.April 15, 1899.





Record and Guide





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J. 7. LINDSEY, Business Manager,

"Entered at the Post-O^iee at New York, N. Y,, asseeond-elasB matter."





Vol. LXIIL





APRIL 15, 1899.





No. 1,622.





THE rapid recovery in Transits and Industrials that has
marlced this week's stock market is due to a speculative
reactive movement hased on an unexpected ease in money.
Wtiether it can be continued or maintained for long is doubtful.
If further advances are possible the Transits have the best show
for making them, but neither they or the Industrials will receive
Bupportfrom any but speculative buyers. The prices to which they
have already been put, fully discounts all their future that can
be seen and if there is any good In them to which the attention
of the public has not been called, which ie very unlikely, that
also. Easy money rates encourage speculation and for the mo¬
ment speculation favors those issues which have the moat sen¬
sational movements, but the moment there is any sign of a pinch
it is these very issues that are likely to suffer most and quick¬
est. They are marked for banning as soon as danger is appre¬
hended. Good railroad issues may not promise so large, or so
rapid a return, but they will be less likely to interfere with sleep
in times of uncertainty regarding the conditions that are to pre¬
vail in the money market. It is a little early yet to say what the
spring demands for agricultural and commercial purposes will be,
but while there will be moments of disturbance in the call money
section at any rate, we do not look for a stringent money market
in view of the large amounts of funds that must be still available,
It cannot be that the expansion of business experienced so far,
whether in the speculative, or more legitimate fields of enterprise,
has already used up the immense capital resources with which we
started the year. When the needs of trade and commerce are sup¬
plied there should be stiil ample for other purposes, but we are
entering upon the period of disturbance and cannot look for even
rates, even if there is no likelihood for very high ones; except on
what may be called emergency loans, such as put up rates last
week. The announcement that the Treasury Department will
make systematic withdrawals of funds from the market for some
weeks to come, must, of course, have its influence on- rates, al¬
though these withdrawals are to be made in the way least likely
to do harm. Tliere is a tendency to make the most of the unfav-
orable crop reports recently issued by the government, and this
tendency wiil affect the grangers more particularly if it is ef¬
fective at all. Regarding the crop conditions themselves, it should!
be noticed that the increased acreage under cultivation ought to
more than offset the decline in percentage of average condition,
and that a backward spring though it has a tendency that way,
does not necessarily imply a small crop. Still, whatever may be
the favorable points of the situation, the fact that the market haa
proved susceptible to bear attacks proves that the bull feeling ia
no,longer sustained by entire confidence and that reactive mov©^
ments are more to be expected: than advances.





SO well sustained is the demand for money in the Buropeani
market that financial circles are discussing the probability
for advances in the bank rates, the point of extremest tension be¬
ing again Berlin. A matter to which no little attention is due ia
the budget just presented in the British House of Commons. Mr.
Goschen was able to report a small surplus for the fiscal year Just
closed, though early in the present calendar year the chances
pointed to a deficiency. But, instead of being able to meet extra
naval allowances out of surpluses, Mr. -Goschen ia compelled to
resort to taxation to procure the additional ships claimed to be
needed to maintain the traditional margin of superiority of the
British fleet over that of the two largest European naval powers.
That the people will care to have these expenditures continued
along with the slackening of commercial activity which the de¬
cline in the government's receipts shows Is extremely doubtful.
The withdrawal of governmental ship building would in turn In-
cpease the falling off Id business. Such a contingency is among
the high probabilities; In fact it Is a national expectation thatthe
withdrawal of extra naval expenditures, which expenditures





started the boom in British business in '94, should be the Blgn
- fhat the extreme point of activity had been reached, and that a
.reaction was in order. The Australian loans were uot as suc¬
cessful as was hoped, which is another indication of changing
conditions. Australian federation, however, seems to be getting
along in good shape, already in anticipation of its being accom¬
plished proposals for a uniform tariff, which promises to be pro¬
tective, are being formulated. The conclusion of the African
agreement between France and England may be immediately fol¬
lowed by negotiations on the Madagascar duties, a matter in
which the United States is directly interested, because trade with
this country has been as much injured by the French regulations
in Madagascar as has that of Great Britain. Just at the moment
both the United States and Great Britain are more likely to be
occupied with Germany in the settlement of the Samoan difBculty.
In this connection it may not he useless to utter a caution against
the too literal acceptance of the harsh things said by the German
press whether applied to Great Britain or ourselves. The can¬
dor of Bismarck in his memoirs and of bis Eosweli, Dr. Busch,
have shown us the crude work required from the German press
in the discharge of its duty toward tbe state—a sort of argumen¬
tation that had currency in our backwoods fifty years ago, and
whicb had to be profusely diluted before being taken.

-----------^-----------

THE AUCTION   MARKET.

IT is clear to everyone who frequents the auction room that the
business there has In the past sixty days undergone a very vig¬
orous revival. Instead of the lounging apathetic crowd who occu¬
pied the room all, last year, except upon the comparatively few
special occasions when some unusually attractive property was
offered, and property that was rather attractive from tbe specula¬
tive than the investment point of view, there Is now to be seen at
noon of each business day a bustling, active, eager throng, among
whom are many new faces. The last statement explains the
change that has come over the room and the increased volume
of transactions completed under the sign of the hammer. With¬
out new blood, the possibilities of an active auction market three
months ago were very remote. As a matter of fact the purchases
of the old stagers this spring have been comparatively small.
Accustomed to great fluctuations in values as a result of wild
speculation and weak financial conditions,he has been waiting for
the bargains of ten and twenty years ago, oblivious of the
changes tbat have been produced by local conditions, which, to¬
gether with the great increase in the wealth of the community
and concurrent reduction In interest rates, have established val¬
ues for New York realty on a new and permanently higher plane,
BO that old-time prices will never return. A significant feature of
tbe auction market has been the competitive local buying, or
buying by residents or business men in the immediate vicinity
of the property offered. This buying is the most satisfactory
■ that can. be obtained, inasmuch as it is based on a thorough
knowledge of the conditions surrounding the parcels bought, and
Is often for use and as often for investment. The buyers In these
cases can, naturally, always outbid the professional operator.
First let us draw attention' to the foreclosure sales, which are
eummarized in the following table:

Foreclosure Sales—First Quarter, 1899 and 1S9S, Compared.

I----------Bought----------,       ■Withdrawn.

Flata and         -Amounl!     j-By plaintiff.-, (—'By others—,           Amount

tenem'ta. No.       due.       [No.    Realized. No,    Realized.   No.      due.

1898.....105 $2,002,201   50    $960,73S'   42    $S&i,9i9    13    $294,373

1899.....157  3,348,236   65   l,2S3,o3T   74   1,819,052    IS     410,831

Dwellings.

1898.....64     808,510   37      453,180   IS      254,520     9      119.401

1899.....102   1,551,552   60      959,553   25      255,441    17      256,300

LotA & plots.

1898.....144     492,755   91      283,861   33      153,911    20       37,871

1899...... 91      703,978   4Ji     407,007   33      153,980    IS      156,30i

Business.

1898......   T      406,369     5      250,624     2      158,179    .........

■1899.....19  1,462,928   12     828,065     2     161,233     5     372,205

- Total, all.

18&S____.320  3,709,835 183   1,948,403   95   1,451.559    42     451.650

1899.....S69   7,066.694 178   3,478,162 133  2,389,705    58   1,195,641'

In this table will be found our usual summary of the fore¬
closure business of the flrst three months of the year, compared
with that of the same quarter of last year, compiled from the
figures given in issues of the Record and Guide published
within those respective periods. It wiil be seen from this table
that while the amount of property forced to sale was very much
larger in the quarter of this year the withdrawals were propor¬
tionately larger, as were also the number of parcels taken by out¬
siders, or rather by parties other than the plaintiffs in tjie suits
under which the parcels were sold. These two facts, together
point to a much more satisfactory condition of affairs than pre¬
vailed last year. So many circumstances combine to bring prop¬
erty to forced sale, including the system under which so much of
the speculative building Is done, that It is not always safe to base
opinions of the condition of the market wholly on this class of the
auction business; but there are features fn our table that support





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