The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-28

10 make at stated periods looked upon their railroad
securities a being available at any moment at their
full cost at least and they depended upon the pro
ceeds of the sale of these securities to meet their pro
missory notes at maturity Now let US look at the re-
suit Instead of these securities being available ut the
proper time, at their cost par value, they were
worth no more than no much brown paper. For
weeks they were actually unsaleable at any price.
The effect OF this is in the numerous large fail
ures. The suspension OF many heavy concerns from
the utter humiliation of valuo in their rail.
road assets, spread to concerns not 80 di-
recty connected with this great interest, and the
failures in this way extended. From this country
it is fast spreading over Europe. The bubble was
stock investments, and when that burst ii ruined
thousands who had been unwise enough to place
their property in such poor representatives. 1t is
folly to talk about defective banking systems credit
systems. paper currency and specie currency. as
being the cause for in all the commercial countries
where the revulsion has extended all sorts of sys-
TENS exist. In places on the continent where the
strictest specie currency exists, the convulson has
been the strongest and the most disastrous. Every
thing in the shape of q financial and commercial
system has given way before the revulson. and IL
has actually in this country had the effect of turning
paper currency Theorists are all at fault, which
is generally the case when the practical operation Of
Of any system il demonstrated.
The stock market closed yesterday very heavy.
There is no movement of consequence in any secu.
rity. The little expansion produced in one or two
of the leading railroad stocks by the different clques
of bull spectators has disappeared, and left them
weaker than ever. In nearly every instance where
;,v,I lo,vx Aka hoe
along the payment has either been passed altogether
or the rate of dividend reduced The New York
Central Railroad Company is in the market for loan
of $500 900, but il has not been announced that it
was wanted for the dividend. The money may be
wanted for some other purpose even more urgent
than the dividend. In the New York Central report
for 1856 find investment of s42i $50 in Buffalo
and State Line Railroad stock. In the report for
1857 we find an investment of 1857 800 in the same
railroad stock. Here is an increase of sl36,650 in
the year. This may be a transfer from some unfor
tunate holders, who upon ascertaning there would
be no dividend, saddled the Central Company with
it. In Erie the tendency is downward. The interest
on the 1862 bonds due January, will not be
paid. These are not a mortgage ISSUE Mich
gan Southern is gradually settling back
to the lowest points The new loans
made by this company have piled an additional bur
den the old stock and ts position now ia perfect
ly hopeless There reports in the street that the
Reading Railroad Company will pass its January
dividend. The La Crosse and Milwaukee Railroad
Company have just completed some very important
financial arrangements. II has sold the Watertown
division for 81 900 to the Madison Fond du Lac
and Michigan Railroad Company. This company
have also taken the Madison and Portage City line,
and will complete 1t upon the land grant applying to
that section. The road from New Lisbon to the
junction, twentyone miles. is to be completed by
Mr. Chamberlain ready for the iron for s35000o land
grant bonds. The iron for the entire line is now at
Milwaukee and paid for. The January coupons of the
farm mortgage bonds will soon be paid. There APP
pears TO be now very little doubt that the road will be
completed to La Crosse by the fall of another year.
The movement in stocks Of Western railroads has
for some days been limited. The money market con-
tinues easy. Any amount offers on call at Eve and
six per cent. The banking movement for the week
will not show much change. The specie reserve has
without doubt reached its maximum point and we
must now look for reduction from week to week.
The expectation of specie il is hoped will continue
active 10 that we can reduce the present large sup
ply and aid the money markets Of Europe.
The expectation of specie from this port last week
was az follows:-