The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-10-15
FINANCIAL AND COMMERCi AL.

publication In that letter the President OF the Erie Rail
road declares that the Erie neither pay the bonds
when they come due-in February and March next--nor
raise money to take them up He might have said that
every particle of the property Of the company from the
roadway the Long dock and from the rails to the hand
carts fully mortgaged this is in fact what he meant.
Under these circumstances he proposes beg the holders
Of these bonds 70 wait five additional years for payment
Of their principal, and to paste their bonds ten
more coupons for the amount Of interest as
the old ones; and he argues that of them viii
refuse excellent an opportunity Of renewing good
investment Tho question for the second mortgage bond
holders appears be whether they will accept this Offer
forecose their mortgages. It be denied that
second mortgage bond the Erie with nothing before
but 600 GOO is good investment But there are other
points that require investigation 1t is not clear that the
Erie Company is legally entitled against the third aud
fourth mortgage bondhoders, to enter into bargain
whereby the second mortgage shall be prolonged beyond
the natural term Of its existence Much less is certain
that the company legally add TO the amount Of that
second mortgage flor amounts to this) by pastng ten
extra coupons IT, The point would at all events be
worth cortestng and third fourth mortgage bond
holder would be to contest il. IF, therefore the
second mortgages were to accept the terms offered they
might after long litigation find their coupons worthless
and their original security jeopardcd On the other hand
by forecosing and selling out the road there be
doubt but their bonds would be paid renewed,
as they chose If the road were brought 10 the
hammer to morrow, il would in all probability be bought
in by combination Of the third and fourth mortgage
the unsecured bondhoders subject the first and second
mortgages, which would be renewed or paid off What.
the fate of the later creditors the earlier ones
would receive hundred cents the dollar; and they
would thus escape the danger and annoyance of liti
CATION.
Thn af hn
directly concerned but TO the railway world at large,
these Erie bonds the first Of sixty sevenyv
millions Of railway bonds which fail due in 1852 1880 and
1861 The FIRST .stment II the great bonded indebted
created at the start Of the railway mania this
try must be dealt with; and II is highly important
that the subject receive full consideration in due tune.
The day has passed when money be borrowed ceapy
abroad Dtrust has been very naturally created by the
frauds which came TO light last year; and Anne.
rican corporation going to london TO borrow must
have very clean record aud uncommon advantages
10 oer, before hope for The loans which
have lately been made here go to show that those
SO 900 eco s1ooCo goo falling due in the Of the
thirty months cannot possibly be renewed,
ruinous loss. Tie Michigan Central which IN very
healthy condition. found, when IL trouble that il
could rot borrow eighty the Recalling only too
happy TO borrow al seventy the Cleveland and roe"
satisfied with atty Are these the rates at which seventy
Eve millions Of bonds TO be renewed9
The stock market tbs morning buoy ant ad adj
realized almost all descriptions tn, amount
OF money seeking investment; is lrge; and the fur
thcr the foasca advances the general becomes the
belief that mary months to there viii little or
q msnd for money tho ordinary channels of
FOR many years not been Is dircrt as is
u = tai ~,f mercantile fapor uaaer these cir.
.4ls.-.c.s el 3 necessarily drvea Into the
stock market 70 employ their s1rlus funds Tui.
Tor tho steady d,nand for State an3 dividend paying
so.ks which have noticed FOR da.s Tns morning
about $50 orc or state stocks taken for investment
full prices Missouri SKIES as usual being Tie prominent
stock Tie business la railway bonds well dlsttbut
cd and the sn,ncs n lots s'id shows that the pur
llascs hccrr the class n small investors We an
advance IN rCe Ia as and Hudson piver Thirds $500
e the Tre tcnds " 1877 alse sold advance Of
rer Ia Crosse ard grants steady at the re-
ctb small decline The busn, in bank stocks continues
to be large We note advance Il per cent in
Broadway Bank X per cent on Ocean Bank, and gene
rally q rising market
In spocra stocks the market has been buoyant and
active tlreug the day New York Central opened
SAL, higher tsn yesterdays ast Price and remained firm
all day at Tint price. prominent operator soil, this
morning, 5000 shares, seller sixty, at e. Michigan
Southern preferred has perhaps attracted attention
than any otter stock today. opened advance Of
u over last evenings price and rose steadily per
cent, closing steadily a. the advance. Il understood
that friends q the Of the company large
purchasers and there Is talk q that folly
known scrip dividend Tho stock was quiet
former quotations. Reading active the morning
n yesterdays price; In the afternoon dun and
neglected ondeu, draws attention 10 the fact
that tbs road mirat be built Tor years interest
the sum hrs cost s Such believe IL the
fact; The Western stocks generally active to day
Cleveland aud Toledo especially which In the morning.
rcr yesterdays price re acted about
?. in the afternoon with very large sacs. Galcna was
steady; Rock Island Il better Pacific Mail two
per cent The closing prices the street after the
second toard, wcrc-Centra si1t = Reading, ST..
Michigan Central, 57a "a Galets, 80, Panama, liza
"a Illinois Central, 7sk 20, Toledo So :. Pacific
Mail, los. Tho market closed steady.
The exchanges the Bank Cesrug House this morning
81 $40 81 and tho balances 81 qs as, o5 The
remaining Metropolitan currency oerulS4tcs amounting
10 81, 600, have been absorbed.
The following was the business q the Sab Trcasury To-
day
Total receipts. sle5f1 y
~ which from customs. ................ 5000 o.
Total payments l2.igs o.
Total balance. 10 800 40 ~
BY The North star we arc advised q a recovery. on
the 1sth u Of a. Illinois Central shares GA ~ dis
oourU. New York and Erie and Peuns ylyana Central
were likewise better There saes of Ese 81 mort
gage at &C. and the shares atiT
The movement u the banks IN the four PRINCIPAL
cities q the Unon which weekly reports are made
a. shown BY their Las statements, is az ioilows-
No.. yo-, a., ., ~ %, "a e q, g a r7ssis
Bss,cn, oe, N. seysss,e nse,s1 sou, 81 s,ssnsz,
rh,l. .s. ds $1,000 -I2.s,s ie1s. .-..ose