The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-04-10
FINANCIAL AND COMMERCIAL.

THURSDAY Apru e-sPM
The gold market has been very firm today and the
aucsuations from 1857 TO 1884, with the clos.
ing transactions at the highest point touched the
latest quotation on the street being 1857 q 1884,
The rates paid for carrying ranged from two to six
Der cent The gross clearings amounted to
s4o3oSoOo the gold balances to. 81, 800 OSs and the
currency balances to $2S7l, ls9. There was good
supply Of money during the forenoon at seven per
cent In currency, but between haif.past one and
na'f-past two there was sharp demand, and one
sixteenth OF one per cent commission was
paid Tor loans in q few instances. After this
Hme the pressure subsidized and little or
NO dinculty was experienced in making up bank
accounts. The natural activity OF the money market
was quckened by the eating In OF loans IN conse-
quence Of apprehensons excited by the sudden de-
cline OF more than sixty per cent In the stock OF the
Atlantic Mail Steamship Company, which formerly
owned the steamers running between this port and
Aspinwa, in connection with the Pacific Mail com.
pany's steamers from Panama to San Francisco.
About two years ago. however, 1t made an arrange
ment with the Pacific Mail Company by
which it sold its steamers in the califor-
MIA trade to the latter, and received in
return a certain amount Of Its stock. Instead
OF holding this 1t IS rumored to have sold 1t long
age, and since the negotiations referred to II has
been merely running line Of steamers to the South
ports most OF which are understood to be char
tered only. Tie stock for years past has been held
In very few hands for speculative purposes, and
the immediate cause OF the present catastrophe
phe failure OF a broker in Nassau street who
carrying large amount OF u on his own account.
The failure is reported to have been the result OF hts
inability to pay OF loans on the stock winch
called in; and this affords practicai Illus
Gataon Of the danger to the banks OF
lending at all on any other than first
class colaterals with wide margins. The question
arises how much Atlantic Mail Is hypothccated with
the banks IN this city, how much per share have
they lent on 1t and what is their net loss with the
stock at 49, this being the closing price for tan
advance Of ten per cent upon the lowest point
touched. And yet this stock sold at ia in January
hast, and the banks considered themselves safe in
lending par upon it when mixed with other collat
erals AS recently this date last month it sold at
s9A, and 1t is only now that the full extent OF
rs rottenness has been practically shown, al
though it has been regarded with distrust for
many months past. And yet this was ten per cent
dividend paying stock, or rather a dividend paying
swindle as we may now call It. How q similar
break may occur in the speculative railway shares Is
uncertain, but 1t Is obvious that some OF them ut
least liable to it, and II the market lost the sup
port either by accident design, Of but one man
who is now sustaining 1t fall like that have just
chrOnicled would be the inevitable result and when
20 much hangs upon single life and single will
the danger OF the situation is obvious to all. But
apart from this the whole market is wholly depend
ent upon artificial support, and II the bull ciques
give way it is easy foresee the consequences. The
cry then will be, "stand from under"
Many OF the country banks are drawing
down their balances here in consequence OF
being drawn upon by their depositors with
more freedom than usual now that their quar-
tery returns are made up for it Is no secret
that the officers Of these talk plainly to their prin-
cipal customers before quarter day, and get the
latter TO adjust their accounts TO suit the con-
venence Of those institutions far possible until
After that time. Hence the demands upon the
country banks are all the greater for a week two
afterwards. But while this is the condition of
not q few. OF their number 1t IL otherwise with
the remainder, which instead OF reducing their
balances here, adding to them. and this Is par.
tcularly the case with the larger banks that the
receipts OF currency ut this centre likely
coed the outward drain for the next week or ten
days, and after that time the flow from the interior
VIII be materially quickened. In this connection we
may mention that portion Of the legal reserve Of
the country banks Ia allowed by law remain on dc.
pOsit in New York, Boston or Philadelphia,
and whatever balances they may have In
those cities are counted in their quarterly
statements aS eRai tcnuer nOteS IN mana. Inc SeCrc
tary OF the Treasury has written letter to Mr.. Van
Dyck modifying his former instructions with respect
70 the three per cent certificates, which, according
the authorizing act, payable in '1awful money"
which last he now holds to mean greenbacks, and
not either greenbacks national bank notes. or both
@ formerly. This will have the effect of strengthen
ing confidence among the banks in the availability OF
their reserve so far as these certificates
cerned; but there still remain the compound interest
notes and the specie, which are practically unavai
able although counted as O port Of the twenty five
Der cent required to he held against deposits and
circulation. The farce OF including specie in the
reserve and the evils attending the preparations OF
the banks for their quarterly returns demand the
attention of Congress. These periodical statements
fail reflect the condition Of these Institutions
a. they all trim ship" for the occasion to the dis
turbance Of monetary affairs at all the commercial
centres
It will be seen by the law reports that receiver OF
the proceeds OF the sale OF the stock OF the Rock
Island Railway Company has been appointed by
Judge Cardozo and the issue Of the forty nine thou
sand shares In question declared ultra U~es. The
argument in the OF Schell vs.. the Erie Company
was resumed in the Supreme Court, general term,
but decision reached. Judge Barrett In the
Court of Common Pleas, heard the argument on the
traverse fled by Mr.. Jay Gould and adjourned the
further hearing until Saturday morning. The Erie
bill was not reached on the calendar of the Senate
prior 10 the adjournment Of that body until Satur
day. The stock OF the Erie Company was weak and
unsettled during the day and sales made as low
Is 70h.
At the commencement OF business the stock mar.
>ket was dropping, and at the early session of the
open board fhere heavy break in Atlantic Mail
sales having been made at from 50 TO IS against sly
at the first regular board. Yesterday Pacific Mail
also declined to s9Js under pressure to sell. Erie
was weak at 7oI TX. and New York Central sold
at 1907 1901. At the first regular board the market
was weak and unsettled. and New York Central
closed y lower than at the time yesterday Erie
AZ, Reading 4. Rock Island "a. Northwestern pre-
ferrcd \, Fort Wayne 1, Toledo and Wabash u, Mil
waukee and st. Paul preferred A. Ohio and Missis