The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-11-09
r FINANCIAL AND COMMERCIAL
MONEY MARKET.

mere was qulte reaction the stock
From the openog the close the movement up ward
and the improvement brought out good deal Of stock
Western railroad stocks freely offered and the de-
mand for all kinds rapidly supplied Cumberland
Erie and Reading the most active stocks ou. most
purchases time II will be on reference te
the quotations that the advance to day rapid ~
the decline vt any time during the panic At the first
board Indiana 5s went up per cent; Virginia 5's,
Missouri 6s /; Illinois Central bonds New York Cen
trai 6's 8; New York Central U.s. VI Nicaragua Transit
u: Cumberland, ": Erie Railroad, 2; Panama. 1; Read
ing Railroad, 81 Michigan Central, III Micbigan South
srn, a Gaena ano Chicago IN; Cleveland and Toledo,
Chicago and Rock Island, g. Here Is let up which must
wen astonish the bulls while it will give the bears an
opportunity to put out new contracts upon favor
able terms, which they will without doubt avail them
elves of to extent The basis Of this rise is
rather an uncertain cha acter The news from Europe
cannot be construed favorably. loss of $500 OOC
Dy the Bank OF England during the week in which
GOO from Australia received by no means cal
custed to strengthen the position Of the bank or
rant an advance Of half per cent in consols If this is
the basis Of the rise to-day in this Market it in our
opinion, very slim one-,ne which cannot bear the
weight of more than has already been put upon it.
moderate reaction in stock market for q few days.
we have looked for and should not have been surprised
to rise Of two per cent but rise like that
realized this morning must out and the relapse
put stocks down again to abo4t their old level There
be no permanel cy in such spasmodc movements in
financial affairs There is doubt but that secu-
rites on the market had become unduy depressed that
they had touched pOns below their real value invest
ments, and below what they would have reached had
they been properly distributed emong parties able to
hold; bur they dis.rib ted and parties
holding not having the to carry, shares were
forced the thousand loans called in at the
shortest notice.
The local causes producing the decline have in mea-
sure been removed, but yet have had no legti.
mate influences at work giving stocks upward move
ment There buyers to any extent for investment
no capitalists in the market selecting stocks
bly, depressed and far the Old line are
concerned-thosc who carried up carried along the
loads OF fancy and other stocks the markethey
all cleaned out and many of them laid and stir
The elements of imitation therefore dormant The
banks forced to keep up steady contraction They
bave made mischief enough for the twelve months
An expansion in loans principally to stock specuator
until the aggregate amounted to than one hundred
million of dollars, calculated to give upward i'm.
Ietus 10 prices, and anticpations relative to the
course of the stock market realized Operators for
rise loaded themselves up with every stock the list
because the banks freely loaned upon any securities
offered In few weeks, during the dullest season
Of the year, the banks up this class Of
loans more than ten millions of dollars. So long
as this expansion continued all sunshine the
Stock Exchange-but the moment a contraction COM
mencsd-the moment the managers of banks had ar
ranged their private operations satisfactorily, then
change the face Of he stock market. Loans were
called in rapidly they had been put out. Stocks
hypothecated thrown into the street and sold for
The cur ent rate, and the result panic which
down prices ten, twenty and thirty per cent. The con
III IT. cks nv hank hoa hAau
greater than appears in their weekly statements 1t still
going and we have doubt the aggregate bank Dis,
count line will in few weeks be under ninety millions OF
collars AT the time the banks letting freely
stocks VIC caut med spectators against the which
were being spread for them. We warned them against
these institutions their worst enemy At the time
the bank officers running abo ut the street. hat il
hand begging brokers to take their money, pointed
tut the result just clearly 1t now, Specua-
tors then wild with excitement The ease with which
call loans made and stocks hypothetical fairly cap
tiyated them and hey rushed headlong into the whrl
pool of speculation
Every week showed an increase Of half million
in the bank loans and when hundred million was
ported thought given to the the effect
few long headed operators shook their heads and pre-
dc'ed danger. We repeatedly pointed out the result
and endeavored in every 10 place the matter before
the public mind in It's true light There are doubt
this moment thousands who, that the excitement
has subsidized and the second sober thought Is at
recolect distinctly efforts to stay the wild specul
ton going during the bank expansion. We clearly
showed that the demand for money to the great
crops would attract capital from stocks and turn it
into the channels Of trade. No appeared 10 heed
The warnings loudly and earnestly given, bat
all rushed heedessy into the vortex which has
swallowed up many. The bank loans now about
ten millions less than the aggregate sixty days since
and the contraction is still going In the face OF
this fact it is folly to expect that there be per-
manent improvement in the stock market. Without
the aid Of the banks, imitation of any account Is
entirely out OF the question. There may be- after the
bottom has been touched, occasional rallies aud fora
time there may be little activity bat it will not be in
easy matter TO get stosks back again TO their highest
points, Our banks must move along carefully while
The financial affairs Of Europe in such disturbed
dangerous position. steady drain Of f5oo, 900 per
week from the Bank Of England is matter Of too much
Importance to be passed by, and contraction on both
sides of the Atlantic Is forced upon banks well in
iivduals Avices by the steamship Asia only strengthen
US in the opinions have lately frequently expressed
The the embarrassments of Bank Of England
and France still at work in full force and likely
to continue The Asia's advices even more un.
avorable than these previously received. We thai
the Bank Of England continues TO lose largely OF bullion
In the face of large arrivals from Australia Tho advance
in Conso Is accounted for by the ct that the Bank of
England IL purchasing time ami selling for cash. This
the part of the Bank is alone Sufficient
show how hard pressed 1t must be- and the difficulties
# It's positi on.
The demand for money 10 local markets il increas
ing and rates rapidly advancing The mercantile classes
begin to feel the pinch The banks cannot under exist
ing circumstances, afford any relief The shipment o,
nearly million of dollars iu gold in the face Of sterling
exchange ranging below nine per cent is fact fraugh
with much meaning.
At the second board the market for stocks
shade two better. Gaena and Chicago advanced Il
per cent, Nth sales Of only fifteen shares Erie NJ ILL.,
nois Central bonds, u; Canton Company III Cleveland
and Toledo u. Reading fell eff u per cent; Hudson
Railroad i; New York Central rs a. The bears ha-a
doubt deemedi the wses policy LET the ket up
little only to strengthen their old contracts
put out new to stronger parties. grada,,
decline would have prevented many failures.