The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-01

rage and half million Of dollars per week. and il
strikes US that with such drain our supply must soon
cisl and commercial affairs At all posted can for
momen, doubt We do not look FOR any great difficulty for
time; but If the month Of October passes over without;
pretty general financial novuson calculations all
wrong The present and abundance OF money is the
calm that prtcedes the storm
Towards the close of the month there were large
shipments of specie. The banks fer the previous
two or three weeks had shown no expansion in
loans and the specie basis had varied from week
70 week more than half million of dollars. The
stock market continued active and prices were well
sustained throughout. Up to this time most of the
railroad companies had managed, by skilfu and
reckless fnancierng To maintain their credit in the
market, and blind the eyes and comprehensions Of
their stockholders TO the true condition Of the
finances.
The month Of June opened less favorably than
might have been expected. The speculative move
ment in the stock market which for several previous
months had been active and uninterrupted, now be-
gan 10 show signs of weakness, and spectators for
a rise found il difficult matter to keep out
siders up to the mark. The immense amount of
railroad securities held outside of Wall street, at
high prices, was of strength not easily re-
moved, and the brokers of the Stock Exchange
found support from holders who had some time pre-
yiously purchased for permanent investment at high
prices, which enabled them to keep the bubble in
fsted little longer. The month of June exhibited
throughout series of contests in the stock market
between two great parties. They did not result in
much gain 70 either side. prices ruled, and the
market was at times exceedingly heavy, but money
continued abundant and cheap, and public confidence
pretty well sustained. In certain quarters there
were symptoms Of growing dstrust, but they were
cal character. The banking movement throughout the
month was very uniform. The aggregates of loans
ranged from one hundred and fifteen million to one
hundred and fifteen and half million of dollars In
The specie reserve there was no change of conse-
quence notwithstanding the active specie shipments.
m the last week in the month the specie export
amounted to to So 100000. In the face of this the
banks were free lenders and anxious to increase
their line OF discounts.
The stock market continued active well into mid
summer. The month of July, nearly throughout, was
marked with ease in money matters and considera-
bic activity among stock spectators. The supply
of stock securities Offering for sale was larger
than usual, and outside holders evinced desire TO
realize at the high points ruling but the demand
continued active and prices were well sustained.
II was anticipated that the changes made in the tariff
to go into operation the first of July would create
a more active demand for money and check any up-
ward movement in the stock market, but no such
effect was realized. The heavy importations of mer-
chandse up to July, which had to great extent
been warehoused, were not put upon the market.
There being no duty TO pay, additional demand
Sor money existed and all the calculations of specu
iators in stocks for fall were at fault The Sub
Treasury, therefore, showed no important accumula-
a.
ments Of specie. The enormous importations created
in the minds of far-seeing people apprehensions Of
trouble, but the commercial classes generally did not
heed the signs of the times, and reckessy pursued
their daily operations. No ore stopped to prepare
themselves for the financial revulsion that was so
near at hand. The bank movement rapidly expand
ed in July, with moderate fluctuations in the
specie reserve. The most important move
ments among the railroad companies were
ihe change in the management of the Erie
road, and the effort made 10y the fnanciers of
the Michigan Southern Railroad Company to get up
a corner in the stock at the Exchange. in anticpa-
tion of another new issue. Towards the close of
the month there was a more active expectation of
specie The month Of August brought with ii
period Of great excitement in financial affairs. In.
mistakeable evidences of financial and commercial
ihe most startling character The stock market
opened heavy. AL the old cornering combinations
collapsed and speculation was killed outright With
all this, money continued easy. After few days
financial affairs assumed different aspect. Money
was more in demand. The shipment Of specie in.
creased rumors Of several overissues of railroad
stocks were current and the public mind alarmed
and overshadowed with some vague apprehension
1f IL Lfta pof hot az inn tNn
pointed out the course the revulson has since
taken. We showed that a terrible collapse in
credits in values in everything connected with com
merce must be realized before the close Of the year,
all the movements Of trade the expansion in public
and private credit the enormous European indebted.
ness. the continued excessive and extravagant i'm
portatons the rotten condition Of our railroad inte
rest, the organic disease and arrangement that
existed in our whole financial and commercial system
made il evident TO the most superficial observer that
collapse inevitable at very distant day At that
moment we were upon the very brink Of the volcano.
The rumbngs Of the eruption were distinctly heard.
A very few only took warning and saved themselves
by rapid retreat byrealizing on everything in the
shape Of stock securities and placing the proceeds
in a place Of safety. The bank expansion reached
the highest point the first week in August. The
loans reached al that time the enormous sum Of one
hundred and twenty-five million Of dollars. With
this expansion in discounts there was steady
decrease going in the specie In the first
week Of August the reduction in specie was one
million two hundred thousand dollars, in the face Of
an increase in discounts Of one million four hundred
thousand dollars. From that time the contraction in
bank loans has continued. The specie reserve run
down IN three weeks two and half million Of dol
lars. The Sub-Treasury, notwithstanding the heavy
receipts showed no accumulation, but the amount
of foreign merchandise put upon the market upon
which duties were paid was immense This gave a
great impetus 30 shipments Of specie and the expor
fafion weekly was mite large. The money market