The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-07-28
FINANCIAL AND CONNER GAL,
MONEY! MARKET.

SUNDAY, July IT. 4. NJ.
The stock market closed yesterday very much de-
pressed. The heavy shipments Of specie and the
certainty Of the demand for export continuing and
perhaps, increasing has awakened Wall street ope-
rsors to lively sense Of their position. The closing
prices for stocks yesterday show an important de.
cline within the past two OF three days. The guam
tity Of stock pressing for sale is daily increasing,
and the probability is that lower prices viii rule
We have anticipated and predicted this state Of
things. Weeks ago we gave many good reasons for
reaction in the stoc market and now we are in the
midst Of it, The movement Of the banks IL partially
the cause Of the presen. decline. They have called
IN largely, and must continue the contraction. The
drain Of specie at the rate Of two million Of dollars
per week IL q matter Of serious importance. dis.
count line Of hundred and eleven million OF dol
Lars cannot be sustained on such an expectation of
precious metals. This the bank managers know
yery well. and therefore the commencement OF q
contraction. Another fact Of importance 70 be con
sdcred Just now is the near approach OF the fall
business. The demand for money from the com
mercal classes is likely to increase and with that
increase there must be at least corresponding reduc
ton in the call loans on stocks. This must affect
prices, ard az It Is one Of those revolutions in
finances which this market particularly IL subject to-
those who influenced BY them might just a. well
prepare themselves FOR il first as last. The stock
market Ia subject to certain phases at certain sea.
sons, and Il j. not difficult to foresee and anticipate
them. Operators are not in the habit Of looking for
periodical changes. AZ buyers, they think the
market must be continually going up, and az sellers
that II must be continually going down. II does not
follow as many spectators for q rise suppose, that
for h rviu "a -
20 long az the money market continues easy. For
more than three months we have hal money
plenty. During that time there has been steady
and rapid expansion in the bank loans, and during
the past az weeks gradual decrease in the specie
reserve. The banks have loaned largely on sto.ks,
and the contraction when il comes with much forse
must supply the market freely This win operate with
twofold effect against prices. II will reduce the
facilities for purchasing and increase the quantity
Of stock pressing for sale. Operators for rise ap-
pear to have ost sight Of the fact that the time 10
sell IL on the top Of bank expansion. When the
banks run their loans mp nine millions Of dollars in
a. many weeks holder Of stocks cannot make
very great mistake IN realizing. There must be
stopping or turning point somewhere. and when Il
Il reached prices must run down fast az they ran
NJ. The highest bank movement last gear was
reached IN the third week of August. From that
tine 20 the first week IN December the contraction
continued. an i reached nine million IF dollars
Within that time the specie reserve Tell Oh nearly
six million, II doiiars. We look for a similar move.
nent during the approaching season. Il ooEs now
as though would commence II an esrlier day, and
be carried On with more force. The iank Ioans arc
now ten million larger than The highest point
touched 'sat year, With smaller specie reserve.
Our importstious are nov nearly doabs what they
AZ this time last year and the probability 4 that
the shipments of specie viii continue active The posi-.
ton q The Bank Of France i 20 precarous tina, Il
mus. have hoio u any cost Il most lie permanent
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