The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-07-03
NEW YORK HERALD, THURSDAY, JULY 8, 1856.

very different. In July 1855, business Etagnanf
contraction had been going for the previous
months. Money had accumulated in the hands Of the
commercial classes and they had for Il. There
were no outstanding mercantile liabilities al that time
consequence Of the collapse in business the year before
and the only way TO employ this idle capital
temporary Investments in stock securities That
ment brought about important expansion in prices;
but when that class of holders realized which they did
when the &C tive business commenced the market
value fell of ten fifteen and twenty per cent and In Oc
tober stocks had settled back again into the hands Of the
brokers at prices that gave rise panic There
very different state Of affairs. The commercial classes
who are the main stay and support Of any mutations
the stock market are now involved in their bu
slness operations TO greater extent than usual
Their liabilities are large, and their credit pretty well
strained They require in the active season and in the
season Of payments every cent Of their means and all
they get from the banks To the demand for dis
counts from this source the banks contract their stock
loans, and force vast quantities OF hypothecated stock
upon the market. This, with the withdrawal OF pri-
yate capital from stock investments, usually has
very unfortunate effect upon the current value of the
leading securities Last July there nothing else
DO with the accumulated capital but buy stocks Within
few weeks from this time, the revival Of business
increase in imporations will compel many large holder
Of stocks TO realize. Tho effect OF such movement can
easily be anticipated.
AT the second board the market generally was lower
Erie Railroad fell of per cent Michigan Southern
Cleveland and Toledo, u Reading, II New York Central
a Cumberland, -; Illinois Central bonds, 4. After the
board Erie stiencd up ltte and at the close 6lx
bid
There was sale Of California State rs at the first
board to-day at 65 per cent seller 90 days This sale
was undoubtedly made in anticipation of further de-
FROM ho toft bo y,,
linquency Of Palmer, Cook Co. is most unaccountable
1t is not doubted for that the money was paid
by the State Treasurer into the hands OF the agent at
the proper time for remittance This isnot the first time
that the holders Of California State bonds have been dis
appointed in the receipt OF their interest and they have
guaraIIe that 1t will be the last. The name OF COL
Fremont h been connected with the house Of Palmer
Cook Co. in the financial operations Of that concern.
The only connections between this banking house and
Col Fremont is in the Mariposa estate. They int
rested in that property. Messrs. Palmer Cook 4 Co.
advanced funds TO carry on the suit for the recovery Of
the Marposa estate, for certain portion of it, if
full Palmer, Cook Co.'s portion cut up into
raj shares and sold TO different capitalists for
advanced to meet law expenses, DC. Palmer Cook Il Co.
became in this way Col Fremons bankers and that the
only interest he has in that house. We have doubt Col
Fremont would be heavy loser in the event Of failure
of that concern. Messrs. Palmer, Cook Wright form
the firm, and the fact that they went through the last
financial panic San Francisco unscathed strengthened
their credit materially. 1t will be days before the
arrival Of another California steamer, and in the
time holders Of coupons must wait patiently. is about
time that States ceased making individuals their agents.
We have had this side Of the Rocky Mountains in
stances delinquency and losses from the mis- appropra
ton Of funds provided by tho State authorities due
time, for the payment Of interest
Albert H. Ncoay Is regular sei weekly auction sale of
stocks and bonds will take place morrow Thursday at
half past IL o'clock, at the Merchants FIX change.
A meeting of holders Of Sacramento City Bonds,
due July J. 1885, is called for Thursday, July at Del
monicos at three O'clock p. NJ, TO take for
the collection OF said honda