The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-10-04
Decrease. 81 ,37s GA 1,4Ol $40 ]

Decrease 81 1878 ,614 ], 4Ol $40 1854 19lS,4s4
The loss of specie is larger than expected, but the
reduction in loans likewise very considerable Had the
banks always pursued the policy of reducing their loans
in proportion to the withdrawal Of their gold, their repu
ation for wisdom would have stood higher than does.
The bank stands at lower point than has
been touched since November 1857 when the banks
not paying specie AS trade and becomes active
it can hardly be expected that the will stand
much above SIS 900 900, general rule. This is
quite much necessary for all wholesome purposes
Of trade OF $15 600 900 might not permit the
banks to expand extent of S25 0O00 as they so
fooshly did this spring. but money would rule higher,
and fair traders would less risk of being injured by
the speculative operations Of merchants trading beyond
their the strength of facilities offered them at
bank Much Of the reduction both of loans and Of specie
this week is traceabe to the Merchants Bank, which has
lost the unusual of s64o 692, and, with sagacty
which we commend to the notice of other insttu-
tons, at once reduced its discounts 1898 ,127.
There considerable inquiry for money to day among
the discount brokers' and long paper not popular among
lenders at bank The brokers obtain money freely at
per cent with occasional exceptions at 5s and at I. We
presume that the above bank statement will have ten1
dency render the market this week less easy for
rowers If the banks wise they will protect their gold.
Exchange is not very active for the Boston steamer.
Sterling held at 1106 "a at which rates there is
moderate business francs there is nothing doing No
specie, from present appearances, will go to Boston to-
morrow for shipment in the Wednesdays steamer;
Saturday the usual shipment will probably be made from
here The supply of cottorbls increasing and may
shortly look for produce bills seeking market at
this point
The stock market opened this morning with ami.
nation, which checked by free sales of Ccltra by
broker who has been identified with the bull interest
rt..
holders realizing and caused the price decline
the whole market recede Between the boards stocks
Inactive and prices shade lower. In the afternoon
n further decline took place, and the market closed
heavy The fluctuations of the leading speculative stocks
considerable. New York Central advanced to 81 q
q and closed at s0ai Il. Rock Island sold high
as 67}a, but closed Mt 66s. Galena sold up 10 "a
closing at 1874 bid SO far as the business Of the Western
roads concerned there seems to be particular
for decline in prices The reports from the West show
that business there steadily rcvivng and that the crop
is coming to market at prices which reward the farmer
handsomely. 1t needs argument to show that with
this state things existing the Western roads must do
better this fall and winter than they did last when there
was no business the West and Western crop worth
mentioning to move The true of the late uctua
tons in stocks must be sought in Wall street, not on
the lines of road New York Central for instance has
advanced IL IS per cent within short period, and is
now as high ii when the principal Western stocks
were per cent higher than they are. It is quite
likely that many Of the parties who bought this stock on
the may feel that reaction is now fairly due, and
may sell out in consequence, in which event 1t
would be safe to look for decline in the price
until the stock thus thrown the market found new
home. Central too has been injured by exaggerated re-
ports of the September earnings. With regard 10 the
other railroad stocks there is party or clique moving IN
any Of them The bull parties, which some time since
operated in Galena, Rock Island and two other
Western stocks, have realized their profits and to
be watching for good opportunity to the game
Pacific Mail is mainly sustained by something very like