The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-08-22
FINANCIAL. AND COMMERCIAL,



The European advices are not calculated to
strengthen confidence in the future course OF 3nan
cial affairs on this side of the Atlantic Our latest
accounts report growing strngency in the Euro
pean money markets, and the advent Of q mania
for speculation. The rates Of interest were more
likely to advance than recede and the abundance Of
the harvests had created an active demand for
money. The movements in bullion were not of
satisfactory character. The demand for the Cont
nent and for the East continued active, and the
Bank Of England parted with supplies soon as re-
ceiyed. The bullion on hand showed no increase,
notwithstanding the large importa!ions. 1t is re-
ported by the last arrival that the country banks
Of Great Britain were drawing largely on
London to supply the demand for money from
the agricultural classes and that this demand would
continue active until the new crops had been dispos
ed Of. similar movement Is going on here. The
country banks are drawing down their deposits to
AID We farmers, aud II Win probably continue
throughout the fall months. After that, we may
look for another accumulation Of deposits to the
credit Of the country hanks, and supply Of money
in excess Of the demand. Tina. stIingency in the
money markets on both sides Of the Atlantic, for
several weeks. will be realized there is very little
doubt. The effect upon stock urties can be easily
anticipated We are in a much better condition,
financially, than either Great Britain or France.
Speculation here is dormant, while throughout Eu
rope il is in active operation In France IL has
already absorbed an immense amount Of capital,
and In Great Britain II IL rapidly spreading. Pro-
ects involving investments TO the amount OF twenty
five TO thirty millions sterling, have already been
presented, ard the public takes iold OF them with
avidity. An increasing stringency In the money
market may check this movement. The Bank Of
England cannot make any further reduction in the
rate Of interest long as this activity In spe,ula
ton continues and II Is not at all improbable that
an advance in rates may be resorted to for the
pose Of anesting further imitation.
The tightness Of the London money market Is cal.
cuated TO give greater impetus to the shipment OF
gold from this country II be shipped at profit
at lower rates Of exchange. and we should not be
surprised to see more activity in the movement OF
bullion. The rapid and steady decline in con-
soils IL the best evidence Of the increasing
stlinRency In money matters In London.
falling OF Of about thrce-quartcrs per cent
In four days shows that the most serious sp.
prehensons are entertained relative TO the future
In financial affairs. This state OF things will put
stop, for the present, to foreign investments on
this eide Of the Atlantic. The accumulation Of
foreign capital reported TO have been going on for
some months, cannot continue with an increase In
the val.e Of money In London. II the stringency
Ia London does not progress far enough 70 call
home capital from this country, we shall escape
serious contraction. As II Is, aud under the most
favorable circumstances, the demand for money
here II likely to be greater than be easily snp-
Piled. Our local afairs will require all the capital
We can command, at the highest rates Of interest.
The probability Of our financial difficulties being in
creased by the condition Of finances In England
and on the Continent is already sufficiently strong
20 excite considerable alarm.
The stock market opened and closed heavy this
morning. There was good deal Of activity, aud
an unusual amount Of cash business was transacted
at the first board. New York Central Railroad fell
Of per cent Elie, I; Reading, 1; Michigan South
ern, I. Virginia 6's advanced per cent Nicaragua
Tiapst !. Illinois Central bonds opened and closed
without change. The stock sold at 1924 per cent,
ca, h. and the privileges at ll3 per cent. The alb
sorption Of the stock foreign account L. going on
steadily. There are a good many orders here limit
ed below the market, but every steamer brings
higher Offers and a. the amount held here Tor sale l.
small, the probability IL that u win all be taken at
our own prices The sales Of Erie were large today,
but IL cosed at q quarter better than the opening
There was good deal of cash stock in the marke
to-day and It will with ,ut doubt be plenty enoug
on the opening.
After the adjournment Of tho board the following
sales Of bonds and stocks were made al auction by
Albert n. Nic,lay:--
40 COO shelby County, Illinois rs Int added. T0I
ocoo Great Western RR (ilis.) LIST most 10 co.,