The New York herald., 1863-08-26
FINANCIAL AND COMMERCIAL.
TUESDAY, August 25-s p. N.

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TUESDAY, August 25-6P. n.
Money'has ruled easy all day at six per cent
spectators and others who are borrowing money
paying large margins, and being able to do SC
readily. Business paper continues without change
of rates, five to six per cent for first class. and
Certificates of Indebtedness, interest pay
able in currency. at 994
Gold opened Mt l23ss-last nights price-sold
at 1897 at first board, and subsequently, on re-
port of the taking Of Fort Sumter, fell to 1921.
Exchange was durat 1856 1867 in the morning,
but was in request in the afternoon at 1857.
Stocks opened firm on the street, with an ad
vance in the active stocks except Erie. Central
was wanted at l3S, Rock Island at ICY, Illinois
Central at 1897, Chicago and Alton at .S511ls, and
Erie preferred at 10Y. At the close of the call
at the first board we note the following changes:-
New York Central rose ~, Erie %, Erie pre-
ferred ~ Harlem fell off ~; Reading rose 2;
Michigan Central rose no less than s. Illinois Gen.
trail /, Pittsburg IN, Galena "a, Toledo q,
Rock Island "a, Fort Wayne TX, Terre Haute
1A, as compared with Mondays closing rates.
Chicago and Alton dropped three per cent, an in
junction having been served on the treasurer to
prevent him paying any dividend; but the stock
holders are informed that the injunction
was granted without the company having been
allowed a hearing. This, in the minds of the sus-
picious, suggests stock operation. In the mid
die of the day the market was strong, and Reading
advanced to 1876, under large and positive orders
to buy. At the second board general decline
was noticed, Erie being the exception and firm at
1907. This frmness caused general remark, but
is perhaps, not so surprising. It is pretty gene
rally understood that before paying the dividend
on the common stock the directors laid
aside surplus about equal to the next
half-yearly payments on the preferred stock
and the entire bonded debt-a much larger
measure of caution than is usual in rail-
road managers The amount of stock on the
street is estimated at little more than $50, 900,
while the remainder Of $ll 900 900 of capital is
held as investment. Any hope of buying in Lon
don to cover short sales here can only be ndulged
in with a certainty of loss under the operation;
for at the beginnngsof August Erie was 74I, ex
div. in London-equivalent to los here-exchange
being reckoned at l4l; and at the same time the
stock was 1887 in this market. Besides, the
stock had been sold short in London, in expecta-
tons of disaster to the federal arms to such an ex
tent that, on the receipt Of the news
don SPECTATORS had their hands full in
covering their own sales, without having any
stock to spare for unfortunate sympathizers on
this side. Of that portion of the stock in the
street the greater part il under concentrated
control, and the recent buyers appear to be able
to margin it to any extent which lenders desire.
In this state Of things, and with the large short
interest out, lively turn in Erie may occur at
any moment. 1t is fallacious to say Erie cannot
be cornered, on the ground that the stock is SO
large. All that is held by investors is as good as
dead for purposes of speculation; and in these
times per cent stocks are not lightly thrown
away. The earnings of the road continue
extremely satisfactory, especially for this time
of year, and thero is every prospect of q
very large surplus being held over at the next
dividend day, Whatever amount may then be d
vided. The policy pursued SO far has strengthen
ed the road while not neglecting stockholders, AM
the full appreciation Of the condition Of the roa'
has not even yet made itself felt. The genera
market was lower again after the second board
and looked dull at the four P. NJ. call. Michigan
Southern is supposed to be let down by the hold
ers for the purpose Of getting more stock q
lower fgures but the operation is risky at present
and occasionally turns out SO as to remind one o
shadow. A rally Of the market to small exten
occurred late on the street; but most speculators
preferred to sleep upon the Charleston news be
fore acting. The following were the closing
prices OF the day.