The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-09-06
FINANCIAL AND COMMERCIAL.
M NEY MARKET.

FRIDAY, Sept SEP. NJ
The stock market quite buoyan at the opening this
morning, and quite active up the close. There were
not many cash transactions At the first board VIZ
1nia 6's advanced u per cent; Illinois Central bonds, ri
New York Central Railroad, u; Panama, "; Erie, 7s
Reading, * Michigan Central, az Cleveland and Pitts
ourg " Michigan Southern, /; Illinois Central NJ Ga
lena and Chicago ~ Cleveland and Toledo, lH Mlwau
lie and Mississippi AZ Chicago and Rock Island, u The
operations in Erie Cleveland and Toledo and Reading we're
20 some extent, almost entirely time. Illinois Central
bonds and stock active and sold in larger quantities
chan usual The bears have without doubt sold them
selves ht.le short, but not to extent sufficient TO
active demand for stock The sales to day by
no means show that cash purchasers are plenty The
noney market has eased up tle and call loans are
more easily negotiated This has seized upon
by large holders OF stocks a good opportunity
9or realizing, and made the most Of. The only
way to make Il most available is to put out
stock time, buyers option, holding the stock for
delivery The market would be Immediately crushed by
pressure OF cash stock Old holders may, by selling
Zine buyers option, bring in from among the brokers
OF Purchasers and Ia this way put the saddle
another horse. The stocks do not under the opera
zion Of all the speculatons going on either for rise
.Sal leave the street The brokers are piled up with
|1hem and nothing but very easy money market can
give the means for carrying such loads There
from the Outside for this dead weight No outside
thinks Of buying the most inflated class OF railroad stocks
Tor investment. They 60 from brokers' hands to
another at rates. without any regard to value
profits Losses confined the Stock Exchange
There be permanent improvement in the market
value OF any stock until there s outside demand,
which distributes it among small holders where 1t reats
los permanent investment So long twenty, thirty
ond forty thousand shares Of any leading railroad stock
are piled up Wall street In large blocks, high prices
cannot be sustained for any leagth Of time Sps-
|cuation may produce imitation, and the re-
puted transactions may appear extensive but the whole
movement is artificial and Of temporary character.
The daily operations Of clques Of brokers do not give
rny real value any stock security The reported value
imaginary, depends solely upon the ability Of
cain parties 70 keep certain stocks from pressing upon
che market. Where these securities held in such
barge lots the danger Of the supply exceeding demand
very great and any day may In the midst Of active
speculative moment bring sudden collapse Holders
of this class Of stocks in momentary danger They
know not what hour may bring FORTH The operation
any speculative railroad stock the list during the
twelve months is enough to satisfy outsiders that
losing business of the most serious character Take
New York Central Railroad stock illustration. In
first week of September last year. this stock sold at
hoo per cent Since that time the company have paid
per cent in dividends To carry the stock that time
would per cent leaving the cost at the date
his year. to the holder 80 per cent 1t sells at SO
'per cent showing loss on each share Of the stock
of 10 per the year. Every holding share
this stock for investme could have made rather
saved, Is per cent in the past year. Nearly all railroad
stocks rapidly approaching the general fate.
three years since New York Central sold l25 per
cent The dividends in that line have not paid for carry
ing, at that price, and the difference in market value
oday 80 per cent is utter folly to talk about prices
being sustained for this class OF railroad stocks Decay
taken such hold upon them that they must gradually
settle down to points long since reached by the most
prominent and productive New England roads. We see
|svery few months increase Of capital in way.
hs cannot 60 for all tme particularly when the cost
capital have already reached figures far beyond the
capacity Of the road TO make productive An active
speculation may for tme initiate sustain folces but
natural tendency is downward, and later
The grand bubble will collapse.
AT the second board the market active, and
derable stock pressing for sale. Panama RailroaI
advanced 4 per cent; Michigan Central Railroad, x;
chicago and Rock Island, u. Cleveland and Toledo
sailroad fell OF 4 per cent Erie Railroad, III Reading
Railroad, II. After the board stocks generally
over. Cleveland and Toledo closed at 75h per cent;
New York Central, sex; Erie 59sl, and Reading $50.
Those who lave realized during this expansion have
mace q wise and sensible II has been q grand
opportunity 10 put out time contracts aud the reported
transactions show that the bears have awaited themselves
bf IL to the fullest extent
Tho suit against c. K Garrison late agent the Nicara
qua Transit Company brought by the present board ofma
PLACEMENT. has created considerable excitement in Wall
these charges sustained will account for the
vast expenditures made BY the company and explain why
he stockholders remained org without dividends. 1t
XVIII be recollected that few months since did all In
power expose the extravaganza to ray the least Of
&hs compery in the management Of its financial affairs,
rd met with response from the board OF directors.
that time the party now implicated AMI the manage
nent GOOD terms and were striving to ADJUST
matters TO reopen the line Since they have quar-
&reed and now at swords point This accounts tor
khe proceedings Just commcaced. II this suit could be
Followed up should feel that justice though late
bure and tina, last the facts likely 20 meet the
public eye but have idea that win como to any
fhng. Hwlll probably DO privately adjusted In some
Way others have been before and shall lose some
Sich Developments. The company make out q very
tirong casc on pepper.
The earnings Of the La Crosse and Milwaukee Railroad
Company for the month or July amounted 10 $40 1s5 49,
Ens Is greater than the est mate. For the rst eight
OF present lsca year the earnings have been
bs followsF-