The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-08-07

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iss to railroad securities Of AL binds, has induced tAs
banks 70 employ mare Of their In dsoounng good
business pspr, and the mercantile community has,
thsrors been much bsnstsd by the recent explosions
Previous to the scnuylr expose the banks loaned
largely can ON railroad stock colsterAls that the
mercantile classes ont short Ia their demands and
hsd to look for money In other quarters but things
changed and the hanks conne the useves more to
their legitimate business This will probably con-
tnue until confidence in fancy stocks returns
when we may look for the usual speculAtions aud
the usual supply Of facilities from the banks II Ia hoped
that long time win elapss before the banks viii again
withdraw their loans from the commercial classes to in
vest them in fancy Stocks such movements
no other than to embarass and obstruc the rega
lar operations Of commerce, for the benefit Of small
cliques Of stock jobbers
The Mexican deposits have within the past two
three DAYS created some talk in financial circ e. but
fears are entertained that withdrawal will hare any
unfavorabe effect upon the money market. The banks
received those deposits upon certain conditions and they
would not make such Of it would produce any d
Acuy when called for. 1t has been iudiciousy appro
pr,ated and have doubt the only effect of payment
In fu would be in the reduction Of specie at the
next weekly statement.
The stock markets. STALE fat and Improbable There
spectators in the street. buyers and few
immediate change. No wants to engage in any
operation the principal object evidently being to get
out Of old with little loss possible. The spas
ruodic movements New York Central Railroad stock
enabled both bulls and bears TO close up accounts
proftably We mean those who have taken advantage
Of the sudden changes The Of imitation has pass
ed away and the market value gradually settle down
The Erie Railroad Company having become the subject
general remark and the statements in this paper
usual canvassed without dicrDina tion will AZ
ford additional evidence to show why there should
exist such extreme distrust and, such ample jusdca
top to prove that convictions from the beginning
have teen well founded. We have always contsnded
that the affairs Erie Company have been managed
In the most reckless manner and, not only reck-
less but that there has been the grossest msrepre
sensations the part Of its managers from the
commencement to the present period, entirely and
most insiaiousiy abusive of the public confidence.
In our recent remarks stated, not only that the
company much embarrassed but that its credit
totally gone In maaing this representation made
speculative declaration; well that the
pany reduced to such exremites that but for the
intervention of some Of its creditors headed by John
Ward Esq It would have been under protest the LIST
of August, for the nonpayment of its interest The
Board of Directors which met few days previous to the
1st adjourned with the conviction that there
prospect of relief from any quarter, Mr. Ward having
informed them that the necessary funds could not be
obtained on the company's credit, and that, unless
he could succeed in the negotiston then pending for
the sale Of the six thousand shares of the Buffalo and
Lake Shore Railroad Company, terms much below
the estimate made it would be utterly out Of the ques
ton to raise the money In this position the Erie Com
pany stood for days. They could not SELL except
through the fundamentally of creditor interest, and
not even without enormous sacrifice. The stock
l~lk ar< E~to~
about had to yield to the and be sold at
about $51o O00 something about thirty per cent dis
count This is not, however, the whole of the story
In making the sale, the creditor purchasers
had to provided for, thus leaving to the company
equity Of redemption, in the shape Of balance.
which they were undoubtedly too happy to receive.
the company making money out Of it, as has been
falsely boasted how we would ask did it happen that
they should be compelled to resort to such disgraceu
sacrifice The reply is ready, and has always been
best acquainted with the process Of rail
road business, our railroads have and never
viii be endure with credit the heavy burthens Of
stock and debt with which they encountered In
single negotiation to have been forced to s1ch sacri
fee only shows that there other alternative than
bankrupt and therefore avoid that immediate dsho
nor while large contracts st pending that have not
matured the company had to be temporarily preserved
until all the golden eggs laid and Matched. Under
thsse circumstance 1t il easy to perceive that there
will be forced dividends; In fact, we have rea-
to conclude that the existing stock specu-
la,ions shall have out there will be general resig
nation Of the entire batch Of directors 1t lie idle for
gentlemen to hope much longer to impose the
munity and therefore predict that It viii be very
long before necessity win arise for general meeting
Of the khoders, not emily to choose set of d.
rectors, but to devise proper ways and to raise
some few additional millions.
The commercial news by the Atlantic is unimportant
On the oath Mordsy there auctuation In the
funds owing to the settlement Of several short
tracts and consols touched s3 They FELL horeyer
and closed about 92s, which the average price
Saturday. The following table shows the fluctuations
during the previous week.