The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-26

SW YORK HERALD, TUB
Exchan e. At the first board to-day Tennessee
State 6's advanced per cent? Missouri 6s, Z; Lou
isiana 6s, q; Michigan Central bonds Q; Illinois
Central bonds, III La Crosse land grant bonds, n;
Penns lvania Coal, l; Cumberland Coal, Il Pacific
Steamship Company, =; New York Central, l; Nil.
waukie and Mississippi 4; Erie Railroad /; Harlem,
4; Reading, I; Michigan Central Railroad, I; Pana'
ma 4; Illinois Central Railroad i; Galena and Chca
gol. In State stocks there large business, and
prices closed quite firm. Capitalists and men of
| moderate means are looking for safe Investments,
where their money will be beyond any ordinary con-
| tingency and they therefore more anxious for
security than productiveness. They are DESTROYS OF
putting their money where it con be made avaiable
without submitting to sacrifices. An Investment in
railroad stocks at current prices can hardly be ex
| pected to pay back as much money as paid out on
| the purchase, and parties placing their means in
such securities may not be able to get back again
without serious losses The present financial revul-
sion has taught people prudence and caution and it
WILL trust, long time before outsiders will sink
| many more fortunes in the maelstrom of railroad
stocks. At the best, and as general thing the first
mortgage bonds cover the full productive value of
! our railroads.
| At the second board the market was little better
for some stocks Erie Railroad advanced per
cent in the face of the fact that on the lst of
February the company will owe at least $500 900 of
interest, and not dollar to pay it with. It may
seem natural enough to spectators for rise that
the stock should advance with such load of in
debtedness hanging over it in the shape of unpaid
interest. Harlem advanced /. per cent; Missouri
6's !; Tennessees 6s /; La Crosse land grant bonds
| 2 per cent, and in demand att the close at the
| advance.
The Assistant Treasurer reports to-day as fol.
| lows:-
10 LOU. recep,s sIe'S,s
10. pay menB.. lIo.<o OF
The receipts to-day include SAC 900 from customs.
Z The bank returns for the past week, compared
with those for the week previous exhibit the follow
| ing variations in the aggregates
Increase in loans and discount. 81 SOS $50
nnraSsa N o;;o otSS9
Increase in deposits actual Observation-Disclosures. ,7eF s77
The increase in loans reported is the most impo.
tant movement of the week. The aggregate is now
above one hundred million. In specie the increase is
full as much anticipated The deposits are large
and must increase as business continues. There is
no safe way now of using money except in first
class State stocks and railroad bonds. Many prefer
to let their money remain deposit than to use it
or put in any of the stock securities of the day.
The weekly reports of our banking institutions
showing rapid and steady increase in the specie
reserve, are calculated to convey to the public mind
false impression. At "a glance this accumulation
of specie appears like favorable feature in finan-
cial movements, and the belief is generally enter
tanned that our banks are daily strengthening them
selves in the most important departments. The
facts of the case quite the contrary. The banks
every dollar of the increase in their specie re-
serve. The deposit line has enlarged even more
rapidly than the specie reserve and the banks have
therefore increased their demand liabilities full as
fast as they have added to their available assets
Since October H. 1857, the deposits have increased
$25 600 000 and in the time the specie reserve
has increased 500 500 900. Most of our cotempora-
ries have been deceived by the movements of our
banks, and imagine that these institutions must be
much stronger with 900 of specie in their
vaults than when they had but about ss 900 O0O
They in reality not so strong, for they owe
much more than the increase This is not the only
financial movement in which they have been be-
logged. They labor under the impression that
our foreign debt has been entirely liGuidated.
The following evidence of the rapid liquidation
of our foreign debt" is given by of cotempo
raries:-
I. That New York and Boston have sent forward
sic. 200 600 in gold in six weeks.
2. The Southern ports have put in cotton &c.,
| OjO,OOO.
g. And since the panic" five of the seaboard
cities have accumulated a gold reserve in bank of
$50 900 900, when the amount in at the time
OF the crisis only sl6 900 000 showing of course
gain Of s34 100000
II is Just such statements as these published in the
newspapers of the principal cities of the commercial
world that have tended more than any one thing to
produce the general breakdown that has oc.
CURED. 1t is Just such statements that have pulled
up confidence, which inflated credit, ending in ruin
Let US anslyze these statements little, in order-
First. We 20 back "sx weeks for the specie shin.
ments, which brings us TO tire 27th of November.
The import Of specie growing out of the money pres
sure here before the bank suspension was about
s12 600 900 In New York alone, during the months
of October November and December il was no less
than Sc 2ls ll9 and the amount at Boston was about
the same, while the exports in October from New
York were only 1897 ESQ., and most III not all of that
went TO Havana and other sugar exporting
islands. 1t will be seen that the import Of spe.
Gle from Europe was for a special purpose.
which was not fulfilled TO any extent, and
therefore IL went hack matter OF course, and in
many instances the packages in which il was con-
tanned were probably not opened at all. We are,
therefore, TO deduct from the export Of SIG 200 900
The import OF. IL 900 900
Leaving to account Tor this sum 81 200 900
II is known that about 81 600 600 was re-
mitted from the assets Of the North
American Trust Company, being an sc-