Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 42, no. 1073: October 6, 1888

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an d Guide. iw e^ ^ ESTABLISHm^M,ftRCH2r-i^l968.'^ De/o^eQ to HE^L ESTME , BuiLoif/C ^RC^^lTECrrol^E ,HoiSElJOLD DeCORAHoN. ~~ • BlIsiiJess aiIdThemes of GeHeiV^L Ij^Jtcr^est PRUE, PER VEAR IM ADVANCE, SIX DOLLARS. Published every Saturday. TELEPHONE, . "^ , . JOHN 370. Communications should be addi-essed to C. W. SWEET, 191 Broadway. /. T. LINDSEY, Business Manager. Vol. XLII. OCTOBER (i, 1888. No. 1,073 Evei-ytbing secimecl to favor the "bulls" in stocks early in the week. Treasury disbursements were large because of the falling due of the October iaterest;; and dividends. Theu tlie boud pur- chasei'S were ou so large a scale as to add to the bank reserves at a time of the year wheii they usually run down. Tho rai,c war,"; iu the West were officially aiiiioiiiiced ay over, and tbeu the close of Septeiuber settled the question, that we bad raised the 1-jrgest corn, oats and hay crops ever known iu our liistory. But stock specula¬ tion is always uncertain. The dealings" in -wheat became positively frantic, then tbe Atchison & Sauta Fe reduced its dividends to a 4 per cent, basis. It was known also that money was ruling unnat¬ urally higb abroad, due to the dangerous investments in all the European bourses. So the market baited for a time. StiU it looks as if " bulls " were likely to have the best of ihe game in tbe long run. The reduction of the Atchison dividend was a conservative measure m itself, and the wild wheat speculation injiired foreigners more tbau Americans. The primary fact remains that our couutry bas generally been blessed with abundant crops, and tlie foreign demand for tbem will be large. Our i-ailroad system will be taxed to tlie utmost to carry the freight that will be offered during tbe coming yeai, a state of things wbicb inaures us against destructive rate wars. Altogetlier ihe outlook for American securities is very promising. ■—-—•--------------------------------------------- For many years past foreigu grain dealers and sjieculators have made a great deal of money by "shorting" our wheat market. They used to buy the cash article and sell late options. In this kind of trading the foreigners got the best of the New York and Chicago wheat sharps ; but tbe tables have been turned this year. Emboldened by their past experiences, foreigners have sold vast quantities of wheat which they did not own, but a speculative " bull " fever has broken out iu our markets, and " wheat has gone out of siglit." In fact that cereal has cornered itself. Wlien options involving forty or (ifty million bushels are bought and tbe supply of actual wheat is less tlian ten millions, it follows tliat there will be an insane scramble amoug the "bulls" to get possession of the coveted cereal. Tbis is what is iiappcning in our grain markets. A reaction must come some time, wliich will be the more severe as there are so few " sboi-ts " to cover, and thus break the course of the downward surge. This wheat business sbows the speculation, wliich has been dormant iu the grain as wcli as in the stock market lor some time past, is now at work agaiu, and we will probably soon see its effect in aii departments of business. This is why " bulls " are so confident about the future of iirices in tbe securities market. One point respecting our crops it will be well to bear in mind. There is no large surplus of wheat; but of )iay, corn and oats there is an exceedingly abundant supply. We shall have 30 per cent, more hay and oats, and om- corn yield may reach 2,300,000,000 bushels; that is to say, our animal crop will be very large for the next two years. Hay, oats aud corn are generally used up near where they are grown and reappear in the form of cattle, bogs, lard, provisions aud manufactured products. It is this wbicb gives the railroads their principal busiuess, as not only tbe wheat, rye, grass and potato crops are short abroad. Europe will need more animal as well as vegetable food up to the close of the present crop year. There is a rumor from Washingtou that the Repubhcans will urge on the Executive to open negotiations with the English Ministry looking towards the auuexation of the Dominion of Canada to the United States. It is written in the book of Destiny that some time in the futm-e there \^'iil ouly be one government in all of North America. There is every human reason why the two countries should become one. The offer to be made, it is said, is tbat the United States should assume the Canadian debt of some 1^300,- 000,000. We could afford that mouey and $300,000,000 io addition. ■Annexation would greatly enrich Canada. Still, we doubt if this deshable result wiU ever be brought about except through force of arms. There are but few instances in the history of Great Britain when its government has vohmtarily sui-rendered auy territory. It would be the i-uin of any Cabinet wJiich would seriously propose such a measure to Purliainent as the surrender of Canada to the United States. The Republican senatorial advocacy of tliis matter is largely poUtical, (he intention being to offyet President Cleve¬ land's retaliatory message. Wheu Blair and Rives published a Democratic organ in Wash¬ ington in General Jackson's, time it was said that if it was necessary to kill some rising popular leader, Blair would attack him or Rives would praise bim. Either mode of procedure was fatal to fche unfortunate politician. Mr. Charles A. Dana four years ago tried opposition to see if be could defeat Grover Cleveland, but this year to affect the same result he is supporting Mr. Cleveland, and he certainly shows rare dexterity in knifing tbe candidate he ostensibly supports. Still, he sbows the cloven foot at times too obviously. His demand that the Demo¬ cratic Presidential candidate shall write a letter indorsing Governor Hill is not so much intended to help the latter as it is to injure the candidacy of Mr. Cleveland. The Mugwumps are solid for the President uow in oifice, but notbing cau induce them to support Hill. The latter will, however, poi! a very heavy vote because he has behind him fche powerful brewing and Liquor iuterest as well as tens of tlioiL-iands of voters in both parties who do not believe in any Australian electiou law which would prevent their taking bribes when personal and party feeling ran high. Many of these votes are not available for Mr. Cleveland, and unless the Prohibi¬ tionists .ioin the Mugwumps and the labor people in supporting Warner Miller the latter will not have as many supporters in this State as General Harrison. The tariff bill pnt forth by the Itepublican Senators contains some good points, and would undoubtedly reduce tbe revenue more eft'ectively tban would the Mills bill; but it is idle to discuss either of them, as neither havea chance of passage through tbe present Congress. We doubt if the Senate bill will help tbe Republican canvass, as its free fists and proposed reductions will offend many powerful interests. The added duties wfil gain no new friends, for manufacturers very geuerally now favor tbe Republican candidate. We sbaU have no tariff legislation until the sirring of 1890. Chances seem to favor a House of Representatives committed to protection. If there are any changes in our import duties it will be uuder the provisions of au entirely difl'erent bill from tbat proposed by a Dem¬ ocratic House or tbe Republican Senators, Mayor He\vitt will soon have the appointment of seven commis¬ sioners for the Board of Education. The present board is composed of lawyers, bankers and two women. Would it uot be a good idea for the Mayor to bave one architect or builder among tbe twenty- one commissioners? New school-houses are constantly needed, and some technical knowledge ought to be available in their arrange¬ ment and construction. A sanitary expert also, vested in the mys¬ teries of plumbing, would make a useful commissioner, provided he was not a crank, or was uot interested in any invention. It is all right that the bulk of the commissiouers should represent the general public, but the past appointments have been made too exclusively from the ranks of the lawers and bankers. There is beginning to be a feeling iu metal trade circles that tbe great international copper trust is not so bad a thing after all. The copper industry in the past has beeu characterized bv years of heavy production and low prices, followed by years of ligbt produc¬ tion compared witb the demand and high prices. Hence tbe busi¬ ness methods of the trade bave resembled gambhng. In 1880 copper sold at 33 cents a pound. Up to the formation of tbe syndi¬ cate tbe price was as low aa 10 cents a pound. The price fixed by the trust—about 10 cents—is not exorbitant, and every interest would be benefited if that rate could be maintained for many years to come. That price pays for the mining of tiie copper, and mann factnrers have no cause for complaint, as they are all treated alike and kno-w upon what they can depend. But the mannfacturiug industry is tin-owu into disorder when tho price of copper fluctuates so widely ; then some producers get flie better of others by securiug the raw metal at exceptionally low prices. There is no getting away from the fact tbat the great industries of the world are being organized to get rid of unwise and wasteful competiti m. In tbe long run uo oue is really benefited when commodities aro sold below cost. This reduces the price of labor and ruins the employer. Hence the organization of trusts so much complained of aims to put a stop to ruuioas competition. There is always danger that organized capital may be tempted to exploit the community, after they have secured a monopoly hi the production. of any needed product. But excessive profits would inevitably in time lead to renewed competition. A trust cannot permanently exist unless it sells its wares at a price winch renders competition unprofitable. The international copper syndicate so far has acted wisely, and there can be no reasonable objection to tbe organizatiou of that or any industry, so as to bring about steadiness in prices. Botb labor ^ ii ift