The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-07-18
FINANCIAL AD COMMERCIAL.



a0HEY MAa KEY.
TUESDAY, JOY 17-6 P. NJ.
Tia stock market Ia taken just the course We
anticipated; the course that eve y on mast have
anticipated who has for s,ms weeks past watched
Ma moyesneo,s song ON In financial affairs. Tao
bsaks have been going on steadily for some weeks
in tbi vok Of KIP nsion, and tn y have now
,suohed g. are which oarno; be sustained. line
al d1ccunts of thi,ty eg,s and q half million Of
aolns. In the middle Of July. with dull, inactive
stase az bu iress, an inf .tioa unprecedented In
tia hetory o. ba king in this city. With an active
dsuusad for money, and corresponding expansion
hank credits, we s,oud soon dad cause for alarm.
rAare must be some change in this banking move.
nut. II Is pretty certain that tho banks cannot
extsnd their present ine Of discounts to the limit
n active busnt ss would require. They must re-
duoe hsir call loans and sscom modate tho merca An
tile classss the momsnt demand springs up in thst
quarter In this way they can extend all the favors
to the merchants which may for time be required.
without altering the agu e. Of the aggregate mste.
rally. OF the seventeen MILL ms Increase In bank
loans snoe the 30th Of Dsssmbsr last, thu bulk is ON
the hypchsoaton of stocks. rhis added to that class
OF loans ksyi sus to that time WILL according to
data, rake Of the total full onethird 10 loans on
ssocks. For many months the banks have been
unable to get first GLASS business paper Ia the face
Of that fact No have seen steady expansion in the
discount line. In the osst six weeks-the dullest
in the year-the banks have increased their loans
more than seven millions Of dollars, and no ono can
for q moment doubt that every dollar Of that large
sum hes been loaued on stocks. The speculative
chaxAoter Of the stock m srket dlring that period
il tie best evidence In the world of the fact. The
haCks may be compelled IN dull times to employ
their capital and deposits in fostering stock specu-
lations. for stockholders look for dividends rcgu
laily every six months, but they cannot continue
their loans 70 brokers to The exclusion Of tbs com
neeoial classes, or grant al the facilities both 10
qure In actiye times. The banks havs, Is true,
large speeds reserve, but they muss look to their
deposits. They discount on their deposits ami not
On ths specis which they are obliged 70 keep in
their wants. The De poaits are large, but they viii
b required to move the neil crops. The country
banks have largo balances hare, which will be N
siderahly reduced % the hssvests have besn
secured. We look for an active business through
suk the fall, and an active demand for money from
business for business purposes.
The variations In tho market to-day, compared
with the prices current .. the close yesterday, wee
- foliows:-E bonds, 1875, declined per cent
Louisiana Go, 4; Illinois Central bonds Il; Canton
Csupsny, 4; Nicaragua Transit, q; Cumberland
Coal, :; Erie Railroad, 3; Hudson R iroad, q; Hr
lem, I; Reading Railroad, II; Michigan Southern,
4; Michisan Central, IA; Cleveland and Toledo, Lii;
Chicago and Book Isla1d, I. 1t will be seen that
al stocks were down to-day, and that come Of them
have fallen considerably. Prices viii take the back
track now for time, which will bring most stocks
down 10 about their proper Level.
Al The seco1d board there were large sales Of
Erie Railroad stock q. decline Of per cent About
twenty-five hundred shares changed hands, showing
desire on the part Of holders TO realize. Cumber-
lard Coal fell OF {; New York Central Railroad 1.
Rea6izg Railroad sold o; 94a for the opening The
market closed weak.
The UTICA Telegraph states that the coupons for
Interest and bonds of the Ogdeusburg. Clayton and
Rome RaiIrca d:have not been paid.
TIE Bank Of the Ohio Valley, located q. Rushvale,
Indiana, has recently commenced operations with Q
capital limited by its chart or to 100000. Hon. j.
Helm u President, aud E l. Rice, Esq, Cashier
TAh = tho first organisation under the new Indiana
Law, which csmpels deposit of ITO cents State
Per cent stock and real estate pledges for rs cents
a each dollar Of circulation, thus aording $l35 Sc
sOlity fer 800 issue.
Tie Transactions as The Assistant Treasurers Of