The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-09

The course of the stock market last week was
upward until Friday morning; decline then set
in, which lasted till yesterday afternoon, when a
rally took place. Prices are considerably better
in most instances than they were week ago; the
decline of Friday. which was mainly due to sales
to realize profits, bears no proportion to the pre-
vious advance. No change has taken place in the
general features of the market, or in the elements
which have caused the advance of the past
few weeks. Money is still as abundant as
it ever was; the amount of money which
is accommodating here, in search of employ
ment, is increasing daily, and nothing
has occurred to shake public confidence in the
market. The law which governs the prices of
stocks is very simple indeed, and no one who has
studied finance can mistake IT, An ingenious cor
respondent expresses il in the formula the price
of any given stock is to par as the dividend it pays
is to the market value of money. This formula,
however, must be corrected first, to guard against
the chapter of accidents which may Unexpectedly
diminish the dividend paid on the stock in ques-
ton, and, secondly, to make allowance for a pos
sible advance in the value of money. If, for in
stance, the formula were assumed to be absolutely
just, it would apply to New York Central as fol-
lows, assuming money to be worth 4 per cent at
-
present.
6 :: $50 100
In other words, New York Central should be
worth $3.50 share. Applied to Pacific Mail, the
result would be
20 4 :: 500 100
That is to say, Pacific Mail shares shoald be
worth $500 each. But, in each Of these cases,
allowance must be made for the chapter of I'M
foreseen accidents and an unforeseen advance in
the value Of money; so that it may safely be pre-.
dcted that Central will not sell at $50, or Pacific
Mail at 500, though they may perhaps both COM
mand much higher prices than those now ruling.
Foreign exchange closed yesterday firm at ll4ss1
q lis for sterling, and 4.9lL q 93A for francs,
bankers bills in both instance. Messrs. Belmont
& Co., the leading drawers on Paris, ask 400 for
their sixty day bills. Gold is worth lO4. For
ssveregns IS 10 have been paid. In view Of the
condition Of our foreign trade-the increase in our
exports, and our moderate importations-
ought to fall rather than rise. The advance Of
the past week has been chiefly due to the
rise in gold, which again has been occa-
stoned by the withdrawal from the market
of large number Of prominent sellers. When
the government first resorted to the issue of paper
money, foreign houses, Judging from past expert.
ence, made haste to purchase gold, both for cash
and time, expecting to it sell at 10 20 per
cent premium. A few shrewd houses in Wall
street, examining the case from more purely
American point Of view, and arguing that the
holders OF coin would not be satisfied TO have IL lie
idle for any considerable period of time, supplied
the demand, and contracted to deliver all the gold
which the foreign firms wanted. The result of the
operation has thus far been profitable to the sellers
and Improbable to the buyers, the interest ac-
count having more Chan balanced the advance in
specie. Within few days crcu instances have
led to the withdrawal from the market-of some
leading bears in gold, and the premium has adj.
vanced in consequence.
The net earnings, over and above all expendi.
lures, Of the Delaware, Lackawanna and West.
ern Railroad Company for the three months end.
ing May ID were s207 1896. The total net profits
for the year ending December, 1861, were 81 02s,
LOG, which is remarkable In view Of the drawbac ks
consequent on the rebellion. The spring months
do generally far less business than the later
months Of the year.
The earnings of The Chicago, Burlington and
Quincy Railroad line were:--
FOR May .xle2 bss
fof May, 169 900
Showing an increase Of. ........,,........ s13 iss
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CITY COMMERCIAL REPORT.