The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-10-07
FINANCIAL AND MMERclAL.


TUESDAY. Oct. &c p. NJ
There is more activity in money. growing out Of
the increase of speculation in stocks and merchan-
disc. aud brokers' pay six per cent willingly for
call loans. while spectators pay seven. Most Of
the leading lenders exact margins of Is rs per
cent in lending on stocks practice which gives
solidity to the market and is really calculated for
the best interests OF the borrower. II is not .
little amusing. however TO witneas the discriIni
nation exercised by some Of The old lenders, who
ask only ten per cent margin in lending on bank
or insurance stock, but exact twenty five per cent
in lending on railway stock representing pro-
perty that is earning 20 a 26 per cent per annum.
Gold continued to advance to-day, and sold as
high as l47H, closing at five p. M. at l46T. Ex-
change was all the morning at 1917 l62 for
bankers bills In the afternoon II was l61 1917
The advance in gold of 4H per cent In two days,
is Of course too rapid to hold, and whatever may
be the ultimate course of the market, reaction
may now be looked for. This last upward move
ment is mainly due to speculation. The inquiry
for gold for export and for duties is lively but
not lively enough to force up the price at the
rate Of two per cent a day. All this month the
November coupons on the $40 bonds will be
receivable for duties, and will measurably re-
lieve the inquiry for gold And furthermore, the
recent advance in the premium has had the effect
Of stimulating exports Of produce and merchan
disc, and of largely increasing the export Of
American stocks, thereby swelling the supplies
of bills. The steamer on Saturday took
out good many stocks. and the China
tomorrow will probably take out not less than
half a million, and perhaps three-quartcrs of q
million of securities--chiefy bonds of 1881 and
500 bonds. At the current rates Of exchange
capitalists in Europe can make an excellent ope-
ration by buying these short bonds, which are
payable in five years in geld; and the shrewd
bankers Of Holland and Germany are taking them
freely. Some Erie, Michigan Central ard New
York Central arc likely going out as remittance
The stock market was strong to-day, with some
rregularity. A very vigorous effort was made 10
depress old Southern, probably in the interest of
parties who are short of the stock, and the price
was at one time as low IS, against 8Sl14 last
evening. The talk of the sellers was that an in
junction is to be got out against the recent now
issue. Any such application as this would be, in
effect, request to tho court to compel the
Michigan Southern directors to buy back
the new stock issued which they can
do at profit to themselves OF shout half million
dollars. This would not be very cruel penalty for
them to undergo. But the fact is. all this talk
about injunctions and legal proceedings is mere
nonsense, intended to frghten holders into selling
the stock which the bears require for delivery.
The company's counsel is in communication with
the committee of the Stock Exchange. and is pre-
pared to show not only that the transaction was
perfectly straight and legal, but that it was emf
nently beneficial to the company. The road earned
over $500, 900 last month. October promises
$3.50 900; and the prospect of a a a 8 per cent
dividend on the common stock next February IS
very fair. In the afternoon the stock closed at
86I bid. In other respects the market was strong
this morning Erie was firm; Central rose q, Pitts
burg "a. Rock Island "A, Fort Wayne "a Prairie
du Chen /. Quicksilver q Cumberland l, Canton
q Terre Haute 3, Marietta and Cincinnati LIST 5,
and I'd preferred 4. The inquiry for the low
priced stocks was very active, and several Of them
seemed to promise advance. Ohio and Missis
sippi certificates were q better; the preferred
certificates also rose per cent. At the one P. NJ
call of the public board the features were the
same. Erie rose 4, Pittsburg q, Reading a, Cen
trail "a. and the whole market was strong, with the
single exception of old Southern, which was freely
offered by parties whose object seemed to be how
little. not how much they could get for their pro-
perty. At the second regular board the market
was very strong and Erie rose to 100. other de-
scriptions sympathizilg Old Southern was ham.
mered as before. At the four p. M. call the whole
market was higher, and the indications we're very
marked that we are again on the eve OF period
Of wild speculation. The following were the clos
a.. e a n