Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 49, no. 1258: April 23, 1892

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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