The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-24

of money in the present speculative excitement but
they do not begin to furnish the bulk of the capital
necessary 10 carry on such movement. There is .
vast amount of money in the hands OF parties in no
way connected with the commercial operations OF
the country, who ere DESTROYS of msking it prouc-
tive TO the greatest extent, and who will ultimately
permanently invest immense sums in the best stock
securities of the day. Capitalists and men Of
means who withdrew their money from stock in
vestmenss during the panic of last Fall. are
now looking about for come satisfactory place
put it where il will produce even the legal rate Of
Interest. The rapid and enormous contraction of
business during the past six months has released
from commercial channels large amounts of money,
which are now finding their away into stock securi.
ties The credit system for the moment is pros
trated. The daily returns of the Clearing House
show reduction OF One-half in the daily banking
operations OF this city, compared with July and
August last. AT that time the daily exchanges
among the banks amounted to full S25 900 600, and
now they show aggregate of only about s2 900.
Here we have decrease in the actual daily banking
operations between business men of twelve and thr-
teen millions of dollars. The contraction of business
is clearly shown in this comparative statement. 1t
is, beyond question, decrease in CONNER
cial transactions to that extent; for q strictly
cash business in place of credits would rather in
crease instead of reducing the total exchanges at
the Clearing House, In the smaller channels of trade
The decrease has been equally great that the ag
gregate contraction in business among all classes Is
much larger than that shown ia the transactions Of
the Clearing House. During the period of the high
est apparent prosperity the demand for money to
mense amount. All classes entered so extensively
into the credit system operations time increased
so rapidly, the facility and ease with which liabl
ties could be contracted led TO an imitation in prices
and TO such frequent changes of property from hand
TO hand, that the entire community became involved
in one whirlpool Of speculation Every active bus
in the vortex, and all olved together
In consequence of the extent to which every one
was involved in credits the demand for money to meet
daily payments exceeded the supply, and the
value rapidly enhanced. When so many wanted it,
those who were willing to pay the highest prices got
the first supply. The volume of moneywas in fact
less thar the actual demand, and as this difficulty
ceased the danger of a collapse became more i'm
minent For long time previous to the collapse
these causes We're at work, and the result no one
who calmly considered matters could mistake. The
coming of the revulsion a mere matter of time,
for II was inevitable. The sudden change produced
by the revrNsion, in the demand for and supply of
money, was one of the most extraordinary move
ments of the time. The actual suspension Of com
parativey few large houses-whch, after all were
only about two per cent of the whole number Of
concerns in the country-relieved at once the de-
mand for money and reduced the pressure so rapid
ly that in a few weeks from the first collapse the
ruling rates of interest ranged at the legal points.
Money actually became plenty Immediately after
the explosion OF that credit system which had,
while in operation, been the cause of so much
shining and so much effort TO sustain. The re-
vulsion annhated the largest borrowers. and gave
more money at lower prices to those who bad the
right kind of security TO offer. As the suspension
among the insolvent extended, and the contraction
among all other conc progressed the demand for
money decreased, unt'' the supply finally exceeded
the demand, and we have since had an accumua-
ton greater than ever before realized This state of
things is the result of revulson after long period
of expansion and prosperity. We must not o )k for
a very rapid recovery Of losses very rapid resto-
ration of confidence. II may be months before the
machinery Of commerce gets again in motion, but in
the meantime the immense accumulation of capital
find employment and we see no available or feasible
method but putting it into stock securities. Such
appears 20 be the prevailing impression and such il
likely 20 be te result. After period Of prostitution
when money has accumulated at the principal inan.
cia centres speculation IN stocks Is invarab' the
first movement towards q general improvement.
At IN second board to-day the market was par.
tculary active and higher prices ruled for several
Of the most prominent speculative stocks. Hudson
River third mortgage bonds advanced per cent;
Michigan Central bonds. Z; Pennsylvania Coal. q;
New York Central Railroad. Milwaukee and Mis-
sissipp, L. Hudson River. :; Harlem, d Michigan
Central Railroad, }; Michigan Southern, J. Canton
Company fell off per cent; Cumberland, 4; Erie,
7. After the board tho market was even more buoy
ant, and closed with strong upward tendency. The
closing prices for Hudson River were 30l 81 per
cent; Harlem, l5b Ijl; Cleveland and Toledo, jOi
81: Erie, 363 81. New York Central was firm at
Sc per cent.
The Assistant Treasurer reports to-day as fol-
lows:-
I0al tbs,i35 W
lcal ray menus. 33591 20
Total baencc...... $40 $50 -
The receipts to-day include see 900 from customs
The transactions at the Clearing House today
were as follows
Total exchanges. sl3 zoo 53s 90
I"si oeanoes..'''- .'s.'.......'s....,. b's,5a' %
The Ogdensburg second mortgage bondholders
have organized new corporation. and have elected
Wheeler, President; G. w. Nesmith J. W. Clark, r.