"There are also stocks of private companies. Many of the banks are earning 7, 8, 10, or even more per cent. But these stocks are at considerable premiums, and have risen much recently. They cannot be always continuing on the ascending series. When a commercial depression shall occur these bonds will feel it more promptly and more deeply than that of most corporations; their dividends will be reduced, the premiums (which are equivalents for future, unearned, dividends) will fall off; and you may lose more by this decline than you have realized in the excess of the dividends over a fair interest. The same remark is applicable to the few railways which pay very large dividends, although they are not so sensitive to the fluctuations of commerce as the banks--in this as in the other case. The Delaware & Hudson Canal Company--whose business is to produce and bring to market anthracite coal--has declared about 16 per cent. for the last four or five years. The premium on its stock is now 50 p. c. That is lower than it has been, because of special circumstances, while I think that the next year's business will be better. The dividend is over 10 p. c. on premium and all. I would rather risk the continuance of its high premium than in any other case of a railroad. I may say, any other similar case. There is a similar company which has just come into operation--a very solid concern--which we think will be at least as good; its stock at a premium of 15 p. c. It is not so well known or so promptly marketable, and its stock is in a rather complex form, which it is expected to simplify next winter. It would be idle to say that I have not great confidence in it, since I have transferred what I had in the other to it, and have put in it more than the sum you mention in your letter; but I should not like to have another person invest in it or any similar thing merely on my judgment; and, to do so on his own, he ought to have more detailed knowledge than could be communicated in this hasty letter. The claim is that its stock will not advance much for the next 3 months--perhaps not for the next 6 or 8 months. "There are also classes of ins., to some of which I have great objection, but it would be futile now to discuss their merit.