The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-09
Financial Affairs.

From the Hartford Times, Dec IL
About three months ago, when a considerable re-
depression produced by the discovery of the Schuyler
frauds, the New York papers very confidently stated
that the bottom had been reached, and that the
money market from that time forth could not fail to
since that time has shown how widely they were
mistaken. tor the prices Of almost every kind OF
stock AMI bonds have been steadily settling lover
and lower ever since, with still decided downward
brokers' and bankers at the West and else where,
who bought largely, two and three months ago,
on the supposinon that things had then found
their lowest depth, and that money was to be
copiously coined by the rebound have failed
BY scores, simply because prices have gone
thirty or forty per cent lower than what they
had regarded a. the lowest possible poin,. Those
who dug eagerly into Erie and Hudson at As, rich
mines which must yield in about sixty days, at
least % per cent clear profit have seen them de-
scend with terrific attraction Of gravitation to 80
and &c, and found their margins used up and
Their fortunes gone Shire I'd men who handled
Cumberland at So without mittens, on the strength
Of private information from kno wing ones behind
the scenes, that it was . dead shot for q 20 per
cent dividend at that price, have seen their money
shrink away to 26 with sort Of galloping sump
ton. Plethoric purses emptied into New York
Central at 1872 into Southern Michigan at 100, into
Cleveland and Pirtsburg 1t 100. into Hudson River
Of SIS, into Illinois Central al l40 into Indiana vea
a. l02, into Vrginia and Miss Nri skies at 106 and
on 10 the end Of the stock list have lost from one
half three fourths OF their weight and roundity
Each diurnal quotation OF prices Is to them grave
stone to the memory Of departed dollars.
One OF the most amusing incidents attending sbe
existing state Of affairs ID to finished railroads
which pay no dividends and earn none, and never
can, il venting new pretexts for extra :tinR re
cash from their exhausted and deuded stOckhold-
ers, end paying from - to 4s per cent annual in
terest on their "aosting" debt-as they ludcrously
tsrm their Sinking" debt-when it il Of earthly
consequence to the heeced stockhoder whether
the debt Is paid or not. Boston just at present
appears to be moro heavily loaded down with I'M
profitable and non-paying investments than New
York. Hadley Falls" stock, which vas eagerly
snapped up there at 100, ss great catch, into
which only the knowing ones could be admitted
has vaned to the grief OF many . rotund pocket,
to 30. In four Of the principal Northern roads OF
Vermont, New Hampshire and New York, Boston
which has sunk twenty-five millions of dollars, and
now pays nothing at all, either on their stocks or
bonds. unless IT be in the Shape Of exorbtant sala
ries and shaves to their immediate managers. But
besides these permanent" investments, there are
SIX ont Of the nine railroad companies directly con-
nected with Boston, who will all pass their next
dividends, with the exception Of two or three whose
credit may enable them TO borrow money enough
road explosion in Boston, and one Of the most I'M.
expected, has been that Of the Vermont and
Canada road. This road was leased for 800 years
to the Vermont Central Company, at an nnnual
ICut VI eIkub per Ccub UU It6 COSb-11y0 uU,VNU-
the payment of which was secured by first mort
gage on the Vermont Central road and all it's
property. The mortgage bonds Of the Vermont
Central road, erroneousiy designated in the Boston
papers as first mortgage, are consequently only
second mortgage bonds. coming 10 after the
Vermont and Canada lease. This latter has long
been in request as first rate solid, and well Sc
cured per cent investment, and has generally
ranged at or near par. Last week it suddenly took
downward urch TO SO, to tho great surprise OF all
but the knowing ones, who gave out that the rent
due upon the first of December would not be paid,
and that the Vermont Central Company intended
to contest at law the validity of the mortgage by
which the punctual payment Of the rent was sup
prted to be secured. This Is very fair spsciman
Of Boston 6nancering, when some Of its moneyed
men are caught with hard bargain on their hands
II they are able to repudate security or mortgage
Of this bind which was drawn up in the usual man.
ner by their best lawyers, mortgage which was
treated az perfectly sound and beyond question
when funds were solicited on the strength Of it to
build the road, the question win naturally to
the losers by this act Of bad faith and reputation,
whether other mortgages Of Massachusetts, mmu-
facture are good for anything.
The Chicago Democrat learns that a gentleman in tn
Michigan Southern robbed White Pigeon,
on Thursday, of &c. 900 in Eastern funds which he
bringing to that city to invest in real estate.