The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-27
FINANCIAL AND COMMERCIAL.


.Hef1 Nasfu nO1 - - IL u X Is II =
TUESDAY. Dec. 26-6 p. M.
There was very buoyant stock mArkst ct the
INIT board this morning, ana good deal OF activity
among speculaton. An tae leading sncies were in
demani ct an advance ranging ffom quarter to
one and aquarter per cent. There were more cash
upsrstions than usual. virginis SIS won't up per
cant Erie Income Bonds, II; Illinois Central
Bonds, 4; New York Central Bonds, /; Nicaragua
Transit, l 1; Cumberland Coal, New York Gen.
sral Railroad, Panama Railroad 1 Erie Ran
road, !; Harlem Railroad. Reading Railroad,
It Hudson Railroad, I. Northern Indiana and
Southern Michigan old and Constru ,ton Stock were
pold today at decline. The declaration Of stock
dividend on the old stock has no doubt dissppoint
cd many holders, and but for the very low price rul
ing for the stock, many holders wood doubtless re-
alize. These stock dividends are not popular, and
Aye calculated to inure the market value Of shares
much moro than an actual suspension for the
TINA Railroad bonds weDe particularly active
to-day, and the sales comprise . greater varie-
~ than usual, at better prices. The improve
uent noticed among the fancies to-day is the
result Of variety Of causes, the principal of
which is the receiptof California gola. Any rise In
fancy paper securities ON such basis cannot be
otherwise than temporary. Nothing but general
bank expansion can fate prices or create any spe
cuative action and as our banking institutions dare
not expand, We must look for pretty quiet times in
Wall street fer some months. It is seen by the
weekly bank reports that gold received from Cad
fornia does OF go into the banks, or rather does
not remain there. Messrs. Page, Bacon & Co. and
MeSsrs. Adams & Co. receive the bulk Of gold re-
mittances fir California. With thsse remistances
come innumerabe drafts on each Of these houses,
payable to ths rsre entatves Of shi pers in Calor
mia, and ths gold Is in this way distributed broad
cast over tina country, gladdening the fresides Of
hundreds Of families, spreading peace and plenty
through many domestic circle II goes into the
strong boxes old stockings and other hiding places
Of the produ lag classes Of the country, giving
them the meats Of paying any indebtedness, and
keeping them in sound and healthy pecuniary con-
dition. 1t is fortunate thing that the bulk Of the
California gold does not 60 into the banks. The
expansion OF rank losns has already been great
enough to bring about revulsion which has para
lyzed every interest and produced widespread bank
ruptcy.
Upon specie basis no greater than existed pre-
vious to the gold productions Of California, the
banks more than doubled their credits. Had the
bulk Of gold from California gone into the vaults
Of the banks the expansion would have been In
greater proportion than it is now or than it has
been, and we should have had, at . later period,
such . CONFUSION a. the Oldest dnancier never
dreamed Of. We should have become so much ex.
pauded upon such basis, that there would have
been no ordinary collapse. It would have been
moro disastrous than anything Of the kind ever b.
fore realized in this country. The banks having
reached the end Of their tether, there came ct an
earlier day revusion. II has thus far been pretty
severe, and we fear the worst has yet to come. We
can, therefore, form some idea Of the ultimate 70
suit Of longer period Of extravagance and specu.
lation, and OF . moro expanded system Of credits.
We should be thankful that circumstances over
which fnsnciers and spectators had NO control
have preserved us from calamity Of much greater
magnitude than ever before experienced. We al
lude to tie disposal Of supplies Of gold and gold
dust from California, to the fact that they have
gone into the hands Of the people, instead Of going
Into the vaults Of our banking institutions. The
banks hsve no more spesie on hand vt this me.
msnt than they had ten years ago, and We hope
they win have less ten years hence. The people
arc comparatively rich. At all events, they have
very few deprecated bank notes in hand, compared
with 1887. The circulating medium Is more metal
lie, and 1t keeps out Of tho banks. The stream IL,
therefore, at its source clear and transparent and
in time vii be so again throughout its entire
course. There are few muddy, dirty brooks run
ming into the main channel which render slightly
impure; but they become settled, the whole win
be cleaner and more healthy. The present revelation
has mot reached the producing classes. The high
prices ruling for Ill sorts Of agricultural products
are enriching the bulk Of our population, and when
the rubbish Of speculation has been cleared away,
and economy has strengthened the consuming
classes, we shall find solid, substantial foundation
10 rest the new system Of credit upon and the ex
perience Of the past win, we trust, serve a. .
beacon 70 warn Us against similar trsnsgression
.from the fixed and unalterable laws Of trade. Any
deviation from theee laws has but one result. A
half . dozen California and Australias at our
back cannot remove the penalty the infringe
ment Of certain laws Of trade, regulating
supply and demand, enforcse. The horrors Of
1887 were lost sight Of even by those who
had passed through them, under the belief that 80
long - CALIFORNIA; gave rs four to Ave millions OF
gold per month, there could not be another revul-
sion. No similarity between the two periods Of
expansion could be seen by those deeply involved in
speculation, and all rushed wildly along regardless
Of the future. They have since learned their mis-
take and II in after years another Ell Dorado should
b discovered the present revulsion will be remem-
bersd, and less confidence will be placed in such
facilities for sustaining an over expanded credit
system.
At the second board the improvement of the
morning was not only sustained, but further rise
realized. Virginia 6's went up per cent; Canton
Co., Il Cumberland, /; Erie Railroad, 4; Reading
Railroad. Z; Michigan Central, 4; Michigan Sou.
thern Construction, /; Harlem,
Tho receipts at the Office Of the Assistant Trea-
surer Of this port today amounted to $780,, 200,
which 100000 was . transfer; payments,
$22s,36l "a; paid Assay ONCE, $62l lO-balance,
>S,s57,sl7 IL.
The inquiry for foreign exchange for remit
lance by the steamship Pacific, from this port for
Liverpool tomorrow, was moderate. Rates have