The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-09-01
FINANCIAL AND COMMERCIAL.



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MONEY MARK EFT.
SUNDAY, Aug. 3l-8P.M.
The stock market during the past week has been
very duh and depressed. The tendency of prices
throughout has been downward. and at the close
yesterday lower prices ruled than at the close Of the
week previous. As the market value of the leading
railroad stocks recede, the quantity pressing for sale
increases. Yesterday the sales were larger than In
any day previous during the week, and there ap-
pears to be growing anxiety to realise. The sales
of cash stock are increasing. As the season ad-
vances, and the money market becomes more strin-
gent, holders of stocks will realize without forying
themselves with time contracts. In the early part
of the present contraction, those who were COMPEL
ed to sell for cash, turned round and made pur-
chase Of the same quantity on time, buyers option
80 as to carry it the most stringent period and
secure any improvement that might take place be-
yond. As the probability Of a serious decline in
prices strengthens. there is not SO much disposition
to purchase on time. Holders are selling stock for
cash, with the intention Of waiting more favorable
time to buy in again. The money market is
gradually, but steadily, hardening. The demand is
slowly increasing, and the banks find their deposits
daily decreasing. We do not look for very tight
times before the middle Of October. Up to
that time the market will become more &C.
tive. and the supply of money less. 1t mat.
tiers very little what the movements of specie
may be. The banks may increase their specie re-
not: it will make very little difference in the
result. Last year at this time the banks had much
specie they now have with discount line Of ten
millions less; at that time the deposits were ten
millions less than at present, showing that the loans
were regulated more by the deposits than by the
specie in hand. The deposits of country banks will
soon be rapidly drawn down by the demand for the
movement of produce Advices from the West re-
port great activity in grain, and the probability is
that the volume Of breadstuffs that will come for
ward during the fall season will be greater than ever
before known. This will require large amounts Of
money, and it must be drawn from our banks. The
drain for time will be active, but at the usual pc
Rod 1t will all come back. After running the regu
lar course Of trade it will accumulate again in our
banks, where it will again cause an expansion in
loans to stock spectators and imitation in prices
for stocks. In the meantime, however, we must
prepare ourselves for severe strngency and serious
contraction in the market value Of all speculative
stock securities. The wisest course for spectators
would be to let go, and when the lowest
points have been reached, to take hold again,
and follow the improvement which naturally
takes place after long depression, up to the high
est points again. II is always best to 60 with the
tide in financial affairs. There is no use in at
tempting to stem the current with even unli mited
at command The true secret of success in
the stock market is in following prices up and down
as the changes take place. and those who first fore.
see these changes make the most money. There is
no greater folly in Wall street than to stick firmly
to the same side in stock operations. Even in the
most worthless fancy there are times for the bulls
as well as for the bears. There may be times when
it would not be considered very dangerous trans.
action to buy even worthless stock although
none but those who are daily at the Board Of
Brokers should enter very largely into such hazard
Gus speculations. The market now Is on the down
ward turn, and the true way is to let it run. BY
getting out early possible, the loss, IL any can
be made up more easily on the other end.
II is very difficult for holders to look a.
the market in this light and they frequently sub
init, after waiting long time for reaction to cnor-
nous sacrifices There are many holders Of stocks
who refuse to realize who viii before the lapse
Of sixty days sell at prices three and five per cent
below current rates. These things always have
been, and suppose always win be- 1t Is this class
Of operators who supply the material to keep the
machinery Of stock speculation in motion.
The expectation Of specie from this port last week
was MS follows