properiy-owners in this city. For the first time in many yeais
"politics" has helpcd iustead of iuterfered with the passage of
important and needed local bills. Many public improvements,
which have beeu delayed for a loug time, because partisan contests
at Albany prevented their legislative authorization, can now be
carried; and, although a very free expeuditure of public money is
called for by these projects, this expenditure will be made for
good purposes. What we particularly wish to draw atten-
tion to, however, is the standiug of rapid transit pros-
pects as left by the Legislature. The most important
measure passed bearing upon this matter is that exempt-
ing Madison avenue from any use for railroad purposes. On its
stu-face this measure looks like a direct blow at the Commission and
itsplan, but in truth it is nothing of the sort. We do uot believe
that the Commission ever seriously inte:;ded to push this Madison
avenue route. Laying it out was simply an expedient to bring
to light the impossibility of building an East Side line
without the co-nperation of the New York Central Railroad Com-
pauy, andthe fact that they are forbidden to proceed with this part
of their plan siiuply temporarily relieves them from the responsi-
bility of meeting the difficult problem presenĩed. Now they can go
ahead with the West Sid line. So far as we kuow no serious objec-
tion.s have beeu urged agaiiist the Broadvvay-Boulevurd route, and
unless some new facts aie developed by the investigations of tho
Supreme Court Comjjissii.ners, these commissioners wUl approve
it   soihe   time   within .the   next .three   months.    The   franchise