The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-01-15
FINANCIAL AND CONNER GAL.

SUNDAY, JAN H. 100
Affairs in Wall street very much unsettled last
week Notwithstanding the extreme abundance Of Money
which caused reduction Of the rate for call loans %
sper cent. Gold which opened at l4l on Monday
sold down to 1917 Tuesday, under the effect o. the
European news reporting advance in the price OF i've
twente and apprehensons respecting the bill presented
by Mr. Morrill, in the House Of Representatives autAorz
sng the Secretary of the Treasury to sell bonds here
abroad to an unlimited amount The operators for tall
hammered market vigorously and not few Of their
number also 'short Of stocks, they had double
purpose by depressing the stock market as we'll
Gold however, reacted toIlSoI on Wednesday and after
reapslng 70 l3S on Friday, closed at l39k q satur
day. under the influence Of the advance Of the Bank
England rate OF discount per cent and decline
Of about one per cent the London Stock Exchange in
hvetwentes and other American securities. The stock
market was in state Of semipanc at intervals and the
bears had 1t TO great extent under their control
But on Saturday the declining tendency Of prices was
checked, and the railway lists became buoyant
under the demand from the shorts TO ''cover''
their outstanding contracts Not few Of these turned
amt went long' on the market, but the great majority
oil the bears have not yet covered and nearly all the
leading stocks still largely oversold The plethora
OF capital seeking Investment this centre Is increasing
and on Saturday large amounts offered Eve per
cent. On Tomorrow and Tuesday about eight millions
and half of interest seven-thirty notes falls due
and the balance in the bTrcasury has increased TO
: ST., 735,474. kFlt eAs'
the close of business on Saturday the Stock market
firm, Michigan Southern and Cleveland and Pitts
burg being the strongest of the railway shares The fol-
lowing the quotations at balfpast five O'clock
Erie 81 a. New York Central o. Michigan Southern COX
n Y, Cleveland and Pittsburg Tux IS, Reading lO2A
1o3, Northwestern 80 32h, preferred 5SK a The
deliveries of Pittsburg aud Michigan Southern very
irregular, and per vas paid for the loan of the
latter till Monday.
Lenders regard the coure of the stock market during
DE past week. in nc monetary facilities presented
toaoders of stocks anomalous and is clear
that'n the absence of the disposition to speculate for
rise, and in the face Of a strong shear" movement,
nm easy money market is Of little avail in checking the
downward Of prices. Probably three-fourths of
the msmbs of aboard Of Brokers the bulr'
side OF the market when the year opened but, being
rather heaviy loaded with Stocks these unable TO
resist the attacks OF the other fourth of their number
Some sold out ut loss when they saw their expeca-
tions disappointed, while others postponed making
the sacrifice, Ind thon sold out at q heavier
loss Many, lpwevcr still retain their stocks,
knowing that by selling out they would have
only aggravated the decline The arguments of the
most radical or the bears startling, predicting
as they do general commercial panic and collapse Of
values throughout TIC country. They say it would DO
For the good OF the nation that the mer-
camille community should DO bankrupcd and. prices
brought down to tho snte-war standard. They caro-
nothing for the prostrang effects of great esmpsrca
reSusion and the entertainments in which 4 sweuld
inevitably involve tho Treasury the greater the pesss
tration the greater the gain being to them. AZ
These men, however, reflect to some exent tho ertn.
ions of considerable section OF the commuuU whe%
labor under the mistaken idea that fall of prices Ft
bring about q resumption Of specie payments,
and that a contraction of the currency is the
surest way Of producing that decline Ths ssmsz
men a confidently predicted when Lee surrendered
that wc should retun TO specie payments within year.
Perhaps they do st and will continue 70 their
prophecies annually for the ten years. I'LL the
rcd result is actually achieved The bears the Stock
Exchange arc making capital cut Of tho fsars Of
contraction which psrvads the public mind; and the
brokers have the stock market almost entirely to thcm
Selves the struggle interest TO them than the
general public. larUe Amount or customers margins
and brokers' capital on the "bull" side has been
swept away and this only be replaced by
time; but that time cannos 30 long deferred II prices
again decline, for investors will step in to avail
themselves OF tho profitable market created by tho fall
Tho soandes Of al the arguments OF the bears that
based upon the reduced earnings Of the leading railways
ri.s find that the earnings Us IN. Achigan
road fo q 3he pceaent moath were oe70o
lsss than In tho corresponding week last year. those
tho Michigan Central $l.0l0; those Of the Rock
Island $40, s42, and thoss OF Tho Chicago and Alton
ST. $50 The earnings for tho month Of Decem-
Der were also considerably below those OF the
same period 1864 but they also considerably
the earnings in 1888 and SUFFICIENT to insure
tbs accumulation OF q considerable annual surplus for
dividends or improvements. This decline Is owing
partly 10 a diversion OF traffic 10 the Mississippi river,
and partly to the loss Of government freight aud traffic
incidental the The reduced earnings although
axi.x
10 promote the speculative ends OF those who will ignore
the earnings altogether whom they think 1t time
tbs "bu' tack Meanwhile, by dcprcciating market
values they have transferred large aggregate OF money
from the pockets Of the bulls to their Such Is Wall
street
Foreign exchange closed dull ut 1887 100 for bank
ers' hills on England at sixty days.
The Finance dill previously referred TO has created
discussion Wall street. but less than Its import
calls for Not TINT think the Secretary OF the
Treasury would abuse the power which the bill proposes
u confer upon him, but because Is wrong in principle
for legislative body To invest any ono person with
the power that properly belongs only TO ITSELF The
bill. # PASSED in It's original form. would be a
virtual acknowledgment the part OF Con-
grcss that 1t Is incompetent to egsate upon
the finances, and that the incumbent Of the
Treasury whoever he may happen to be- Is far better
fitted for their management without let or hindrancc
Under the authority Of that bill would be in the power
OF bankrupt the whole country including the
Treasury itself But Understand that the House
Committee Of Ways and Means have already insisted on
certain notifications Of the same, with which l. TO he
presumed Mr. McCuloch will assent The kind
OF terrorism which the possession Of such I'M
limited power would exercise the people
may inferred from the disturbance created in
tary Affairs when tho bill introduced In Congress.
The powers Of Secretary Of the Treasury ought to be
strictly defined in every act passed by Congress, other
wise IT, mercantile aud financial community exposed
70 uoE er needless alarms, and liable to become
lc's the prcy OF NIL those operators for fall Of
prces Who seek advance their interests by circulating