The Sun.
London, England, 1868-05-07 00:00:00

AMERICAN MARKET 8.

(Fro .n Belding, Keith, and Co.'s Circular.)
NEW YORK., April 17, is our latest by mail. Tho posi-
tion of affairs there, financially, we report as follows from
the Journal of Commerce:

The financial gentlemen who furnish the bulk of the
capital for the speculators in stocks have just now their
periodical scare about the value of these securities, and
are trying to call in their loans, to obtain better margins,
or to suspend the business indefinitely. This leads
,to a
remarkable pedestrian activity on the part of those who
carry on the business (if speculation can be called a busi-
ness) with borrowed capital, and seine of them make as
good time on their feet in search of cash balances as Woo-
ten or any of his compeer,,, who have witched the world
with renowned specimens of tall walking. Those in-
different spectators who road of the money-market being
"tight," and of the indisposition of capitalists to lend
upon ordinary stock security, k❑ow my little of the full
meaning-et-these -words to one who is copying aline
of shares with the aid of borrowed money. If any fat
gentleman of our acquaintance desires to reduce his
adipose matter, we can pledge ourselves as to his suc-
cess if he will take a turn in stocks with insufficient
means while the market is in one of these transition
stages. Money lenders, provokingly cautious and exact-
ing of wide margins; hours between ten and three un-
usually swift-winged ; friends suspicious and reserved in
their offers of aid ; securities on hand always looking out
of the under eyelid ; a self-accusing phantom which is
ever whispering, " How came I to be caught in such a
scrape ?" a tendency to colour all objects within the range
of vision, as if they were seen through glasses of a ceru-
lean hue; these, and other adjuncts of the same unplea-
sant character, render the days of which we are writing a
time of sore trouble to this class of operators.
The demand for money from speculative borrowers
continues active, but there appears to be no unusual in-
quiry for purposes of legitimate business. Call loans are
made upon Government securities at 7 per cent.; but in
many cases an additional commission is paid upon stock
collatertiis. The range of discount for first-class commer-
cial paper is 7 to 9 par cent. per annum.
The following is from the circular of Messrs. Henry
Clews and Co.:—ln our last advices vie intimated that, in
view of the then diminished resources of the banks, it was
not improbable that the monetary movements incident to
the beginning of April, aided by artificial means, might
induce a stringent condition of the money market. Our
anticipations have been more than realized, for dur-
ing the last four weeks money has exhibited a stringency
which, for severity and persistence, has never been
equalled since 1857. From the 7th of March to the 4th of
April the banks have lost $26,800,000 of deposits and
$5,300,000 of legal tenders, which has necessitated a re-
duction in their loans and discounts of $14,900,00 0. The
stock of legal tenders in the banks is at present lower than
.at any period since the national banking system has been
in full operation, and is $7,300,000 below the amount at
this period of last year, although then the banks had been
subjected to a somewhat severe drain. The following
comparison shows the present condition of the banks,
compared with one month ago and with the same period
of last year :-
--rOONDITION- OF NEW YORK. BANKS.
April 4, 1868. March 7, 1868
Dols. Dols. Dols.
Loans and dis 254,288,000 269,156,000 Dec. 14,869,000
Specie 17,097,000 2(1,714,000 Dec. 3,617,000
Circulation
Dep05it5........., 180,956,000 207,737,000 Dec. 26,781,000
Legal tenders 51,709,000 57,017,000 Dec. 5,308,000
April 6, 1867.
Dols. Dols.
Loans and discounts 251,470,000 Dec. 573,000
Specie s .
Circulation

Dq)osits
59,021,00 U Dee. 7,312,000
Leg.tl tendurs

This heavy depletion of the resources of the banks has
been partially duo to ordinary movements, more especially
to the wants of the west and south, to the usual April drain
into the interior for settlements on real estate and other
contracts, to the pressing requirements of the public de-
partments causing heavy drafts on the national deposi-
tories, and to preparations for the quarterly statements
of the banks. These movements of themselves, how-
ever, would have produced nothing beyond a tempo-
rarily close 7 per cent. market. The directors of the
Erie Railroad selected this condition of affairs as the occa-
sion for throwing upon the market 100,000 shares of new
stock ; which realized to the company $7,250,000, and to Mr.
Drew, the real purchaser from the company, a still higher
amount. In order to evade legal process and to embarrass
the holders of certain stocks these funds have been taken

out of the City, principalj_y- we believe iu the form' of .3'n
rency ; and besides this, a large amount of the private
funds of recusant directors were also transferred to Jersey
City ; so that, within the month, probably close upon
$12,000,000 of money has in this way been taken wholly'
out of circulation. This too it must be remembered has
been done immediately after the tying up of a considerable
amount of money, under similar circumstances, by the
direction of the Rock Island Company. Theseopetations,
while withholding several millions of circulation, have
added 149,000 shares to the supply of stocks being carried
on the market. Under these extraordinary circumstances,
the wonder is not that money should have been loaned on
good collaterals at 7 per cent. in gold, and evens par cent.
per day, but that we have not witnessed a disastrous panic.
The following were the closing quotations at the
regular board compared with those of the four preceding
weeks :

Mar. 27. Apr. 3. Apr. 9. April 17.
New York Central 119* 122 k 1211 112*.
Erie
Hudson River l3l 140 141 125*
Reading - 901 90. i. 87*
Michigan Southern 814- 84 90 87
Michigan Central 113 115
Clev. cud Pittsb 9l 92 . ..... 874
Cloy. and Toledo. 1031 104;- 1041. 102
North-western , 60 63
" preferred 74 74 751 70/
Rock Island 921 941 951 ......
Port Wayne lO2 99i ......
Illinois Central
Ohio and Miss 29* 31. 31i 301