The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-23
FINANCIAL AND COMMERCIAL,
MON Ely M II X EFT.
SUNDAY, Nov. 22-6

Inc stock market Closed yesterday with decided
upward tendency. In all the leading speculative
stocks the highest points ruled and an active de-
mand existed from cash purchasers. The bull move
ment thus far has been vigorous one and the party
engaged have become too deeply involved to relax
a moment in their efforts to continue the imitation
With thousands upon thousands of shares of stocks
in hand, which they are able to carry and with the
ability to carry as many more, there is very little
doubt but that further expansion will be realized
The market is notlikey to be pressed with stock for
sale without finding buyers long az the bull party
continues able and willing to buy. But they must
continue purchasers to continue the imitation and to
keep the supply of stock from increasing. This
We look for and have no doubt of the success of the
movement, 10 long ~ the absorption of stock goes
on The duration of this is the only point in ques-
tion. II will we fear be found much more difficult
to sell than to buy, and the effect of withdrawal of
the present demand can be easily imagined The
expansion in prices has already been to an I'M
precedented extent for the same space of time,
and IL would be something extraordinary II some i'm
portant reaction not very soon realized II viii
be seen by the current quotations that prices for
most Of the leading railroad stocks have already
touched points exceedingly dangerous, except for
Wild and reckless speculation. No prudent person
can think of investing in these securities at these
prices and those who have involved themselves a.
purchasers have done so for no other purpose than
the hope of immediate profit. The principal opera
tors on the bull side entered the market "a pur-
chasers at high points. After they commenced
operations for an imitation the market recnied ten
fifteen and twenty per cent. The improvement
since, with the vast purchases required upon every
advance TO sustain Il and TO create further mutations
have not much benefited the position Of the promi
nent SPECTATORS and the probability Is that az the
game now stands II has not been a very profitable
one. The vital importance Of the market touching
higher points. and Of outside absorption il there.
fore evident. The bull party must receive aid from
some outside source or the burden will become too
great for them 10 carry. without such aid any fur
Their expansion in market values will be a dangerous
movement for the higher points prices reach the less
the probability Of new buyers coming in and the
greater the probability of uncomfortable supply
OF stock coming into the street.
In support OF the position of spectators for a rise
even upon present high prices, is the fact that an
easier money market has not been known in Wall
street for years. The banks are free lenders on call
at the rate of five and six per cent per annnm and
the brokers can hypothecate their stocks with IA
facilities required for the most extensive cornering
combinations, and the bulls are disposed to avail
themselves Of this support TO the fullest extent.
How Il will carry them through remains to be seen.
We fear the result will not be favorable or 80 com
Portable the process Of imitation has been and that
many Of the fine visions Of profits will float away
into thin air. This, however, is a matter that may
not N developed for weeks; and in the meantime we
must look TO the position Of outsiders, who are
holders to some extent of the principal railroad
stocks operated in at the Stock Exchange.
The proper point 10 realize is TO outside holders
Of fancy railroad stocks the most important question
for consideration. As general thing, there are
very few holders OF this class Of stocks beyond the
limits OF the Stock Exchange who are not anxiously
looking for an opportunity to sell when they can do
so without loss With many that time has arrived,
and in many instances IL has been improved. Every
advance approaches nearer and nearer the de.
sGd figure with all holders, and II il safe
TO calculate that every three or Eve per
cent improvement in prices brings upon the
street thousands Of shares Of this class Of
security. This unfavorabc element the bull specu
Tatot has TO contend against, and the market has
already become much inflated that the point for
realizing has already been, for 80 many holders
reached and the difficulty Of clearing the market Of
supplies of new stock must be very great. This IL
not only likely to increase, but another and still
greater difficulty Ia likely to arise We allude TO the
utter impossibility of finding new buyers at high
prices. II has invariably been found very easy
matter to buy stocks, either for cash or ON credit and
IL never has been very difficult matter to put mp
prices upon large daily purchases to almost any point
desired; but II has in every instance within cur ex
perience been the most difficult thing in the world
to realize, to find buyers at high prices or to get
rid, at anything like cost, of the thousands upon
thousands Of shares accumulated during the process
Of imitation. This has in all been the cause OF
the break down in every combination aud Of the So
rious losses that follow. Y strikes US that the bu
] stock spectators Of Wall street ore about en-.