The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-06
FINANCIAL AND COMMERCIAL.



The tendency of prices was downward from the
opening 20 the close, with less activity in the
ket than reported yesterday. There was quite a
movement in Miss 1uri State skies at an advance on
yesterdays closing prices In other State stocks
there was very limited business, without material
change in prices. The most important decline was
in Pacific Steamship Company stock. new line
Of steamers il announced to run between San Fran
cisco and Panama, in connection with new line on
this side 10 Aspinwall. This opposition WILL without
dUunt, reduce the charges for travel and compel the
Pacific Steamship Company TO do the same. To
this he attributed the decline in rriee, DAY oi
the stock of that company. The Panama Railroad
Company viii be much benefited by this new line
Of steamers. as competition on both oceans is cacu
lated to give a great impulse to travellers. Bank
stocks do not move up much The fact is orr bank
ing institutions will not make much money for
some years come for some years past and their
dividends will without doubt rule at lower rates
Tie probability nov is that money will become very
cheap and very plenty. The outside rates are
likely to rule considerably below the legal
standard, and the banks viii find it diff cult
to actively employ their funds at an interest high
enough to enable them to pay more than three per
cent semi-annual dividends on their capital. L.
will take years to bring about another such imitation
in credits or such ravenous set Of customers for
money at the most exorbant rates of interest
banks found in the swarms Of railroad companies
up 10 the financial collapse. The banks will be
compelled 70 confne their discounts more 20 the
regular mercantile classes than heretofore. In the
absence Of a demand from that source sufficient 10
give full and active employment TO their overgronn
capitals we shall find the presidents and cashier in
the street buying up stock securities and seeking for
loans where the doubtful character Of the security
byPothece,ed will enable them 70 get more than the
standard rate in the market. State stocks rule at
low points considering the present and prospective
value Of money. There Is not State stock in the
market but that il Of the mos; undoubted security.
The fact that they range from 80 10 100 per cent
shows ths, questions the safety Of the invest
ment We have hardly yet begun 10 feel the effect
Of an oyensupply Of money. The pressure TO make
loans has not yet been very great, but few months
will beyond doubt, give us such
plethora of money in this market that capt.
talste will be glad 70 purchase any unquestonALie
six per cent security at par, either for
temporary or . permanent Investment. Railroad
stocks Of the right Kind must attract capital. There
are 80 few Of this class tina. those enjoying such
character must be favorably affected. Panama. ia.
lena and Chicago, Cleveland, Columbus and Cincin.
rat, New Jerey. Hartford and New Haven, and
,,etbsps one or two Others are the only railroad
stocks this market which can be considered good
permanent investments These we have named are
undoubtcd, and some Of them worth more than
hey are selling for. Only two are above par, while
The others range from 80 90 9j per cent. There are
good many brst class railroad bends the market,
aid most Of them mus; advance in price. The first
mortgage issue by nearly every company has suiIl
cient security 20 make the investment sound one
Where land grant, in the ca=c Of the la Crosse
and Milwaukee Company. exists, In addition 30 the
usual line of road. security for the first mortgage
bonds, il adds materially 10 the eeundness and char.
acter Of the bonds. No one can doubt for a moment
the value Of selected and well located land along the
line Of a railroad, and every one must admit that
q large property 10 situEed, rested In the
railroad company, adds largely 20 the real
and intrinsic value Of that companys bonds In this
repect the la Crosse and Milwaukee Railroad Com
pany have an advantage over all others, and those
who are shre~d and farsighted enough 10 see Il
win soon realize IT, At the first board to day Indiana
State SIS advanced per cent; la Crosse land grant
bonds, 2; Cumberland Coal, /. Reading bonds de-
clined per cent; Pennsylvania Coal Company. Ia;
Pacific Steamship Company, ii; New York Central |
Railroad u Hudson River Railroad 4: Harlem yre. |
TERED q Reading, &; Michigan Central Railroad 2: |
Michigan Southern old, 4; Chicago aud Rock Island
"a, AZ the second board the market was active but
no sery buoyant. Pennsylvania Coal declined 3 |
per cent; Pacific Steamship Company, 4 Milwaukee
aud Mississippi 4; La Crosse and Milwaukee, !. !