The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-04-25

Siuies,
Since this list was formed, those marked have failed
and some change has taken place in the character Of
other Of the States for the worse. Ohio wal foundt 10
have gone beyond its present revenue by taxation, and
the Legislature {" lodged" the question Of increased i'm
ports. It's financial officers had engaged in some dis
graceful transactions with the suspended banks, on ae
count of the State, and the legislature adjourned after
providing for the claims upon the State, only by creating
a nsw loan Of 81, 5000 to be sold at par. This knocked
the stock down to so, but orders from abroad have raised
the price 20 per cent. What the future course Of the
state may be,is yet to be seen. Thsprobability is, a. she
IS yet in a comparatively good position, and the move
ments of the British government are calculated to give
an increased impetus to the markets for her produce, that
she may be induced to retrace her errors and provide
amply for her debts. Pennsylvania, Maryland, and Vir'
ginis, have greatly deteriorated, and the conduct Of
their rulers Is such, that little hope can be entertained Of
their speedily retrieving their affairs, and they are in
great danger Of falling to a level with Mississippi. Ala
bama and New Orleans, as yet, continue to pay but the
stocks depend alone upon the banks, whose capitals are
greatly impaired, ane whose existence even for a few
months is very .p~roblematicsl. The stock OF the State
of New York, although one of the best on the list, has
vibrated in a remarkable degree owing to q combination
Of circumstance, the principal OF which was the in
Auence and movement Of the Erie Rail Road. Thespoli.
cy Of the late State administration was under the infu-
encs of certain parties in Wall street, to run into debt
ALMOST WuuOut Aiuit, dNu " AouA ~ ONCuieo Va sAo
to companies, among others to the Erie Rail Road. That
company procured So, 900 frem the State, and
Throughout last year, notwithstanding the state of the
market and the panic which existed in regard to State
stocks, the certificates issued to the company were con-
tinually forced upon the market, in violation of law, thus
destroying the credit Of the State. Assoon as the whole
$1,000 600 was obtained, the company turned round, mo-
hfed the State that il! could not pay the interest. 1t
failed outright with outstanding liabilities to the amount
- q n n oud rada n u aeei0nment 0f all iQ eHpCta.
The sale Of stock by this company, undoubtedly, caused
New York stocks to sink 10 to % per cent below what
they would have been had no such sales been made.
The losses sustained by the public by this concern may
be summed up as follows:-
stock obtained from the State, $1,000, 900
Outstanding liabilities, s0o, 900
Fail of 10 per cent in the value of the State
stock, caused by the sales ofthe company, 100000
Total loss to the public, s5,7ooOoo
This loss was inflicted upon the people to fill the pock-
ets Of a few brokers who shaved the stock, and to keep a
few politicians in Office at $1,000 per annum. The demo
cratic legislature of the last session put an end to this
~iniquity at once, and have raised the value of the State
credit 10 per cent, by simply stopping all farther issues
Of stock, and by passing a tax law to make good any pos.
sible contingency that might arise. Last year the posi-.
ton of the State was, that it had reached the limit of its
means, and its administration advocated the continued
issue of more stock. Hence, the uncertainty Of supply
and the probability Of failure, injured its credit. The
new administration have decided that no more stock
shall come upon the market, and placed failure beyond
the bounds of possibility. Hence, there can be no better
investment for money than New York stocks. The fedt-
raj government has created a debt Of $780, 900, 900, ef
which $7, eo0,0 900 is funded to meet that which the Gus.
toms are pledged but the revenue Of the government
10 deficient 10000 900 to $4,000 900 per annum, 9conse
quently the supply of her stock that may come
upon the market is very uncertain, and admit.
ting her credit to be undoubted. The supply
Of stock will have an effect upon its price.
If the credit remains firm and supply sinks the price
70 a low rate, other good stocks must fall In proportion;
but in point of fact its credit cannot be maintained un-
less ample provision is made for its expenditure. It 10
true that the state Of political affairs in Europe may
create q panic which may cause holders of consols and
9th er stock, to sell, in order to invest in American stock,
an operation which the new income tax of the ministry
will encourage, provided their confidence in our integ-
rny can be revived. To effect this, taxation for revenue
il indispensable, but if the suicidal policy of protection
is allowed to mar wholesome measures, there will be
no redemption for the fiscal affairs Of the government.
The immense losses which have taken place in this
country, during the past few years, by the fall of stock,
failure to pay dividends, and the explosion Of banks,
have swept away a large amount Of accumulated capital,
and the actual means for stock investments in this ooun'
try are probably far less now than they have been for
the last ten years. The low prices Of every description
of goods and produce, and the prospective state Of trade
renders capital more valuable in commerce than to be
employ ed in government stock at 9 per cent.