The New York herald., 1867-09-23
FINANCIAL AND CONNER CiAL.


SUNDAY Sept n 1867.
TIE stock market greatly excited last week. and
rrom Wednesday morning TO Saturday may
ks said been state OF panic Railway shares
were pressed for sale IN largo amounts regardless Of
price Erie declined o. after selling tx days
ego end in point Of weakness Cleveland and
pMsbur Michigan Southern and the Northwestern and
Milwaukee st. Paul shares which feh on about seven
Per cont In each Instances New York Central was re-
mNkacy firm throughout, lite decline having been Inn
Md per cent and Rock Island was next stub
bornnes. The money market meanwhile became
active at cent ater being easy s four and
nve per CONT ana approximations that II vouId become
stringent produced alarm. which did much moro to ac
saiate tho decline Than any change which had actually
aaken place m the condition OF monetary AFFAIRS Inc
demand for currency az the West suddenly onickened
nad eho Sub Treasury began sell gold IN hrger
than usual aud so increased It's balance with
rapidy wb,ch added 10 the prevahfng CONSTELLATION
sou,e Of the banks and rot few private lenders called
IN their loans and this Disturbance forced many sell
sus their securities The natural tendency towards
moderately active per cent money market
Was aggravated by machinery which those inter-
stod In favor decline the Stock Exchange could
set IN motion Matters won't daily from bad TO worse,
an after The board yesterday, whom increased
supply money checked the downward OF prices;
but change the regarded only tempo
rary, owing TO special ererons having been made BY
banks lenders generally 70 employ Ill the money
shey had over Saturday.
The money market will undoubtedly work closer for
somo D.tle time come, in consequence Of the
sctsze drain mentioned which has just set
In and the preparations Of the national banks for their
suartery returns which will be made up the first
Monday in October. We experiencing monetary
activity nom legitimate earlier period than
usual. which IS extent due to the heavy and
rnnscreet contraction Of the currency, including COM
pound interest notes. within the past year. At Boston
thcre has been positive strngcncy felt during the week.
and the Of the banks there was the date Of
their last weekly return, Sl,3o7,6I2 below the legal
nmn Of -nve per deposits and circulation
although they in easy position and lend
Inc at low rates last month Tho drain Of currency from
East TO West and also before long the South
the cotton crop, viii still further deploe the banks
she Atlantic cites At this season the year this
= usua aud therefore expected The drain from tho
financial centres TO interior bolster unsound
tona banks that they conform TO the prov sons
of the law when they have 20 make their quarterly
turns, is a special source Of disturbance, however,
and which, AT Hne like ths pres
en- for instance, may work considerable
mischief by contributing to produce q money
panic the effects Of which confined the Stock
Exohapqe, but by shsking confidence generally strike
eminent itself: for whatover mpairs the general pros
psrty operates TO diminish the public income and 20
impsril the interests Of stockholders is
fortunate that ct the present time few interested
IN the course OF the general share market except the
brokers and other professional spsculaors and there
FORE IL the predctions bears realized and
prices experience a further decline Of nys par cent
next week, the havoc will bs connaed Wall
street, for investors will suffer unless they soil
~ The decline, which of course they world not do
knowing ihs. history Is always repeating i,ssM In the
stock market, and thai year has high tide
and is low tide, The decrease Of millions In
legal tcnder notes aud equal amount in deposits
among the associated banks during the week Is the
unfavorabie symptom that itself for consdora
ton at this juncture, the surplus Of the
banks ia reduced to rather low point
But after tho nrst week in October an
easier state Of Affairs may be relied upon.
In the meantime 1t Is hard say how may 90
On the Stock Exchange, but a. yet confidence is 6y
Eesns rs-estabished, and the indications still ad
to the bulls Tho market closed duh last evening
a. the suboiued quoatiens:-Nsw York Central 1865,
alo6A; Erie, 6esf 62tl; Hudson River, 12s 1881
Reading, 1915 a I02; Michigan Southern - Tx;
Cleveland and Pittsburg, 81 81; Rock Island, 1913
1oIk; Fort wsyne, 101 a 1Oix; Northwestern, 40
loh do preferred, o5 651S; Pacific Mail Iioi4
I<I; Ohio and Mississippi certificates, 251s 1855;
western Union Telegraph, 4l1 4liA milwaukee, and
BI Paul preferred, d1A a62k
The gold market showed diminished buoyancy during
sbe week, and especially towards the close. owing
supposed heavy salos by the Treasury and strong
s6orr on the part o: the spectators
ssbesr'' the premium in order buy back
q decline tho they had sold at the ad-
vance The range OF the week from las },
20 l42X and the closing Tsnsactions 1.sh. The
customs rooepsat ,hs amounted to ss 5O3 and
tn bank statement for the week Is likely to show
crease OF about saoo 600 in specie. fom which be
inferred that the Treasury gold sales less heavy than
vas generally supposed-'rom the increase OF twelve
millions in balance In The sub Treasury between the
h aud 18th inst, the amount Of the latter having
been Sil2 095, ,3c3 the date frst mentioned, aud
sI23 e95, go the subsequent On Friday and
esiuriay, however, the balance was reduced, and IL
stood last evening a. fils605s22, or So 2js lsss
than on Monday evening. How far public opinion
spcng the previous hoardrg OF currency In ia vaults
during the money panic or the stock Exchange in
aaencsd result say but ws commend the
policy watch dictated the time THAI dspre-
saie tho In which the Treasury gold sales
made There three objse.ions to these, the nrs'
bslne that better for the governmen, 70 hoard its
sod than e se ~ the second that such sAies II made
ought made publicly, and NO, secretly they
now; sEi the third that there erght to bs LIMIT to
she amount Of such sales within siven time As IL 8
She Secretary has unlimited authority to soil the
Treasury gold, and to DISTURB the money
market and promote speculative 11c'Gsisns ia the pre-
mum his discretion, and contsrd tha,
sbeah be invested with any such power which liable
any time 70 be ussd to tho public rjuy aud possibly
20 advance speculative interests. The more gold the
Treasury succeeds n aceumsstng, tbs better FOR
public credit, both Al home aad abroad; aud with
i've hundred millions Of nstona securities held
xarops this 10 uninportsai consideration, fer the
Of any considerable poron Of ths large
FER ale hsrs wouls be . serious matter depnving
= u would OF corresponding amouut Of gold
pfov,dsd We could obtain u, and forcing up the
prsnium eaermsuslg. Tie fact OF much Of eur