The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-10-26

Affairs in Wall street present an unusually
disturbed and threatening aspect just now,
owing mainly to the prevailing monetary
stringency and the panic in Erie, which carried
that stock down from forty-eight on Friday
to thirty-nine ave-eighths on Satur-
day, and which may carry it down 50
far that panic in other stocks will be the re-
suit, prices on the Stock Exchange being, with
a few exceptions, far above the range of real
values, government securities excepted, which
are relatively cheap. The heavy break in
Erie is attributed to the bad financial condition
Of the company, which has necessitated the
issue of convertible bonds, which in turn have
been converted into new stock that Is now
being thrown on the market. At the same
time il is rumored that the English
holders are selling out in disgust with
their investment. As there is about
forty millions of the stock outstanding, the
magnitude of the sensation created by its
rapid decline to lower point than it has been
quoted at for years may be imagined. During
the whole of Saturday Wall street was in o
ferment on the subject, and the widest excite
ment prevailed in the midst Of the dealings in
the stock, the chief anxiety of holders being
apparently to sell. Bets were offered while it
was quoted at forty that it would sell at thirty
opinion with regard to its future course. It
never rains but it pours on the Stock Ex-
change, aud the spectators all run one way
like a flock of sheep, so that it is just now
difficult to find man in Wall street who does
not say that Erie is going out of sight. The
most remarkable feature of affairs, however, is
that the rest of the market has thus far SYM
pathizcd 80 little with the downfall
of Erie; but how much longer it will
remain in this position it would be unsafe to
say, break being already imminent. Some
of the most reputable members of the Stock
Exchange are in favor Of expunging Erie from
the list Of stocks dealt in owing to Its treacher-
GUS character; but as this action on the part of
the board would leave the holders of the stock
practically without market for II the distress
thereby occasioned among stock houses would
be extreme, and for this reason the suggestion
is hardly likely to be acted upon.
The present stringency is as severe as any
ever felt in Wall street. IL is partly due to
artificial causes, stock. jobbing clique,
aided probably by some corrupt bank
officials, having withdrawn several millions
of greenbacks from the banks; but 1t must
not be lost sight of that If legitimate inau-
cnces did not favor them these conspirators
would be unable to create any disturbance.
The banks have had their loanable resources
greatly reduced by the drain Of currency west
ward, and the Sub-Treasury has been absorb
ing about four hundred thousand dollars per
diem in grecnbacks during the last ten days in
exchange for the gold IL has sold. We regret
to say that the immediate prospect before us is
not calculated TO alay distrist. Two millions
and half more greenbscks were, II Is said,
withdrawn from the banks on Saturday,
and the necessities Of the Treasury will COM
pei IL to continue its sales Of gold. The banks
are unwilling to encroach upon their reserve,
because they fear II may excite apprchensions