The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-05-15

tanned In relation the matters IN dispute between the
two At the same time several orders from
abroad we're for the low priced stocks These
orders apparently were given under the impression that
the great decline here had arisen from panic growing
out of war well the disastrous revu
sion that has the paper system in this country
H dfc ult fox capitalists believe that under any cir.
cumstances State government bring itself to the
point formal Reputation Of its debts and it supposed
hat when the excitement attendant upon do
f,cations over that plan will be hit upon to
charge the debts In this view investments in the cheap
stocks have been made speculation for foreign
count The bulls" took advantage of this and carried
prices higher than they would bear; reaction there
fore inevitable In this country the demand stock
very small consequent upon the fact that the accumua
ton of surplus capital for the last lew years. has been
ry insignificant. and have swept from
lstence by the depreciation of property In State stocks
alone at least 500 900 have been sunk Az stated
yesterday bank capital the amount Of $66 has
ceased to exist In real estate the loss equal to both
these In company and railroad stocks at least
more has been sunk. These may be summed as follows:
Loss of Capital in u State. by fall Of Stocks SEC s S SS
by x Ed msa' 9' ssotl ' ssSSsSSs
Total four items. ssas 1896. 900
The immense number of mercantile failures, and the
curtaent dividends has checked the accumulation oil
descriptions goods have fallen low that the floating
capital which remains finds profitable investment
than even per government stocks. We conceive
that these have operated powerfully prevent in
in the loans created The sound banks
indeed easy in their circumstances but they have been
severely admonished Of late years to think Of de-
parture from strict commercial banking, matter what
temptations may be offered The competitors for stocks
then consists almost entirely Of that small class of capital
lists whose have been invested in those securities
which have escaped the general wreck and which CONT
pay dividends and command such prices enable
them realize and change the investment at pleasure
These people have the choice of the market and many
modes oin presented to them. There the
chance of rise in any of the old stocks; of stocks
there the Federal per cent stock 20 years to run
The pts of the however goo
less than the expenditures and plan of finance has
yet decided is impossible say how much more
stock may yet be created, especially is the
avowed policy Of powerful party in Congress to give
away the from the public lands further dmin-
sh the by protective duties and to create aper
national debt This being the policy, through
change of circumstances should be attempted to be car
ried into effect the fall in price consequent upon would
the holders of the present stock On the other hand
the State Of New York with ample revenues levied new
pledge for the loan and have adopted the po-
has issued per cent stock This is the most desirable
that has been created and yet it with difficulty
/ found market, from above pointed out.