The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-10-02


Total. l2e,7OOOOO 73O2l,O 900 1851, 900
These are about the average prices for the whole
stock of each State at each period. la descrip
tons only the rise is value. In many other
stocks there is equal Improvement For instance,
Harlem Railroad sold at 10, equal to S240oOo, for the
whole stock. 1t sells at AL equal to 100000, for
the capital altogether there is mprov ement OF near
$4oooooOO, in stocks of all descriptions This rise is
attributed solely to the banks, and is called bubble,
which must soon explode. Let examine the actual
movement of the banks of this State. In January ls4s
the stock held by all the banks of this State were as
follows -
Held by free banks deposited with Comptrollers4 Se4
Safety Fund and Chartered Banks ASA. $40
Total stock held January 1 1888, $loo2s, 1913
August l Isi3 II $50 9s7
increase aa26a9
Total loans to brokers, August, ls43, l,43c,O9S
This 81 so 900 loaned upon two or three descriptions
of stocks olly alleged has produced an increase in
value of eli stocks equal to 900 in this
ket. The held by the city banks, follows
January, isas stock held By city banks 1924 a7s
August, lsiS, s,59a,94l
increase. .Sl,oV,lo
Here is operating totally inadequate to pro
duce result of such magnitude, the above table
presents The application of slsOO,OOO to the stock
market, would undoubtedly produce great movement
at any me but unless operating upon the broad
field of the general abundance of money both here and
in Europe, could never have induced and sustained for
such length of tme great change in values. The
stock operations this market have been the
of the rse They the necessary instrument through
which the rise is effected by the undoubed return
fdence end the abundance of money.
The rise in prices has been very great but they have
by means recovered their natural values. For in.
stance Ohio 6s 81 yielding interest per cent
all. = -.
dence Ohio had not greatly improved in consequence
OF the general trade and the rise in pro-
duce smoothing the way for the payment of taxes few
purchases by brokers in New York could raised
debt Of $3O00000 30 cent in value in six months
because the stock the timd would sell and
knock II down again, which they have not done. six
per cent stock in which the public have confidence, will
not continue under par in this market. The rise in
stocks and that going all other articles, is the in
evitable result Of low prices and abundant means.
great argument in favor of fall in stocks, is that
there is foreign market and that gradually all our
stocks will here II is this very circumstance
will carry stock in few to enormous prices
The general feeling in Europe is undoubtedly, to
send home stocks and eminent men, and great auho
rites there of opinion that feeling will increase
rather than diminish, until have recovered all our
stocks. This operation is destined to make the New
York stock market vie in magnitude with of the
European cities has been estimated that 100000
Of American stocks held abroad, and that the divi
dends RENTED yearly amounted to $l00000O0 If the
stocks all returned to this country, these dividends
will be retained in this country and seek the New York
market for reinvestment The delinquent interest
due abroad by States alone is $4,000 900. By re-
tanning the dividends in this country, equal
$sOOOO00O will in i've years seek this market for re.
investment instead of going out of the country. If
stocks created, those on the market must
double in value before their redemption. For instance
2o00OOOO0 redeemable in twenty years, will draw an
equal amount Of interest, making $500 coo O0O which
will 60 out of the country in twenty years. without any
equivalent being received those stocks returned
and sold average of rs per cent would make
difference of $3.50 100000, which will pass through the
New York Stock Exchange instead of going to London
large proportion will seek stocks for investment until
they valuable English stocks, which have risen
from per cent in currency deprecated per
1874 say per cent specie TO 80 per cent in specie
This has been the effect of retaining the dividends the
country. Their constant REIMBURSEMENT formed a demand,
which has than doubled the market values Of the
ca.tal. All these elements, which with the un
bounded and unparalleled increase OF natural wealth
this country will hereafter tend constantly lower the
value of money in other words increase the guam.
tity of capital.