The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-05
FINANCIAL AND COMMERCIAL.


AvNO SOWHW6NCuAls
MOHRY MARKET.
SUNDAY, Feb. 4-6 p. N.
During the past week there he's been considersble
ease in the money market. The banks have been
steadily increasing their line OF discounts. The
business operations Of the community have been SO
largely contracted during the past six months that
moderate expansion on the part Of the banks goes
. great ways in ~affording relief and accommodation.
To the brokers the banks continue to grant aid and
comfort. Loans on demand, on stock securities, are
freely made, ard speculstors fpd no difficulty in
raising the means to carry o respectable amount Of
the faDcies. This does not, however, halp the mar
ket much, for outsiders arc not disposed even where
they have the ability, to touch any Of the railroad
stocks offered so freely at the stock exchange. The
Developments recently made In the Harlem Com
psny, the complete annihiIstion Of the stock OF the
New Haven Company, the enormous sssves paid by
tie Erie, New York Central, illinois Central, Hud-
son River. and In fact by every railroad company
in the country, for money to meet their current
expenditures, have utterly destroyed ublio CON
fdence in such investments and thrown their
stocks on the market, where they must con.
tiDue for the sport Of the bulls and bears
Of Wall street. No sane man having oapi
tai to invest, would put II into any Of our fancy
railroad stocks, at any price. There has been
throughout the Union o general bankruptcy Ia all
railroad companies. In many instances it Is openly
and fiankly acknowledged, while In others 1t is dis.
guised, and the stockholders deceived. Tho idea
that the Erie, Harlem, Hudson River, New Haven,
and Reading Railroad companies will ever be able to
pay another each dividend, under the present sys-
A. - a----ss-- - -
these who are unwise enough to suppose tor . mo.
ment that they are or win be productive works
and invest money in them with . view Of dividends,
will not live long enough to realize their antcips-
tons. The entire batch is i~nsolvent. Not one OF
them ever earned the fret dividend paid, and they
have now become such enormous, overgrown con
Germs that the running expenses and interest on
indebtedness win absorb the aggregate gross
earnings. Had they been properly managed from
the start, they might possibly have paid small divi-
der d. annually, but the cost Of each is on an average
more than double what II should have been, and the
net earnings much less than their actual cur
rent expenditures. There Ia not q man con.
neoted with any railroad In the country that knows
anything about the cost Of carrying passenger
or freight, and all their tariffs are regulated without
any knowledge regarding the effect or result. We
have yet q great deal to learn In railroad manage
ment, and the first step to take towards tho TO
demption Of this important interest Il In the current
expenses Of each line. The amount Of debt and
stock ia o more din cult matter to arrange. The
debt 10 likely to absorb many companies. 1t has
already commenced in New England, and must go
on in other Slater. Il has been suggested that the
par value of shares DO reduced, 20 a. to bring down
the capital stock to reasonable limits, and II must be
acted on. It must be carried into effs,t. Some Of
the Oldest railroad companies in Massachusetts have
been compelled 70 pass the last regular dividend.
This tas led TO frequent meetings Of stockholders,
and the appointment of @; mmittess TO seek out the
cause Of the depreciation in the value Of railroad
property and he increase in expenses. The public
MIND appears 70 be fairly reused to the Importance
Of prompt action and the application Of some
effective remedy. TIE special committee appointed
by the stockholders Of the Fitchourg Railroad Com
Iany, have inst made q lengthy report, from which
We make the following extract. II is to the point
srd particularly pupgent =
On the present occasion, your committee cannot re
frain from Tie remark that something ought 20 be said
as to the cause that has led to the AWFUL, ruinous and
melancholy loss IN railroad stocks aud bonds. 1t Is the
opinion Of your committee that the evil commenced on
those roads, now deemed nearly worthless, at the tins
Of their inception, and has followed them throughout
their whole sickly existence, aggravated at times by the
:" as 'Ana1" "ssS ~ snoh m1
agement; but not with roads more fortunate, that com.
msnced well, and must have done well, but for their mis-.
fortune Ia having In their management those not satis-
fed with well doisg, but must grasp at moro. In this
way, either through ignorance, or design, branches were
q curse to the roads that have dsbbled with them In
our opinion, stockholders ought to stop their further in
crease or extension. The roads have further suffered In
erecting extravagant depots, furnishing costly cars, and
In other unwise Expenditures; but let byegonss DO bye.
cones, for they cannot now be remedied. We will, there
fore, turn and look for the causes that at present aliict
the roads whose stock ought to rank In the market with
securities Of the first class, and they would so rank were
hnotse 2 s 2 sen sss sln oonps in1npm az p ss,s se eIi xhisb
must be rectined IL you intend TO make your railroad
property Of fair value, is to pat q stop to the vllsnous-
ly low prices accepted by almost all the roads tsrmi.
rating in Boston, for much Of the passenger and frsigh.
business they do. Those establishing these insane rates,
and longer ~persising In them, are, in the judgment OF
your committee, totally unfit and I'm worthy Of the sta.
tions they occupy, be they presidents, directors, or
ssper.n l,nas Sn o., Tor = appear, , s. TO US sell sridsSs that
no. true to the interests they pretend to serve.
Here are many Of the causes, aud here Ia tbs re-
medy. Nov, IL wants something mors than words.
II viii rot suhi 70 to merely point ont the leskages.
TIE holes muss be thoroughly stopped, MT patched
up. We fear II Ia too late to do the stockholders
much good. Their interest In the railroad proper.
ties Of TIE country Ia deprecated past redemption.
The whole burdsn Of the loss comes on their
shoulders; and 90 il should, for they have been tbs
cole managers, 10 the entire aud absolute exclusion
tf the bondhoiderA They hsve committed ell the
blurders, and should, therefore, bs made TO pay
for IT,
The following 10 q statement OF business at the
United States Assay Office ut New York, for the
month ending January 81, 1856
Deposits Of Gold
Foreign coins. :. ....... e8l, 900 90
Foreign bullion .......... 1900 90
United States bullion lin
GLIDING S220, 600 Of Cali.
: fornis branch mint bars 4,2I3, 729 50