The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-02
FINANCIAL AND COMMERCIAL.


which towards the close impaired considerable buoyanoy
% Of the leading speculative shares Erie excepted
The efforts Of the bears depress the latter having failed
Notwithstanding supposed large saies Of cash stock
by the speculative director Of the company and the
efforts Of the bulls to force 1t upward having been equally
unsuccessful it has remained steady neglected It
rumored that the party referred to has sold all his
stock, but that others connected with him short
OF 1t, and by general agreement intend to remain 50
until general decline takes place. when is expected
Erie will prove the weakest stock the list and they
will be enabled to 'cover at good profit The stock,
therefore, unless the bears change their tactics Will not
be likely to sympathize actively with the resi- Of the
market The bulls have been man ipuating Reading.
Rock Island, New York Central and old Southern, and
there indications of the beginning Of an upward
movement In Cleveland and Phtsburg, based upon an
expected five per dividend TO be declared at the
meeting OF directors in November and also of contest
for the Of the but these reports ought
70 be received with several grains OF allowance being
habit with railroad managers and oques to shape their
rsports in accordance with their interest
The market closed with frmcr than II had pre-.
viousiy shown but speculation Is still confined the
bidders and professional SPECTATORS and II would only
require little monetary pressure to give sharp down
ward turn TO it Meanwhile however in the absence Of
>ny sudden contingency prices are not unlikely TO 60
higher
The said market was firm under an active demand for
customs daNes and the export Of nearly million The
receipts on account OF the former at the Sub Treasury
unprecedentedly largo and the probabilities in
favor OF the average import trade continuing quite
large as at present for long time TO The great
increase which 1t has lattcry undergone is shown by
comparison Of the amount OF duties paid at this port
during two months OF July and August this year and
last While the total less than ten millions in
those months in 1854 it nearly twenty three mil.
lions in 1885. This is far above the average, for
in'IseO only little than nine millions was
received during the two months The imports
entered directly for consumption in August were
than double in quantity those for the corresponding
month in 1894 and it is noticeable that there very
much smaller proportion Of the imports entered for
warehousng than formerly Tho fact is that at the
close of the the country unprecedenedy bare
Of foreign merchandise and that the mporatons since
that time have been absorbed rapidly they have
been made. The exports during the period have
been light averaging in value little than three
millions In currency week, while the imports have
tteriy ranged from FIVE TO eight millions per week in
gold value exclusive Of freight duty and charges, the
valuation being foreign Our exports this year have
been much higher than they last year. and long
prices Of domestic produce their rea
tion to the gold premium there is prospect Of any
III
superabundance and the necessities of other nations
should prove equal the sanguine expectations
Such has been the imitation of the currency aud the c
tous prosperity which it has impaired to the country
that prices have advanced far beyond the point justified
by the specie worth Of the paper dollar This has ad
vanced Ia gold value from 81 cents at which stood at
one stage Of the yet prices have In adj
vsnced and in the remainder stood almost stationary.
This is easily accounted for. Even on specie basis
we have in history, prior TO the rebel
lion seen q large imitation OF prices, which
always raceable bank expansion and correspond
ing extension OF credits The greatest panic that Great
Britain ever experienced also a specie basis
namely in 1s25-and H. alike with that Of ls47 in this
country, was provoked by the paper money inda
ton and inordinate speculation.
But will be long before we reach the era OF specie
payments The representatives OF the whole trade aud
commerce Of the country are interested in de-
ferrng that desirable consummation and all the
chants in the land cry aloud for Its postponement
Under such circumstances the reign Of paper money
extends itself indefinitely down the stream OF time.
But sooner or later 1t win come, and then in all like
hood under enforcement in the midst OF panic, which
will blot out OF existence amount OF fictitious
wealth. after the OF similar financial and com.
merciSl convuisions in other countries.
That cannot resume or even approach specie pay.
mcnts without great commercial revusons Is evidenced
by the history OF the assgnats and mandats
In France and the disastrous consequences to trade
In Grea. Britain after Waterloo while the towards
that end being made In France, in the time Of the
First Napoleon, the resumption was brought about by
the currency and in Great Britain during
the epoch by approaching its value 10 the gold
value. Yet in both instances the immediate results
similar and the recoil from the previous expansion
almost equally disastrous or the effect in England
Ne gather idea from the following extract from
historian
h As the memorable LIST Of May, 1873, drew near the
country bankers, well as the Bank Of England, nstu.
rally prepared themselves by gradual narrowing OF
thor circulation for the dreaded hour Of gold and silver
payments on demand and the withdrawal OF the small
notes We have already seen the fall in prices produced
BY this universal narrowing Of the paper circulation
Tho effects OF the distress produced all the country
ln ena ye now 20 oo
were universal affecting both the great interests Of land
and trade But among the landlords whose estates
burhencd by mortgages, jonturcs, settlements, lega
cies ac, the effects most marked and out OF the
ordinary In hundreds OF cases from the ire
mendous reduction in the price Of land which took
place tho estates barely sold for as much as would pay
,n the mortgages and hence the owners we're stripped
,f all and made besgars Amidst the doubts fears and
general want Of Confidence caused by appalling ruin
which flowed from the Sudden drawing in OF The paper
md by the bloody ontrges and bitter prosecutions which
again flowed from tie effects or that ruin, felt
necessary TO attempt draw II possible, the ties that
bound Tic mdding classes Of the nation TO the funding
and paper system still closer, and to add " such thing
coud DO accomplished TO the strength and number OF
those ties
That bitter opposition will confront the progress Of the
return 10 specie payments in this country Is certain and
the evils which other have suffered in their
turn 10 specie payments not 10 be escaped History
h ever repeating itself But whether with without
the will OF the people, specie payments win be some
day forced upon us for the present imitation will
taay eliminate in public disrust and then may come
= time in England in 1925, when goods will be only |
obtainabe for gold by barter Meanwhile however,
much OF the evil financial consequences OF the |
may be avoided by gradual funding Of portion OF
the currency This without materially affecting the |
price Of gold win tend TO lover prices, which pre-
sent towering FAR above the specie level causing
reasonable disproporos between the relative prices
foreign and domestic commodities which ia |
only partially neutralized by the high tariff |
now In force The national bank note issues
thc noff In cir