The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-08-06
Financial AHnlrs.

o..
The weekly statement Of the New York banks
shows that the amount OF their loans il still on the
increase, the aggregate being now over ninety-nn
millions Of dollars. II Is not certain that there will
be any material contraction OF bank discounts for two
three months. II IL probable, however. that their
securities viii b somewhat changed and that be.
fore October some ten or twelve millions now loaned
oncnll upon stocks will be called In. and reloaned
upon legitimate business paper, created by the re-
nowed activity in all branches Of trade. For the
present the loans may be regarded rs having reach
Ell about high water mark. Several descriptions Of
Western railroad stocks have also gone UP on the
top of the borrowing wave 70 high water mark. and
having been thus cttitiously lifted Ia some cases
twenty thirty per cent above their intrinsic value.
II follows that when the tide ebbs-tha s when the
loans are called ina shoal Of unwary spectators
and dry on the fats. Each one however.
is sure 70 indulge In the usual hslncinaton
that he is little smarter and keener than bis
brother and though quite confident that oil the
crowd OF Johnny Raws about him will be foored by
the under tow, fully expects, 10 far a. he Is indyi
dually concerned to come on with a whole skin.
The New York Central Company have inst declar-
ed four per cent dividend, though in all probability
they have not earned dollar Of net profit. In com.
petition with the Ere road, they are now carrying
passengers between Albany and Buffalo on portion
little over cent per mile for each passenger rate
which does not begin to pay the cost Of running their
expensive trains much less TO help pay the interest
their large debt, or any legitimate dividends upon
tDeif capital Wulle lueu through Iarc5 are thus
ruinously low they are prohibited by law from re.
ceiyng over two cents per mile for their local pas
senger business. This reduction OF their local fares
from three cents TO two cents per mile made one
OF the conditions, or rather. considerations, which
induced the New York Legislature TO authorize the
consolidation Of the various companies composing
the line. Yet IL Is extremely doubtful whether q
fair Of two cents o mile on first class passenger
trains yields any profit, and when one-thrd Of their
old and very moderate rate OF fare was taken away,
n 10 probable that the whole or nearly the whole
gain resulting from this branch Of their business
was al.o taken away. The road Ia also carrying
vast amount OF freight Ut rates which can yield no
profit, and probably they produce heavy loss.
They carry thousands Of tons % 6our from Buhslo
10 Albany at about the price OF canal transporta-
ton, which, beyond question, are losing prices to
them, for though railroads are far superior 20
water transport in expedition, they oanno. com.
pete with il in cheapness OF transportation. The
more business a road does at such rates, he worse
II IL on. Yet, although this road has probably
earned little dividend o. profit during the last ak
months II Ia not difficult for concern Of nearly
iorty millions n capital and debt which b regr-
lariy adding from one % two Millions cvery year
70 it, cost under the deceptive amc Of ICON
ztEuetson account" 20 declare dividends which are
not earned, - long a. IT, borrowing powes feua.ns
pnimpaired
In TIC cu, 'trost competition nov go3g % 10