The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-07-01


the foaDcal condition of the community are
fourisbing. No man Of any experience In Vail
street needs TO be told that money is worth
more than five per cent per annnm and that
State stocks are not worth two per cent more
than federal securities bearing the same iate-
rest. The high rate at which the canal loan was
sold is no more evidence of the prosperity II
the times than the exorhitant rents of the
spring of 1853 were Of that period. Both were
instances of rash speculation-vauldag aubi
ton o'erleapiDg itself There is this dltferen ,e
between the two no law oblges m Al to take
dwelling house worth $4,000 year, CIR u
store worth $4,000; but there Is law which
comrels the banks to buy State securities, If
they seek to expand their paper. They may be
no better than others; they may be really
worse than stocks floating about in search of a
purchaser below par; no matter. tue law says
they must be bought, and If keen operator lad
the boldness to forestall the market, they may
be run up, by the aid of what Is technically
termed corner, to fabulous prices. Hence the
sale at 1876. Neither the Spectator to whom
it was revealed by the spirits that these were
believe for moment that it would be wise or
safe to give $l1s.76 for rent Of Sc per annum,
to be paid by the State they bid high dgures--
the one party, because they needed the stocks
as the tools of their trade-the other, because
he knew they were wanted, and was probably
engaged to play the monopoly game.
While some people in the city reason falsely
FROM tho ouor1 Of tho mol loan q yoo1 m an W
people in the country seem equally mystitied
as to financial operations here. They take the
siock list, and seeing rise in this or that rail-
road stock, or bond argue that, "in New York,
they are having glorious times. Transactions
to the extent of nearly twenty millions Of dol
lars in week." &C., &c. This argues as much
ignorance as poor Mr.. Clark showed when he
preached against the sinfulness of stock JOB
bing in his first annual message. The price Of
fancy stocks here, and the extent of dealingsin
them are no criterion whatever Of the condi.
ton of the country, the prospects of the crops,
or the proftableness of trade. They depend
purely on the amount of money which hap pens
to be in the banks to be lent out on call at six
per cent. When the banks have plenty of
broker in the street who does not do little
in stocks on his own account buying stock
and borrowing money from the backs to carry
it, and thus rise in prices and an active MIR
ket are inevitable. When, on the contrary,
money is scarce, and the banks cannot leud
the brokers money to speculate in stocks,
prices fall, and those who have not money
that is to say zine out of ten dabblers 10 stocks
cannot operate at all 1t by no means ap-
pears, however, that tightness in the money
market here is Indicative OF an unhealthy condi-
ton Of trade throughout the country. On the
contrary, it often occurs that trade is most
prosperous when New York is most theron snly
drained of gold for the benefit of the rural
cities and it is certain that long continued
case in the money market here, in the face Of q
steady export-indicating as it does sacrifice
Of the country to this one city-must be fol-
lowed by aperiod Of severe stringency. Our
country friends, therefore, who are gloating
over the prospect of flush times, because this or
that railroad bubble is sup" had better do a
little more thinking, and save their money
awhile. The country lives still, but at the same
time the crisis which began last year is not over
yet. Very few will believe us when we say SOL
but when did the many ever display common
sense? Is it not their destiny to break their
necks at intervals?
The taxes are increasing, the canal revenues
are falling off, trade is assuming its old pro
portions, men are launching out on their old
scale, money flows like water in Wall street
and some of the more barefaced swindies of the
last era Of swindes have dared to thrust
themselves once more into light. Yet withal,
the money put in railroads three aud four years
ago is none the less lost; with one or two ex-
ceptions none Of them will pay dividend;
ninety nine hundredths of the corporate enter
prizes of 1853 and 1854 have been abandoned;
trade has not been profitable in more than oae
great branch; real estate is far more Of drug
than operators are willing to allow; geld goes
abroad even faster than it did during the terri
BILE months Of last year, when the export fright
ened mems lives out; the war continues with
increased vigor, expense, and prospect Of injury
to trade: and to add to all, the Prohibtory
Liquor law is about to 60 into force, fatally
iDjuring an extensive branch of commerce,
running etenth part of the population, and
leaving property worth over forty millions
without tenant.
Here is small comfort for the sanguine. Far
better had they use the briet remainder of the
present good time in preparing for the coming
trouble in August and September, than in
launching out into new speculatioas. There is
no neeo Of more expansion or more enterprise.
Let the banks curtail instead of expanding, and
If the move be productive Of no other good
they may at all events rely upoa it that the
them will very soon be glad enough to be rid
OF the burthen. Atheneus tells story of a
jew who. ioreseeing famine in some Medlter
ranean city, bought up all the -four and grain,