The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-08-06

il should be the bounden duty Of bank anagers at
the present time to pursue a conservative course.
IL was by departing from this safe rule and expand
ing twelve millions in July and August 1857 that the
banks got themselves into q position from which
they could not escape without disgrace. It is the
earnest hope of the mercantile community that
they will not repeat the this year, but that
taught by experience, and remembering the duty
they owe to merchants, they win pursue such
course as will leave them free to be of some SER
vice TO their customers in October and November
next.
Money has grown rather dearer since last week.
Rates are 81 per cent for call loans, with ex-
ceptions at a a where the lender seeks the bor-
rover, and where the securities are of the highest
class; a 81 for first class acceptances thirty a
sixty days; a g for first class double name ninety
four months paper; q 7 for six months paper
with two prime names; Ia 8 for single names,
highest grade; 10 for second class paper; 10 q
II Is for names less generally known. That
| there is hardening tendency in the market is
obvious; but there is really much wealth in this
| country and in this city, and there are 30 few
| enterprises at work which consume large amounts
| of money, so few heavy borrowers and so little
railroad building, that it is difficult to bring oneself
| to look for anything like severe sringency
| in the market for some time to come. By
and by, when speculation is more general,
when people are buying enormous quantities of
| foreign goods on credit, and holding them for a
| profit; when our great railroad corporations have
| got huge floating debts again, and are borrowers
| at per cent month; when a few thousand more
miles Of railway are being built, it will be safe to
| lookfor an old fashioned squeeze in the money mar
| ket. But hardly till then.
| Foreign exchange did not vary much last week.
We quote francs 513! for 60 day bills, and 6.l0s
for short sight. For bills London l09s for long
bills, and lloa for short-the quotation in both
cases being for first class bankers bills. There is
someIgood mercantile exchange in the market at
lOss l, but it is not sufficient in amount to sats
fy the wants of the bankers, and the monopolizing
movements of the bullion brokers are causing not
| little embarrassment to the specie shippers. AS
compared with previous years the rate Of exchange
| is low.
Stocks continued to move upward with steady,
advancing movement till Thursday, when slight
check occurred. 1t does not seem to be expected
that it viii be permanent, though the leading street
spectators have no stocks and are very anxious
to see decline. They argue that stocks have
the law of ebb and flow, they should now fall
back. 1t may be observed that before they rose
10, Is and 20 per cent they had fallen 20, 80 and
40; so that if they are to become as valuable as
they once were (and they cannot fail to do so un.
less the United States are on the decne) they are
only half way on the return trip. In 1856 and
1855, New York Central sold OF los, Michigan
Southern at 95, Toledo at 60, Rock Island at 90,
Reading at so, Galena at ITO, Illinois Central
at l25. The public seem to expect that
we are going to deal in these properties at the old
prices more, and if the roads earn as much as
they did then, and have no floating debts, and all
the benefit of the economies of the past three years
the thing seems quite possible. All experience
proves that il speculation gets fairly under
weigh no one can set any limit to the movement of
stocks; If the public go buying they are now
doing, there will be twice many buyers as there
now are when prices are twenty per cent higher
New York Central has attracted but little atten.
ton of late. Comparatively TO the Western stocks,
il is selling low. The public do not seem to be
aware that the causes which are increasing the value
Of the one must operate quite as effectively
on the other. Ii the great harvest makes
Galena worth Is per cent more than II was,
the same cause win produce the same effect
on New York Central The business of the Central
has been very good all this years this fall 1t will
probably be the largest ever known. The recent
arrangements effected al Saratoga will make a
difference this fall Of half million of dollars TO the
Central and as much 10 the Erie. BY and by the
tide of speculation viii probably strike these
hitherto neglected stocks, and they will resume
their usual prominence among the bulls and bears.
Al.
excitement has affected good and bad alike The
public seems to be OF the opinion that while the
former will be rendered still better by the harvest,
the latter will become worth something. The famous
La Crosse land grant bonds have advanced from
about ten per cent to twenty-six within sixty days
II would be difficult for the spectators 10 say upon
what the advance Is based. The Receiver reports
to the court which appointed him. that the road is
trespasser overa distance of twenty-five miles
the company not having paid for the right of way
for that distance and liable to have their trains
Of cars stopped until II Is paid for. The owners of
the land are constantly threatening to stop the
cars, remove the rails otherwise abate the tres
pass, unless they are paid their demands, which
are not moderate compared with the value Of the
land. The title to the depot grounds and buildings
stands in Selah Chamberlain, and he claims TO be
the owner thereof. The Legislature has passed q
law requiring, under penalties, the road to
be fenced by the lst of April next. This viii
cost $4,000. No part of II Is now fenced.
The eastern division claim TO own the mach.
merry and equipments of the whole road.
Judgment creditors and second mortgage bond.
holders have fled their answers or cross bills deny
ing the validity Of the land grant mortgage bonds
$500 900 of which we're said to be issued gratu
tousy to conciiae certain parties, 81 500 900 at
so, for iron, at double its market value, and
81 500 900 at 80 per cent, which, at N&s very low
rate, produced more money actually expended for
the road than the earlier issues Petitions TO
Congress are now being circulated, and, of course,
signed by everybody in the great Northwest, ask
ing to have the grant of lands made to Wisconsin