The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-06
E FINANCIAL AND CONNER GAL.

securities for cash having been to an extent
rarely II ever before witnessed. In United States
stocks the decline at the first call was equal to from
three to four per cent since yesterday morning. and
those who were obliged to sell necessarily did
10 at sacrifice. The transactions were
enormous and bonds were thrown overheard
without regard to price. At the same time wide dif.
ferences were made between cash and regular the
rates ranging from u to per cent and for buyers
options OF nfteen days per cent were paid. The
leading dealers very truly say that the panic has
been brought on by the great scarcity OF money and
that so long as this scarcity continues there il no
hope OF Q better Market operators having for the
time being no confidence in it, and considerably
lower prices are freely predicted. The upward
yeacuons seem only to bring out fresh
sellers, and the prominent houses give no
encouragement to buyers on margins. But in the
midst OF all this excitement 1t must be remembered
tnat the cause IL monetary str1ngency and that
whenever this reaxes there will be quick re-
covery- Prices improved about one per cent from
the lowest figures Of the morning but before the
close there was re apse OF about half per cent,
and tho pressure still to SELL while the principal
dealers made no effort whatever to stem the down
ward tide apparently deeming 1t futile.
In the railway share market there was great
Generalization, and prices declined rapidly under
an enormous pressure to sell. New York Central,
Hudson River, Toledo, Northwestern, common and
preferred, and the Milwaukee and st. Paul shares
being particularly weak. Erie alone remained CON-
parativey steady but 1t is liable to heavy break at
any time, and money lenders refuse to loan on it,
wniie brokers decline carry 1t unless on very wide
margins. The market was in panic during the
forenoon, yet 1t subsequently rallied but late In the
afternoon 1t declined rapidly and closed in panic,
the Chicago and Northwestern shares having de-
clined seven per cent within an hour two, sales
OF the common stock having been made at rs. New
York Central showed great weakness and sold at
1i9H, while Pacific Mail touched ia The same
cause which has been instrumental in producing the
decline In governments is at work in the market
other stocks-namely the scarcity OF money-and
there Is no knowing how far it may force
holders OF speculative stocks to sell out, re-
.gardless Of prices. That the railway share market
IS more Vulnerable to the influences now at work
than that for United States stocks is evident from
Che highly inflated prices at which railway shares
are still selling, and to the danger attending this In
nation we have often called attention during the
past few months and warned the public from buy
ing The storm which has been brewing for some
weeks past has finally burst, but how long it will
continue and how far its ravages win extend we can
not say We can only observe that the prospect
as still calculated to excite alarm, there being in
dicatons Of the slightest abatement OF the prevailing
strtngency To-day the difficulties In the way OF bor-
Cowng were fully as great as az any time this week,
ana " Q u per cent commission In addition to the
legal rate Of interest was freely offered for loans on
government securities, and railway and miscel-
lapeous stocks the difference between the cash and
the regular price was In some instances
n X per cent. The banks are remit
ting currency to the South and Southwest
and admit that they are too poor either to lend
call or to discount for their customers while they say
that the stamping Of twenty millions Of three per
cent certificates by the Treasury to be used for Clear
Ing House purposes, viii afford no relief to the
money market. II the Treasury was authorized and
prepared to issue new greenbacks in redemption Of
these certificates the case would be other
wise, but. unfortunately, Congress has made
no provision for their redemption, and If
they are presented they must be redeemed
with money drawn from the banks, unless
che balance In the bTreasury Is sufficient to meet
che drain. There are no failures reported as yet;
but every man distrusts his neighbour The Atlantic
and Pacific Telegraph Company yesterday completed
the link between Toledo and Chicago and opened to
che public three thousand miles Of opposition wire.
Messages were received at their onces, 20 Broadway
END IL Broad street, direct and without re-
writing, from Chicago Milwaukee, st. Paul. St.
Louis Dubuque, Davenport Rock Island Burling
ton Keokuk. La Crosse and fifty intermediate points
The company Is rapidly doubling Its wires In order
20 meet the pressure OF business.
Tho gold market was heavy and the fluctuations
were from 1929 to 1921, with the closing transac-
tons prior to the adjournment Of the board at three
O'Clock at 1927, following which this price was bid,
the latest quotation the street having been 1927
1925 There was more pressure to lend than 60
borrow gold, and loans were made at rates varying
from three to ten per cent per annum, and 1-S2 to
Ale per cent per diem for carrying US well as 'na"
The Sub Treasury dsbursed $500 1873 in coin in pay
pqent Of interest the public debt and the steamer
Hansa took out So 700 In SPECIE 1t Is telegraphed
from washington that the october statement OF the
public debt will show decrease OF nearly five mil
lions which, II true will be an Unexpectedly favora
BILE exhibit for the times. The figures will be pub
ushed tomorrow.
At the commencement OF business the stock mar
ket was weak and unsettled and panic-like rush to
Sell prevailed At the first regular board the pressure
20 sell was very great and the volume Of business
vas In consequence unusually large, and prices de-
clned sharply throughout the list On the call New
Hork Central closed AZ lower than at the same time
yesterday Erie az, Hudson River OF. Reading ~,
Michigan Southern az, Cleveland and Pittsburg sX,
Cleveland and Toledo ~, Rock Island 1H, North
western 5X, preferred Q, Fort Wayne ~, Milwaukee
and St. Paul 12K, preferred 7H Ohio and Mississippi
TX, Pacific Mall ~, Wabash 81, Western Union
Telegraph X, Tennessee SKIES Eek coupon) as new
issue Rx, North Carolina skies and new issue
bX, while Missouri skies were 4 higher. Govern.
ment securities showed decline, In the midst Of
bevere panic, Of az o az per cent. At the second
regular board the market had rallied and on the call
New York central closed !. higher than at the FIRST
Regular board, Erie IL, Reading 2A. Michigan
southern ~ Cleveland ana Pittsburg IN, Cleve.
land and Toledo TX, Rock Island u, North
western x, DO. preferred v, Fort Wayne, n,
Milwaukee and st. Paul u, Ohio end Missis-
S,ppi n and Pacific Mail az while Hudson
Rlver was u lower, Tennessee skies NEW issue) u,
North Carolina skies ], new issue x and Missouri
nlxes Y. Government securities were u a 1s per
cent above the lowest prices at the first board. At
the last open board and subsequently prices werc
dropping. and late In the afternoon the market fell
Tito state Of panic, the Northwestern stocks being