The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-07-15
FINANCIAL AND COMMERCIAL.


MONEY MARK r. r.
FRIDAY, July l4-sP.M.
Tho dulness IN the market continues, with further
decline in prices. Erie declined Central n Reading
TX; Cumberland a. II is understood that the stock
which Mr. Purdy has bought and is unable to take.
Is being pressed for SALE Until this 10 disposed Of the
decline viii continue. Money remains yesterday,
abundant prime securities and mercantile paper
but not to BIO had ct all second rate coateras The
belief that the market will benefit by the Mexican
seems DO passing away rather the anticipation Of
future injury to have counteraced the tendency
In favor Of present Improvement
In point Of fact healthy rise in the market value
OF stocks can be expected until radical change is
effected in system OF railroad anancering. so long
railroads continue to borrow money for the purpose
Of paying dividends railroad investments will always
bad and stockholders viii always be victimzed. The
three great failures which have recently taken place
substantial proof that present suffering is due to
that cause and that alone. We have had failures
among dry goods grocers indeed merchants Of
any kind tho which have stopped payment have
bean Mr. To snshend who had been buyer Of railroad
stocks for rise, and who failed because they fell in
stead Of rising; the Sshuyers who railroad con-
tractors, and who failed because they could not
carry the railroad bonds they had received
in payment Of their contracts and Messrs Dclaunay
lseln Carter bond brokers' who failed like the schuy
lers they could not carry the bonds they had
taken from railroad companies, and agreed to trade of
and retail to their customers Railroads the rock
which al these split. There Is imperative
why railroads should be a bad investment On the
trary pruden,ly managed and udicously located they
ought to pay and Of them have paid and still pay,
hands return their cost But this has not suf
feed railroad operators. fatal desire to initiate
the market value Of their stock has in almost every in
stance induced directors to declare dividends before they
were earned and to borrow money to pay them The
money not borrowed for the stated purpose paying
a dividend The pretext assigned is usually the
construction Of branch lines, the laying Of double
tracks, something Of the Sort but every
in Wall street knows perfectly well that the bonds
issued and the cash obtained solely and altogether
in order that It may be distributed among the share
holders in the shape Of q dividend. There is but
class of individuals who benefit by this system and that
is those shareholders who sell out Immediately after the
dividend has been paid. All others robbed by the
process Honest sha rehoders who receive the dividends
in good faith robbed by finding that the financial
scheme very dprecaes the value Of the stock and
that dividend Of four per cent costs them fall Of ten
in the market price Of their stock The public robbed
by the enhanced value which constant railroad loans
give money thus rendering 1t hard matter for
chants and others to obtain accommodation whom, with
out this constant drain market by railroad enter
prises the market would be easy In TACT, every one
except few sharpers-is loser by the system, which
fast becoming general in the railroad world in this
country
1t IL time this system should be stopped and fancy
viii be- We shah rejoice to hear confirmation Of
the that the Reading Railroad devoting the
earnings Of the past hex debts instead o.
declaring dividend and borrowing money to pay debts
The Of three four per cent win depreate
the market value Of the stock for time but in the end
the shareholders will be gamers by the Of
honest policy Why does not the New York Central now
follow the exsmpes Why declare per cent and borrow
three millions at and the time? The directors
Of the Central say that they make half million
a month Why not b content with this for the
present. borrow roney, and postpone double tracks
and now depots till the market Is settled and
money easier had Had the Erie Railroad declared
dividends that legitimatey earned bankers
would refuse to lend 30 cents the dollar Of its
stock after their financial operations, 1t must descend
| still lower in the scale of securities.
Nothing yet the policy which the directors
of the New Railroad win pursue with regard to
spurious issued by Schuy Ter Many people
sn apprshend that the fraud the President win be
followed by further fraud Of the company and that
the innocent holders of certificates which the face of
them appeared valid any issued by the company,
win be cheated out Of what they gave for them. We
trust for the honor Of New York. and the credit of the
directors of the railroad that these apprehensons vii
be verified and that all the stock will be assumed
The statement exhibits the quantity and value
Of foreign dry goods entered at this port for cousump
! ton for warehouspg, and the Withdrawals from ware
house during the week ending and including Thu rsday
July Is, 1854
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