The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-10-24


stocks and real estate; but there is no rule in
such matters, and at present the temper OF the
public mind favors the bears. Southern State
stocks shared the general movement today
hhsouris declined 4; virginias, 1, and Tennes-
sees, d. At the close to-day the marke. was ire
gulsr at the following quotations. Virginia SIS, 80
1; Missouri 6's, 76l n; Canton, l7t a 10; Cum
berland Coal preferred, ii 10; Pacific Mail, 90 q
%; New York Central, Sal l. Erie, 353 a 4; Hud.
son River, 90 /; Harlem, l5i l6; do. preferred,
424 !; Reading, 44a I; Michigan Central, 633 a
Il Michigan Southern and Northern Indiana, lsl
d do. guaranteed, AZ /; Panama, 1923 l24; Iii
nos Central, 77g 49, Galena and Chicago, 72E a
70; Cleveland and Toledo, 364 4; Chicago and
Rock Island, 673 SO.
The award of the government loan IS the subject
Of general conversation in the street. II is freely
used by the bears and bulls on the Stock Ex-
change-the former of whom affect to believe that
the smallness OF the premium is indication of de-
clining pubic confidence in the permanence of the
Union, while the bulls aver that the successful
award Of a five per cent loan, at a premium,
affords substantial evidence that fnancers are not
disturbed by the prevalent rumors of secession and
civil war. The public at large seem to be some
Cobb's previous experience as borrower may help
to solve some of the doubts and uncertainties which
appear SO embarrassing. In August, 1858, the first
half of the loan of 1858 was awarded. II was a
$40 900 900 loan bearing five per cent interest, and
redeemable in fifteen years; ii was awarded at an
average premium of "A per cent. Money, at the
time, was worth in Wall street about 81 per cent
per annum; nor was there any prospect of an ad-
vance in the market, as trade was generally de-
pressed, the importations nominal, the export Of
gold small, the bank reserve uDprecedentedly
large, and railway credit shattered that borrow
ing for railway building was out Of the question.
Under these circumstances government five per
cent loan was most desirable security and the
large premium obtained surprised no one. Again,
in January 1859, the remaining half of the loan Of
1858 was awarded 1t went at premium averag-
ing a. At the time money was worth in Wall
street about Al per cent, and there was
tendency toward general recovery in business;
but still there was nothing more than tendency;
the imports were still small the exports Of gold
light and money consuming enterprises extremely
few in number. The third experiment of the Kind
has just taken place. Mr.. Cobb awarded yester-
day ten millions of the new loan (of 1900, bearing
five per cent interest, at an average premium Of
less than per cent. Money is now worth in Wall
street per cent per annum on call, and
though there is no immediate prospect of any vio-
lent change in the market, the enormously in.
creased production of cereals and cotton renders it
pretty certain that we shall have q large trade
next year, a remarkable development Of enter
prise and industrial activity, and consequently .
largely increased demand for money. Hence,
TO city capitalists, the new loan was not
desirable investment; they can do better
by lending money on call in Wall street,
and still better by buying first class paper. This
class of bidders ont of the way, the only customers
upon whom the government could rely were retired
rich men and families, who might wish to place a
portion Of their means in 50 safe security as
United States fves But. in the nrst place in this
country at all events, the class Of people who
satisfied with five per cent is becoming smaller
daily, and by fixing the time for the award so soon
after its announcement, Mr.. Cobb practically ex-
cluded Europeans from the composition; and,
secondly the loan of $780, unlike the loan Of 1858,
and all other United States loans, has only ten
years to rum and is therefore lot at all desirable
security for parties who are in want Of q per-
manent investment There IL another point
which must be borne in mind by those who
wish to understand how the award Of
yesterday was made at 50 low a figure.
There are certain seasons of the year when
money is abundant, and certain other seasons when
Il IL scarce. Every merchant knows these seasons,
and that in average years they are invariable
Now it 20 happens that the two awards of the loan
Of 1858 were both made at seasons when there Is
sure to be plenty Of money in Wall street In search
Of employment, while the award Of yesterday came
at q time when money is invariably in demand. In
the latter part OF January Wall street overlows
with money, received in the shape Of dividends aud
coupons-this was the time chosen for the award Of
the frst half Of the loan Of ls5s; in August the
banks always touch the highest point Of their ex-
pansion for the year-this was the time chosen for
the award Of the second half Of that loan; in Octo-
Der the banks are always contracting, mo-
ney is always wanted by mcrchants-and this
was the time chosen for the award Of the
first half Of the loan of lsGo. There is but
one other point worth noting in reference TO this
matter. Some journals. we notice, remark omi-
nously that all the bids came from the North and
none from the South. evidently intending TO create
the impression that the South has lost confidence
in the Union and In s securities. This Is more in
genious than true. In the first place, Mesrs. Riggs
a Co., of Washington, who are well known to be
the bankers and financial agents Of The richest
men in the South, and who are the treasurers Of
the Breckenridge Executive Committee, were BY
far the heaviest bidders for the loan, and obtained
more Of IL than any other bidder. And, In the
second place, no Southern capitalist Of any saga
city would send his bid direct from his Southern
home; he would employ New York house to bid
for him, and would save money by doing so.
When the award Of January, 1859, was made, the
Bank Of Washington, North Carolina, thought Il
would save q brokerage by bidding directly for
$50 go o. the new loan. Il did 50; but, being of
course ignorant Of the probable rate al which il
would sell It, bid lOs, while nearly all the New
York bidders got oil tLey wanted at 1911. South.
ern capitalists generally are too shrewd to commit
80 obvious blunder.