The New York herald., 1862-11-03

money aud to the enormous war expenditures.
upon which our present prosperity - mainly
based. they are looking forward to commence
ment Of liquidation. and consequently TO return
to old prices. A day or two will show whether the
first prcnise upon which this bear theory rests be
sound unsound. In the meantime the great
spectators in the street.-the men who operate Tor
large amounts and who lead the public after
them---are standing aIoof, prepared to act as CIR
cumstanccs may dictate. If political events should
foreshadow anything like peace convention, or
attempt at negotiation. these operators VIII at
once begin TO move beldly on the bear side. II
there should be none Of these indications, but.
on the contrary, a prospect of steady
continuance Of the war the old plan,
and with the old financial system, they
will, of course. proceed to operate for the rise.
The position OF affairs in Wall street just now is.
however, very peculiar and anomalous. II Gen.
Mcclellan should attack and utterly discomht or
scatter the rebel army in Virginia, the result
would be an advance in governments and heavy
decline in gold and fancy stocks II. again. McCte-
Ian should be himself badly beaten. gold would
probably RISE and there would be panic in gov
ernments and fancy stocks.
Last evening. and, indeed. throughout the day
yesterday the indications pointed to lower prices
at least for the present. The leading commission
houses were sellers Of stocks. The buyers were
mostly street spectators, OF whom there appears
to be clique in each active stock. Erie, which has
been for some days the manstay OF the market Is
thus maintained at the recent advance of 20 per
cent by steady and persistent buying. and the ma
tura reaction is prevented. In most OF the rail-
way shares speculation seems to work quite indie
pendently Of traffic reports and apparent evi-
dences of intrinsic merit. Thus the shares OF the
Illinois Central-whch is doing very large busi-
ness indeed. and taking more money for traffic
and land sales than it ever did-are heavy, with
downward tendency; while the stock OF the Gale
na--where traffic is fal liny eff week by week,
in consequence of the failure of the WI heat crop
in Central Illinois, and which will probably
be unable to pay its usual winter dividends ac-
tive at an advance. A very large business is be-
ing done in the Michigan Southern stocks, though
no one pretends to be able to figure dividend on
either; while Rock Island, which will probably pay
regular dividends hereafter, is lower than it was
week ago. wild speculation is going on in Cleve-
land and Pittsburg, whose managers could not see
any merit in it few weeks since; while New
York Central which is doing magnificent busi-
ness is neglected and dull. This condition of the
market has not usually proved safe one for out
sders to tempt fortune in stocks.
Governments have advanced and are firm, with
fair prospect of touching higher prices. Itmay safe
ly be said that no other investment in this market
presents as many advantages as the skies of 1881
and the 7.3O notes. Whether we carry on the war
or bring it to close this winter, these securities
can hardly fail to-apprcciate. Peace would put
them to Is 20 pei cent premium; SO would fur
ther issues of paper money. As the interest is
payable in gold, the skies really yield an annual
income Of So per 500. and the 7.3o notes 50 43
per S100.