The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-01-05

Inc STOCK mafhet was yosy haoyan, last week
and we have to report a large increase OF public
speculation. As the issue Of 500 900 900 OF lega,
| tender notes led 10 an advance Of % a 100 per
cent in stocks last summer and last autumn, it is
| inferred that another increase Of like or even
greater amount, win now be followed by fur.
Their corresponding upward movement. AT the
South unlimited issues Of paper money have led to
an extraordinary advance in all securities. Rail-
way stocks which used to be sold at IL q 20 per
cent now command 100 in the currency Of the
rebel confcderacy. Bank stocks worth so 100 in
the old times, have sold lately at gao a $50 for
Confederate notes. Spectators argue that what
has happened in the rebel States will happen here;
that excessive issues OF paper, forced upon us by
the exgencies Of the crisis, win produce theirin-
evitabie results in the appreciation Of all securi
ties not connected with or dependent on the
government, and that time win come when
every man Of property will desire to invest
his means In something else than currency These
views have led to 70 general an absorption Of rail-
way bonds that none Of the old first class bonds
can be bought at price which will yield the hold
or over a6 per cent. The only remaining good
bonds which are still al low figures are the issues
Of the reorganized Pittsburg, Fort Wayne and
Chicago and Northwestern roads which, being of
recent creation, have not yet found a resting
place and are still in excess in our market Rail
way shares have advanced on the average s per
cent since Christmas day. Hence last evening
there was a pretty general attempt 70 realize
profits, which led to decline OF a 1ls per cent
from the current prices of Friday morning Most
Of the great cliques which were formed month
ago 10 put up particular stocks have sold out to
the public at profit Under ordinary circum.
stances some uncertainty might be felt with regard
to the course ofthe market. But the prospect Of
new issues OF paper money renders spectators I'M
willing 70 allow their means TO depreciatc In bank,
and prompts every man who has thousand dol
lars to himself by investing il in something
which may advance as the. currency declines in
value.
The chief point Of anxiety just now in railway
matters relates to the Erie statement, which II
shortly TO be made public. Nothing has yet been
asccrtained either with regard 10 it's tenor or the
date Of its appearance. II 10 pretty generally un'
derstood, however, that il viii show that the road
earned In 1852: first, the interest on its entire
bonded debt; secondly, seven per cent on the pre-
ferred stock; and thirdly, ten per cent on the
mon stock The latter amount say VI 100 600,
hos been disposed Of in the payment Of scrip TO
the holders Of overdue mortgage coupons. The
road has now no floating debt and should the
earnings OF 1868 equal those Of 1862 the holders Of
old Erie will divide something like ten per cent,
and the old stock viii probably rule twelve month";
hence a. much above the preferred ~ New Jersey
Central stock rules above the bonds Of the same
concern. New York Central has been rather
active, in consequence, a. Is supposed. Of pur-
chases by bankers and others in the interior.
About seven months ago q number Of bankers
and capitalists foreseeing the depreciation Of the
currency, invested their means in New York Cen
trail In preference to gold. The stock rose In con-
sequence from 30 10 l07. At that figure Il stopped
| the demand for currency at the West, and the in
| creased price Of money having induced most Of
these investors 70 sell out The course of the stock
during the past week leads 10 the belief that these
parties are again putting their money into il. In
| active speculative seasons like the present but
little regard IL paid to intrinsic values In the pur-
\ chase OF stocks. Thus Cleveland and Pi,tsburg,
| whose managers have ever discIained faith in IFS
| value, has advanced twelve per cent in about
| week. while Rock Island, which may fairly be con.
sidered o six 70 seven per cent dividend paying
stock. has barely risen four. Cleveland and Toledo,
| which has never been able to pay Oh its floating
dei,,, and which pays an occasional dividend with
Inang ihroes, has rsen to the neiglborhood o.
| so. while Southern guaranteed--a ten per
cent stock. issued by company that II
earning a surplus over and above the ten per cent
| Ia selling at s6ls. Pacific Mail dropped 20 1873
early last week, the seizure Of the Ariel BIZ the
British pirate Alabama, but recovered TO 1851 .
I37 on the arrival Of the Ocean Queen with specie
Yesterday. The Harlem stocks have been active
lately, without any good reason that il publicly
known 10 all probability they have been the
tools Of spectators. and will decline as rapidly az
they advanced. Michigan Central remains dull at
the recent advance. Border State stocks have
been successfully manipulated by SPECTATORS.
MIssouris rose seven per cent 10 single day, mp.
parcn,ly on the prospect Of emancipation, and
Tennessee. and North Caroliris have been equally
s.tiye. Nothing n the position Of these States
"a, "a yet justify durable Advance 10 thslfbcuds.
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