The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-09-06
FINANCIAL AND COMMERCIAL.

WEDNESDAY, Sept. St

WEDNESDAY, Sept. 6-6 +. M.
The stock market is sustained by the upward move
ment in Erie. The bulls in that stock have taken
hold with great deal Of spirit. The transactions
this morning sum up forty-dve hundred shares. The
company have prepared financial statement for the
first nine months Of the present fiscal year compared
with last. We do not see anything in that statement
calculated to strengthen confidence or even to sus-
tain confidence in the stock. Rendng recovered to-
day the whole of yesterdays decline. Cleveland and
Toledo opeued and closed heavy. There are no out.
side buyers of the stock, and spectators have the
burden Of sustaining prices entirely on their own
shoulders The stock market must give way under the
steadily contracting line of discounts The banks must
call in their stock loans. On specie basis Of about
twelve million Of dollars loans amounting to more
than one hundred million OF dollars cannot be sus
tanned. The fluctuations in some of our Western
railroad stocks show how their market value is
maintained. Hundreds of thousands of dollars
them are hypothetical in Wall street, and it will re
quire but slight stringency in the money market
to destroy all margins and force them out for sale
The good stocks, such as Galena and Chicago, Mich
gan Southern and Michigan Central, and Chicago
and Rock Island, would not be unfavorably affected
until times become pretty tight; but such stocks
Cleveland aud Toledo, Cleveland and Pittsburg, and
most Of the Ohio railroad stocks, the intrinsic value
OF which ID so far below current rates, will fall rapid
ly back as soon as more active demand for money
springs up. That demand will soon be realized. We
shall have before the lst Of November such bank
contraction will sartle some OF the largest holders
OF fancy railroad stocks. Erie may be carried up by
the force ospecuaton several percent Cleveland and
Toledo may for short time longer, be sustained in
the neighborhood of its present market value, but
nothing permanent at anything like current rates,
can be expected in either. Those best acquainted
with the manner in which some Of the Western rail-
roads have been constructed, and the cost at which
money has been raised to pay contractors and un.
earned dividends, have taken care of themselves by
selling out their stock in entire companies and left
the burden for others to carry.
There is certain family, having its headquarters
in this city, known in the street the railroad
family" They have all grown rich in rairoading,
and are said to be the holders at this time Of very
large amount Of railroad stocks They are exceed
ingly shrewd men, and play into each others hands
upon all occasions, and probably better posted
at this day the real merits Of the Western roads
than any other set of men in the country. Now,
we venture to say that, with the exception of the
solitary member who is compelled by the bylaws Of
the company to be an owner Of a certain amount of
the stock, in order to hold his Office treasurer,
the family are not the holders-except upon hypo-
thecation-of Cleveland and Toledo Railroad stock
or bonds at this day to the amount Of one dollar.
Doubtless they have been or less interested in
times past but to suppose that they hold on now,
when they can realize at the current high prices,
would be to suppose them what they are very far
from beng-fools. At the same time II is well
known that these gentlemen hold such stocks as
Michigan Southern Galena and Chicago, &c, by the
hundreds of thousands of dollars. They have made
their money in the construction of Western rail-
roads, aud they have invested it in those earning the
best dividends
At the second board there was not much change
in prices Reading advanced ) per cent; Pennsyl-
vana Coal Company, !. Erie Railroad fell of per
cent. II is utterly out Of the question to sustain an
advance in any railroad stock the dividends of
which are not beyond all question and the rate
equal to at least five per cent semannual. Small
dividends on railroad stocks are not satisfactory
The risk in holding such securities, the danger o.
heavy losses by collision and accidents similar to
that on the Camden and Amboy road, the probabili
ties which at all times exist that competition In
some shape will appear, make this class of stocks
unproutaoie inVes-uentS ~ Js""S pc'o" 'oaA pei
cent per annum, and none OF them should rule at
par even with earnings that will justify such divi-
dends
The steamship Pacific, from this port for Liver
pool to-day, carried out $36s,70s in specie. The
Hermann, ON Saturday, will take out a much larger
sum.
A. H. Nicolay's regular semi-weekly auction sale
Of stocks and bonds will take place tomorrow,
<Thursday,) at l2a o'clock, at the Merchants Ex-
change.
The Assistant Treasurer's statement to-day is as