The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-09-11
COMMRRCIAL APPAIRS.
MONEY MARKET.


The stock market, during the past week. has been
almost completely neglected by specuators and prices
have been fully sustained In consequence Of the
anticipated speculative ement in breadstus stock
operators have been undecided how to act and the
suit has been very feverjsh state Of things Ii
supposed early in the week that advces by the steamer
then nearly due, would be sufficiently definite to re.
all doubts relative to the harvests in Europe
but hesel anticpations have not been realized and
there is at this moment as much uncertainty as
The effect of this upon the stock market has been
Their unfavorabe 1t has arrested for the time the
return Of confdence-which rapidly taking place
of the distrust which has long exised-a probability
ofarge importations of SPECIE payment OF bread
stufs, had created Several Of the fancies advanced
per cent under the influence of that and local
causes but prices could not be sustained and they
fell back to the starting poiat. II will be per-
ceived reference to our comparative table
Of prices that Erie railroad stock has within
the past two three weeks, advanced six per cent,
and fallen back five, closing within one per cent Of
the lowest point This doubt, extraordinary
to those who do not understand the of these
fluctuations and the why prices rule so low.
1t appears that by the terms Of certain ntracts
made by the company for the construction Of its
road the contractors take certain cent of their
pay in stocks which they throw into the market and
raising money to pay their laborers. New stock is
issued to these contractors the first of every month";
and it win be noticed by spectators that this stock
has made it's appearance in the market Immediately
after its issue The market price Of this stock is
therefore reg almost entirely by the necessities
Of these contracto and has reference to its value
as an investment. The low prices ruling for the
seven per cent bonds Of this company another
item, which, unexplained, may tend to the injury Of
its credit. When the company issued proposals for
loan, quite q number of banking institutions in this
State anxious to get a circulation of their bills,
offered to take the bonds Of the company at par pro-
vided the company would take the proceeds in the
bills of the bank, and pay them out among the con-
tractors and laborers the raro DAD. This the
pany agreed to do and in all where the credit OF
the banks has ntinued sound it has adhered to its
agreement. A large amount Of these bonds conse.
quently fell into the hands Of these banking institu-
tions but it unfortunately happened that they could
not afford to hold them The rapid cont- action which
took place in the circulation of these banks, soon
after they into possession of these bonds COM
PEELED them to throw them upon the market and force
their sale at any price Several institutions in the
interior of the State held hundred thousand dollars
worth each the whole of which were thrown into Wall
street and sold. The banks to which particularly
allude connected with the Canal Bank of Albany
the suspension of which compelled the other banks to
strengthen themselves for any emergency. These
bonds falling into the hands of capitalists who
know their value, and soon the banks get
cleared out, they will find their proper level which is
at least par. There is not q safer better paying
investment in the country. I hey are secured by a
len upon the road and property, which will have cost
including the loan from the State, than eleven
millions Of dollars, which is worth that as much
the Western Railroad of Massachusetts, is worth
what 1t cost. Our object in placing these facts
before the public, is to do away with any erroneous
impression that may exist relative to the fnau-
cal affairs of the company In less than four months
the road will be completed to Binghamton, q dis
lance Of two hundred miles west from the Hudson
river, leaving two hundred and fifty to complete
to connect with Lake Erie. A large portion of the
three million loan from the State expended the
line west of Owego in grading the track, in the
struction of bridges, and in stone work vaducts
&C., all of which is good it was, and will
reduce the cost of that portion ofthe road very mate
rally. We have not, and we do not know, that any
has any idea of what the aggregate cost of the
work, when completed, will be- but we know that 1t
WILL for its length and location be of the cheapest
roads in the country simportsnce to the producers
Of the West and consumers of the East is incalcua
ble and its ultimate to the stockholders
is beyond all calculation. Those who understand the
position Of the company most thoroughly, and are
most intimately acquainted with Its and the
prospective value Of the stock not influenced in
the least by the temporary depreciation in its market
value. The opportunity for making profitable invest
ments at current prices will not be permitted to pass
and the stock will get into the hands ofcsptasts who
will average it with that which cost them par and
make the price low that the rate of interest realized
will be several per cent above the legal rate paid the
| company.
The annexed statement exhibits the quotations for
certain stocks in this market for each day of the past
and the close Of the week previous The tenden
cy prices throughout has been downward but there
has been no alteration of any in but two
railroad securities a6f
QUOTATIONS FOR THE PRINCIPAL Srocxs IN THE New