The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-08-06
FINANCIAL AND COMMERCIAL.

The railway share msrkes has been very feverish
to-day and the fluctuations Erie have been wide and
frequent. while It's general tendency was downward
The highest price touched 70 and the lowest 6ei1
and late in the afternoon assumed armer tone, in
sympathy with the OF the railway list which is
rapidly dissocating itself from this mercurial and
treacherous football OF Wall street. The general opinion
10 that Erie via 60 considerably lower, but that ths
other speculative shares will fail 70 sympahize with
aod improve. The bears in Erie are making
capital out OF the reduced earnings Of the
road and the further reduction Of Its rates
OF fare and freight which, II Is reported,
will be announced by handblis In day or two. The
late bulls in the stock have snaccountaby disappeared
and the purchases thus far since Saturday morning
70 hsvo been mainly confined 10 the covering OF
contracts
The sudden break in Eric shows the uusubs.antiai
foundation ON which stocks res. when forced above
their real value by speculation When the decline took
place there wasnothing 10 which could be attributed
except bear raid. speculative operation forced il
down more rapidly than previous speculative opera
ton had forced up because the rise not based
upon any appreciation Of the value Of the stock The
rest OF the market naturally sympaihiaed 70 some ex-
tent with this depression because holders stocks be-
came anxious to realize and the losses oy Erie weakened
margins sufficiently in many to make il necessary
for tue bulls TO sell portion Of their load order to DO
money
and brokers exactng, and the prosperous
spectator may sometimes be turned into "ame duc'
at shor; notice The dangers speculation the Stock
Exchange have been orcbIy illustrated in this instance;
but without the risks attending it Wall street would not
be what it IS We remarked not many days since that
the higher the market the il would
be exposed to violent fluctuations. and We have
not had to wait long for verihcation OF the
truth OF the remark. The market was and
Is purely speculative one, and the bull
movement was based upon the extreme monetary ease
which still prevails and the prospect Of very abundant
harvest The leading railway shares cheap at its
commencement but the rise carried them within sixty
days above the range Of real values and many Of the
leading spectators sold out to realize their profits while
others sold part OF their stocks and from that time it
became their interest promote the reaction Prices
therefore, all last week had dropping tendency and
the speculative feeling the bull side tame but
neither bulls nor bears anticipated the panic OF
Saturday. The market broke somewhat In the same
nor last October the bulls then, now having endea
vorsd to promote reaction, which the bears aggravated
into panic the entire destruction of the bull specula
zion The money market was, however, then against
Spsculs,ors Tor rise, whereas it Ia favorable to
thsm but the Stock Exchange lacks that great
OF strength. outside support. The harvest it is true
promises to realize the sanguine expectations and
largely Increased in consequence and reaction from
che recent decline to be expected but repeat
warning to the outside public continue to leave the
etock market to the brokers and other professional
gpeculators
Money continues snperabuudant, and borrowers in
good credit freely supplied BY the banks at four per
government securities and Eve railway shares
but those who borrow from the private bankers
In some instances paying five on governments and six
mixed coaterals. the amounts being generally under
hfty thousand dollars Lenders have been carefully
scrutinzing their coaterals held against loans and
where the margin had fallen below per the den
oency required to be made good, and in all but
Few Casos these calls were promptly responded TO- Tho
2resen, reversh state Of the market having in
pred certain degree Of dstrus among money lenders
they careful in their scrutiny Of collateras
margins aud the credit Of borrowers than they we're last
week. Hence most borrowers are comparatively indf.
erent to the charged for loans provided they get
ID, necessary accommodation The leading dealers in
government securities are however, still enabled to sup
ply their wants. mainly a. three per cent? but this rate
= excsp,,onai
The statement Of the associated banks Of this city
she week ending on the Sd inst. shows . further de-
srease OF S. 27e las Specie leaving only e4o in
heir vaults an amount below the usual average The
oans and discounts have increased 1856. owing
partly 70 purchases OF government securities by tho
banks in the absence Of better employment for their
,unda The net deposits have increased $544,s
end the legal tender notes $4s2, o22, while the
circulation has decreased $37,742 II thus
appears that the legal reserve OF these
Institutions has been reduced nearly 81 900 during
he week. but they stronger in legal tender notes
than they its commencement the loss Of specie
viii exert no material effect upon the money market
The totals Of the present and preceding statements