Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-04-21
NEW YORK. TUESDAY MORNING. APRIL 81. 1870
PHILADELPHIA, April IL, 1910.

You will have learnt by the papers that the Cover
nor convened the Legislature by proclamation on the
by resolution to adjourn the 10th. Both houses
accordingly assembled yesterday, and, after the
transaction of some business deemed Of pressing inn
portance, again adjourned to the 18th May BY that
time they will probably be able to learn the wishes
Of their constituents in relation to the topics of the
Governors proclamation.
One OF the effects Of the late law, postponng
sumption OF specie payments by the banks Of this
state already apparent in the rise Of
IN which two of our largest banking institutions
Immediately and largely interested. allude to the
rapid improvement in the price Of the stocks of the
irard and United States banks of this city, Of the
Canal and Railroad Bank Of Vicksburg, and Of the
Stonington Railroad. Youwill duly appreciate my
motives, doubt not, when say, in relation to one
OF these at least, touch not-handle not.'
l have no positive personal knowledge as to the
influence which has recently been brought to bear
upon these stocks. 1t is well known, however, that
dvdual, very intimate at one If not ftco of the
largest banking Institutions" and who is not him.
sell IN afllueut circumstances, has, within few
weeks, been very large purchaser of certain Of the
stocks alluded to- In this market 1t is also believed
that the same influence has been brought to bear on
Stsnington in your market, though this fact is not
so well established. The consequence has been, a
rise OF per cent in the United States Bank, of 20
per cent in Girard and of so per cent in VclSsburg
and Stonington, within the last so days.
without referring particularly TO the condition of
the ether concerns mentioned, think it must be
evident to all who will investigate canddly the af
at present selling at price not warranted by its
present condition or future prospects. BY not re-
Stunning specie payments on the LIST inst, on its FIT,
the institution has forfeited its banking privileges
and would be compelled to wind up its affairs, even
though no assignment had been made. Five years
is allowed by law to close the concerns and all who
know anything of the state of the assets must be
aware that it is not probable that this can be effected
within the time specified. The creditor of the con-
Germ cannot reasonably expect to receive any por-
ton of the proceeds of the assets for several years
What then is the stakeholder to expect?
The report OF Messrs Cowperthwaite and Schote
suppose that the creditors of the bank will ultimately
be paid ALL and that the railroad will be left for the
stakeholder. 1t is also stated (though not IN the
rePort) that about $2,OOO000 due to the banks has
been secured by him real estate but it is not ge
neraly known that this security is the same which
the bank received originally, and thus the amount
loaned on it is nearly double what the property
could be sold for at present, it, indeed il could be
sold at all. 1t seems also to be forgotten, that ac-
cording to the statement made to the Mississippi
Legislature in 1888, very large proportion of the
loans made by the bank have been made to few in
dvduals directors and others), without security,
or on security which even then considered very
inadequate. Now it should be borne in mind that
the railroad cannot be left for the un-
less their assets shall prove good and available.
1t is also estimated by the gentlemen referred to-
that the receipts of the road, when completed, will
be equal to per cent. per annum the entire ca
Ptal The road, It is supposed will 10 completed
by the United States Bank for thai object and for
which loan she is preferred in the assignments Out
Of this estimated per cent, presume the interest
on the loan is to be paid, as well the ordinary
expenses, amounting to no trfing item. 1t will be
recoilected too, that before the explosion of this
concern the railroad universally thought to be
dead ,oeight but it that it is to prove
the salvation of the stockholders.
But even il the visionary anticpations of Messrs.
Schotc and Cowperthwate to be realized, admit
that the railroad may be saved to the
and that its business will amount to per cent on
the capital, still these stockholders, under the most
favorable view Of the case, can hope for settling
within the next ten years. Estimating the stock at
$24 per SHARE il would have cost the owner, at the
expiration Of ten years, all that Mr. Comprehensive
estimates il to be worth, should the most favorable
anticipations be realized.
believe you will agree with me that the stock
at present prices, is not very desirable inresfsnf
The reason assigned for the present extraordinary
rise in the price Of the stock is that some arrang
ment will be effected, by which the prospects of the
| concern will be greatly improved. The true secret,
however, believe to be, intention TO force up the
price, with the hope Of inducing inordnate specu-
lation and eventually to saddle the public with the
immense amount Of the stock now held by the Gil
rarl and U. s. Banks The notes Of the institution
are daily offered at 80 per cent. discount, and il
would really il this be the actual value Of the
notes (Which must first be pad), the stock is 80 pei
cent worse than nothing