The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-09-24

A new bear party was 70 sganized last week
mainly on the basis Of the decline in breadstafs
the idea being, apparently, that If wheat fcll below
a certain figure farmers would not send it forward
but would submit to see it rot in their barns The
stocks assailed were chiefly Rock Island, Galena,
Toledo, Illinois Central and the Michigan shares,
all of which are more or less dependent on the
grain traffic for receipts. The market yielded on
most Of these stocks, to the offerings OF the sellers
for decline; it remains to be seen, however,
whether the operation viii prove eventually profit
able. For some months the bear side has been a
losing one. Stocks have reacted from time to
ime, and some have declined several per cent; but
the misfortune Of the bears has been that they have
made most Of their contracts at the lowest
figures of the reaction, and that, as coon
as they had got their line out, prices
recovered. They have labored under the marked
disadvantage Of having the substantial facts of the
day against them. They make the best use of the
Presidential election the bank expansion, the rail-
way troubles Of past years, and SO forth; but
against these there is the irresistible argument that
all the roads are taking in great deal more money
than they have taken since 1856, and that the re-
coveTy OF the Western country insures a continu-
ance Of the increased traffic. II may be very true
that the receipts OF the present time compare with
those of bad year; but the public does not enter
into these fine distinctions. Buyers Of stocks are
not apt TO weigh matters with the nicely of politi
cal economists. When people see railroad receipts
increasing steadily week after week. at the rate Of
80 to so to 100 per cent, they generally as
sumo, on general principles, that stocks must
advance, and they will carry their convictions
| into ool an Nv I;s 4,
renty the secret Of the failure of the BEARS not
outstanding the skill and shrewdness they have
exhibited; and, from present appearances, the fn.
ture prospect does not seem any brighter for their
cause than the past.
The most active stock on the list last week
was Erie, which advanced from 32l to 81
almost without check. The advance appears to
have been due partly to the increased business of
the road, and partly TO the large short interest.
Spectators who knew that the Erie had large
floating debt, and preferred stock TO be created
at the organization, very naturally deemed 80
high price for the common stock, and sold it ac-
cordingy. II was an unfortunate speculation.
A demand suddenly sprang up last week which
the supply Of stock on the street was
insufficient to satisfy; the consequence was
proportonate loss for the sellers. or the future
course Of Erie stock il is very difficult to form an
an opinion. The obstacles in the way of its be-
coming dividend paying property are formidable
in the extreme and il We are 10 judge by compare
son, other stocks, such as Central, Rock Island
and Toledo, are dirt cheap at their present prices
if Erie, with floating debt Of over million, and
a preferred stock Of eight or nine millions TO be
created hereafter, is worth $37 the share. AT the
same time stock speculation is ever capricious,
and Erie has always been a favorite football for
the bulls anc bears; those who know the most
and are the slrewdest often the greatest losers
in this stock.
The earnings Of the Western roads are now going
TO compare with the very fair raii, Of the fail Of
1850, and Il Is not likely that the next few weeks
will show as handsome an increase a. the past
month has done. On the other hand, the traffic on
the New York roads is only just beginning to feel
the effects Of the harvest and IS increasing at a
prodgious rate. The increase on the Erie and
Central this month IS roughly estimated az $50 O00
and next month II is reported that the Central will
take a million Of dollars. The Michigan roads are
increasing largely the Southern Is expected TO take
$50 900 more than last year in September The
Toledo is feeling the effect OF the harves. even
sooner than was expected, and win probably gain
$40 900 or $4,000 this month.