The New York herald., 1845-12-02
navigation of tn. ohio river,
MONEY MARKET.

MONEY MARKET.
Monday, Dec. 1-6 p. M.
There was very general decline in stocks to-day
East Boston fell of !, Norwich and Worcester l. Read
ing Harlem l. Long Island I, Canton l. Morris Canal
/, Farmers l. Pennsylvania SIS Illinois and Indiana
closed firm at Saturdays prices.
The Delaware and Hudson Canal Company have de-
clared dividend of five per cent payable on the sth
instant.
The engineer selected survey the different routes
the Canandaigua and Corning Railroad has reported
preference for the route the west side of Canaan
daigua Lake. by Bloods Corners, and down the Cohoc
ton through Bath to Corning ag ainst the route up
Creek, through Penn Yam, &c.
The mania for railroads appears to be rapidly gaining
ground in this country. New lines contemplated in
every section of the country and old lines undergo
ing an extension, and are being connected with
other important links in the chain that must bind
closely the various interests of all sections advance
the prosperity of the whole country Railroads are
particularly beneficial in increasing the wealth of the
country They must, in time, entirely supersede the
use OF canals AS the country improves in wealth and
population works become profitable and they
add to those by which they themselves SO
much benefited The aggregate value ofproperty New
England has been quadruped by the construction of the
many railroads in that section Investments have been
improve.
ment of landed property and real estate than to the
profit of the actual investment It can be safely esti
mated that the value of land in the immediate vicinity
of every railroad completed and in active operation is
increased more than the aggregate Of the whole
road 1t is possible that land in the immediate vicinity
OF large cities be reduced in value by the extension
OF railroads into the country but the whole is benefited
the farmer fifty miles distant from the city almost as
conveniently located to supply that city with produce,
the farmer within ten miles, and his farm the refore
becomes nearly valuable. In consideration of this
fact the farmers Of New England along line OF rail
roads, have interested themselves very largely these
works and exert themselves, in every way possible to
Increase their productveness very large portion ofa
he railroad stocks of the Eastern States is in the hands
OF the residents of the interior, where permanently
remains This accounts for the small quantity of the
stock of these companies appearing in the market
As investments, they superior to any other,
and not therefore, knocked about by brokers' and
not subject to those cornering operations and Aucua.
tions in prices that railroad stocks this market
The railroad stocks used in this market much for
speculation must ultimately become good perma nent
dividend paying investments and gradually disappear
from the market It Is only in the crysalis state that
these stocks made foot ball Of when their value
Of very doubtful nature and there wide margin for
an advance or decline Stocks of real value are be.
yond those fluctuations decline of per cent
Investments
who rapidly reduce the SALE and prices soon
return to the former level
The railroad in this country cannot be com
pared to that existing in Europe ough proportion
to our and surplus capital have probably gone
as extensively into the the people of Eu
rope. 1t will be the absence of capital than the
want of inclination, that will prevent rapid ex
tensve an imitation of the mania in this country
Europe We have hardly recovered it is true, from the
effects of the last mania for internal improvements and
must wait the accumulation of capital before we can
go into the movement very extensively The necessary
capita to give an impetus of force this species
of speculation will be provided by the banks il
they continue expanding rapidly they have for
sometime past An expansion of the circulation of the
banks and an imitation Of the railroad mania will go hand
in hand. The latter will depend upon the extent of the
former as fuel must be provided for the fire tina burn
too rapidly when igned All the elements of spe
culation ripe for action, thousands stand ready to
engage at ia moments notice in the desperate spe
culatons the Imagination conceive All that is want
ed is further imitation of the currency, increase in
the circulating medium, to give naaon of credits,
and the will increase with the greatest rapi
dity.
The banks of every city Importance in the country
are steadily expanding their lines of discount and
their paper issues and few years must suffice
10 furnish volume of currency deprecated in vauc
that prices must feel its influence and become very
much inflated. The banks will be driven inte the
complishment Of their own ruin. rivalry exists be-
tween the banks of the city and of the country
pansion in any department in the banks of city leads
to an corresponding movement the part of the
try banks This competition, if it may be called So
draws all the banking institutions of the country into
general expansion, and the result s general revusion
Every thing expands with depreciation in the curren-
cy credits enlarge, and the length of time upon which
transactions are made increases liberal system
OF credits leads to an increased amount of business and
liberal advance in prices until the natural course OF
trade becomes completely deranged and an artificial,
speculative state Of things exists.
The revuson Of 1887 and 3s can be traced regularly
and directly back to the expansion Of the banks that COM
menccd in 1880, and incree sed rapidly to 1887 The
loans and discounts of all the banks in the IT, States in
$780, amounted to 5000 2a. in 1885 to $685. s34
and in 1887 TO 7O2 being increase in seven
years of S324 ASS equal to hundred and twelve
per cent. greater proportionae increase took place
in the circulation. In $780, the aggregate circulation of
the Union amounted to SOL 323 $685. in 1888 to SlO3 692
a9o and in 1897 to S49 1856 $780, an increase Of Ss7 s6
w. equal to one hundred and forty per cent This
pld expansion in discounts and in circulation led to the
revusion OF 1897. which rendered for the time nearly
every bank in the country insolvent Having had seve
raj precedens even in the short history OF
this country we cannot but predict similar results from
similar causes Bank expansions have heretofore in
every instance where they have been general resulted
in complete arrangement of business and veperal
revusion in commercial affairs In every section Of tho
country The facilities for carry ing on great spccua
tive movement now are much extensive than they