308 



FINANCIAL REVIEW OF 1890. 



The following shows gross and net earnings of the principal trunk roads. The fiscal year of the 

 New York Central has been changed so as to terminate June 30: 



The Stock Market lor 1890. The highest 

 prices for leading stocks were this year recorded 

 during the first six months, and the lowest in 

 November, when the market was affected by the 

 financial crisis in London immediately preceding 

 the fall of the house of Baring Brothers. In 

 January active money tended to check specula- 

 tion early in the month, although the South- 

 westerns were strong, but after the first week, 

 when money grew easier, prices fell off under the 

 lead of Reading and Sugar Trust, to react again 

 after the middle of the month, and the tone was 

 generally strong to the close. The feature early 

 in February was a sharp advance in Reading, 

 due to reports of the formation of a pool in op- 

 position to the management. The Grangers 

 were lower during the entire month, influenced 

 by a fall in Rock Island, and the tendency of the 

 market was downward for nearly all the leading 

 properties. The attempts of a clique of bold op- 

 erators to obtain control of the Sixth National, 

 the Lenox Hill, and the Equitable banks, had 

 more or less influence upon the speculation after 

 the third week of the month. In March the tend- 

 ency of the market was upward. Reading ad- 

 vanced sharply in consequence of a squeeze of 

 the shorts ; Chicago, Burlington and Quincy im- 

 proved on the announcement that control of the 

 Chicago, Burlington and Northern had been ob- 

 tained by it; Atchison, Topeka and Sante Fe 

 rose on reports of largely increased earnings ; and 

 there was an advance in Sugar Trust. Toward 

 the close of the month the unsettled condition 

 of political affairs in Europe, resulting from the 

 resignation of Prince Bismarck, caused a slight 

 flurry here, but a recovery soon followed. Louis- 

 ville and Nashville was temporarily unfavorably 

 affected by news of the damaging cyclone at 

 Louisville and vicinity, and one incident was the 

 unexpected change in the management of the 

 Louisville, New Albany and Chicago. In April 

 Cleveland, Cincinnati, Chicago and St. Louis 

 rose sharply on news that this road and the Lake 

 Shore would control the Wabash and Michigan. 

 Reading advanced on the adjustment of the dif- 

 ferences between the management and the pool 

 organized in opposition to" it, and the progress 

 made in congress with the Silver bill more or less 

 influenced the whole market during the closing 

 days of the month. Early in May the specula- 

 tion was tame and the tone irregular, and after 

 the middle of the month the tendency was down- 

 ward. One feature was the absorption by the 

 Atchison. Topeka and Sante Fe of the St. Louis 

 and San Francisco, which accounted for the rise 



in the stocks of the last-named company, and 

 another feature was a fall in Richmond Termi- 

 nal due to the announcement of an increase in 

 the capital stock. Further progress in Congress 

 with the Silver bill stimulated an improvement 

 in the market during the early part of June, but 

 the effect of this legislation was partly counter- 

 acted by the unsatisfactory condition of railroad 

 affairs in the West, which encouraged bearish 

 demonstrations. The decision of the New York 

 Court of Appeals that the Sugar Trust was illegal 

 caused a sharp fall in that property, which more 

 or less affected the whole market, and there 

 was a further disturbing influence in a drop 

 in Chicago Gas due to the appointment of a re- 

 ceiver. At the close of the month the Silver bill 

 was before a conference committee of both Houses 

 of Congress, and it became a law on July 14. 

 The effect of the passage of the bill was dis- 

 counted, and our market was influenced in great 

 measure by the unsettled state of affairs in Lon- 

 don, resulting from the financial crisis and the 

 political revolution in the Argentine Republic, 

 large amounts of the securities of this nation 

 having found a lodgement on the London Stock 

 Exchange. On the 24th the Secretary of the 

 Treasury began to buy bonds for the sinking 

 fund, and this stimulated an improvement in 

 the market by removing fears of stringency in 

 money, and the tone was generally strong to the 

 close of the month. Early in August the specu- 

 lation was unfavorably affected by a movement 

 of gold to London, which made money active, 

 but the Secretary of the Treasury sought to re- 

 lieve the monetary situation by offering to redeem 

 4-J- per cents, which mature in September, 1891, 

 and he also began purchases of silver bullion un- 

 der the new law, paying a little more than the 

 parity of the London price for the metal. The 

 silver -bullion certificates representing silver 

 stored in one of the safe-deposit. companies of 

 this city rose rapidly to 121, and this movement 

 was reflected in an advance in the London price 

 for bar silver. The strike of the Knights of 

 Labor in the employ of the New York Central 

 temporarily unsettled the Vanderbilt specialties, 

 but on the collapse of the strike there was a re- 

 covery, and the tendency of the market was up- 

 ward for the remainder of the month. In Sep- 

 tember the course of prices was downward, the 

 market being affected by stringency in money, 

 persistent selling of the 'Grangers by the bears, 

 and an unfavorable construction put upon the 

 new tariff bill, which, it was claimed, would have 

 a disturbing effect upon the money market and 



