The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-22

Prices, it will be seen, are considerably higher
than they were. The upward movement which WE
indicated last week as being foreshadowed by the
course Of events appears to have begun. The
prospect Of large earnings on the Western roads
in consequence Of the harvest, combined with the
unduly low prices to which many stocks have been
driven by the bears, appears to have at length at
tracted attention, and led to some speculative pur-
chases.
Parties who are interested in the recovery in the
market will however see with regret anything like
a spasmodic rise, or Wall street cornering opera
ton. The tendency Of all CORNERS" is to cause
ultimate depression in the stock cornered: the
short sales of bears, though they constitute pow
erul aid to rising market, cannot alone form the
basis of a permanent advance. If, therefore, th.
operations of bulls in our stock market should
cause prices to advance rapidly before any tapgi.
bic evidences appear of an increase of intrinsic
value in the securities dealt in, it will be safe IT,
look for reaction as sudden as the advance.
1t has been evident for months that many rail.
road securities which are daily bought and solo
in Wall street were selling below their rea'
value. No person of ordinary discrimination neei-
to be told that what the railroads of thi.
country have earned heretofore, they will ear,
sgain; nay, more, that in the future they are
destined to enjoy a traffic as much create,
than that of 1856 as the traffic of that year was
greater than that of 1853 or 1854. The unchecked
increase of populatioD--both from natural canse.
and from immigration and the progressive devel
opement of the country, render this result mathe
matically certain On the other hand it is eoual,v
obvious that the severe lessons of the crisis have
been fruitful of large advantage to the railroads b,
causing them to be administered with more econc.
my and judgment than they were when they had
never known adverse days AS instances we ma,
adduce the New York Central, which, according
to the reports Of its managers has reduced its e>
penses nearly ten per cent since the crisis; and TIL
Michigan Southern, which, under the old reoi,u4
used to spend sl50,000 aud $l75, 900 month 10,
working expenses, whereas now it Is admirably
run for $50 900 month.
Notwithstanding these considerations, the indie
renee of the public to stock speculation has for man,
months left the control of the market in the hands
of the Wall street jobbers and these operators have
continued to hammer prices down to about the point
at which they stood in October, 1857, the month OF
the crisis. 1t is due to the public to say that Will.
they have not interfered with the operations of thu
street to protect the stocks in which they were nte
rested neither have they, as a rule, allowed them
selves to be frightened into selling their stocks
The sound common sense of the great body of rail
way stockholders protected them from this sacr.
flee; the recovery of the railway interest and it,
reorganization upon improved principles, were an
t'cpated by them and properly taken into account.
Hence we find that while railway stocks have dc
cned from $40 to 500 share within the past six or
twelve months, the amount of floating stock in the
street is not greater, and in many instances i,
less than it was year ago.
The prospect, therefore, of a large adj
vance in railway securities has, for some time.
been pretty certain. Jobbers interested in the de-
cline of stocks have displayed no little ingenuity
to prove the ultimate worthlessness of railway pro.
perry. We have been told one day that the Yves,
would cease to have any considerable surplus o.
grain; again, that wheat at rs cents bushel at
Chicago could not travel by rail; again, that there
were too many roads to do the business; again.
that freights were too low for profit, &c. &c. tits
not worth while replying to these arguments; the
event VIII soon speak for itself. Here and there
no doubt, competing lines, built in folly, will ruin
each other For some time, perhaps the railroads
may not make such profits as to engender extrava
garce, and suggest more frauds like those which
helped to bring on the crisis. But, in the main
Northwest will prove a valuable and lucrative
interest, no person who Is capable OF forming
judgment on financial matters needs To be assured
+ OF some years TO come no new r3ilfoads will b. |
)uilt The intrinsic solidity Of the Western and /