The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-01
FINANCIAL AND COMMERCIAL.
MONDAY, August s1-sP.

MONDAY August s1-6 p. N.
The leading feature OF the railway share market to-
day has been the further decline in Erie TO Ash
under steady pressure to sell. From this point,
however there was gradual recovery to asa, owing
TO purchases to cover 'short'' contracts The real
cause Of this fresh decline was not even rmored,
but it bids fair to soon assume proportions which
will make 1t one Of the sensations OF Wall street, IL
appears that the directors Of the Erie Railway Com
pany are negotiating with parties Interested IN the
Atlantic and Great Western Railway with view 10 the
purchase OF the latter by the former ana the conso
dalton Of the two roads. As the Atlantic and Great
Western line is now in the hands Of a receiver and
has been VIGOROUSLY improbable from the beginning
the project referred is not very pleasant Tor the
Erie stockholders to contemplate and although the
stock has already declined nearly twenty-five per
cent there is no telling how much further 1t may
fall In the face Of such prospect as this the terms
proposed by the representatives of the Atlantic
and Great Western Company to the Erie Com
pany are briefly as follows-Ihe ROAD Is
TO be sold to the Erie Company for the
sum OF $780, 7e4, so5 and the Buffalo Extension for
the further sum OF S1,3S2,000. The Erie Company IL
to nav for the same by assuming all the divisional
bonds OF the Atlantic and Great Western Company
the amount Of S12 900 and by issuing preferred
stock for the divisional stock OF the Atlantic and
Great western Company to the amount Of $40 9275
and stock to the amount OF $780, 0S2 100. The
Erie Company Is, moreover to pay dollar In gold
ON each pound sterling for the interest past due
the bonds of the Atlantic and Great Western
Company in order to take the latter out
Of the hands of the receiver, paying him
at the same time fees TO the amount OF
$4,000. Here then, we have a direct proposition
to increase the common stock or the Erie Company
to the enormous extent OF $50 0s2 l29 and that this
is actually threatened will be apparent on the arrival
Of Mr.. James McHenry, Sir William Russell and Mr..
Lalng NJ. p, by the Scotia in few days hence. The
fate Of the Atlantic and Great Western Railway de-
ponds upon its consolidation with the Erie ana the
friends OF the former maintain that the proposed ar
rangement will be ultimately advantageous to the
Erie while, OF course, 1t viii be OF immediate benefit
to the Atlantic and Great western. That the latter
is great enterprise carried out by foreign capital
which should be encouraged in this country cannot
be gainsayed, and 1t is not improbable that strong
inducements will be brought to bear upon the Erie
Company with view to the completion Of the pro.
posed contract. The first effect OF the consumma-
ton Of this plan upon the credit OF the Erie Company
would, as we have minated be damaging,
but that the final result OF the amalgamation OF
these roads on equitable terms would be advan-
tageous to both there is little to doubt Just
now the financial condition Of the Erie Company is
very bad hence the reports current to-day that
the company would default in Its pawn ent of the
September interest on its second and third mort
gage bonds, due tomorrow, to the amount
Of about $35o,o00. For this however, there Is
apparently no foundation. The earnings of
the company In the first six months of
1857 were s6,591 404 90, and the expenditures
including interest and rents, So 499,3 74 81, show
Ing profit Of $92 o29 70 for the half year. In
the first six months Of the present year. however,
the earnings were s6,5s7,O2s and the expenditures
a oHn n oil.
though the interest ON the preferred stock, which
was not paid on the LIST Of July is included in these
expenditures. Such an exhibit as this almost
duces the Erie to the financial condition Of the At
lantic and Great western, and there is no saying
what may happen to the property next. Meanwhile
Wall street Is demoralized with regard to 1t, and
Bales to realize at heavy sacrifice are being made
daily.
The gold market opened at 145 aud remained firm
during the early part Of the day. but 1t subsequently
declined to 144 and the closing transactions prior
to the adjournment Of the board at three O'Clock
were at 144x. Following this there was very
limited amount Of business transacted, and the
latest quotation on the street was 144ss o 144al.
There was an active borrowing demand for coin
growing out Of the large ''short interest outstand
Ing, the speculative temper Of the Gold Room being
beari3h and loans were made without interest to
either borrower or lender and at rates varying from
one to three and half per cent. The gross clear
ings amounted to $40 033 600, the gold balances to
S1417,35o, and the currency balances to 81 o36 1885,
The Sub-Treasury disbursed $4,000 in coin in pay
ment Of interest on the public debt during the day.
The imports Of specie at this port from foreign ports
last week s43, 324 making total Of $4,000 1888
since the LIST Of January The September interest
the tenfory loan, amounting to $3275o o0 falls due
tomorrow, and the bears In gold have construed
this argument in their favor, but to all ap-
pearances this disbursement has been fully dis
counted The price varied as follows at Intervals
10 A. M........... Jas p. M. ..... 144S
l:13 p. M.......... 144K $3.50 p Mo-. 1445s y
Money continues in very abundant supply and loans
are made on government securities at three per
and other satisfactory coateras at four the latter
being the general rate, although the banks are un.
able to employ large portion Of their surplus funds
even at three. Erie is, however rejected a collat-
eral by both the banks and other money lenders
unless in small and moderate amounts, when mixed
with other securities, as there is no knowing how
soon 1t may fall much lower. This monetary ease
still fails to stimulate speculation in railway
stocks tho part Of the outside public and these
securities consequently depend for support upon the
clques and the section Of the street operating for
rise. The amount Of commercial paper Offering is
light and the applications for accommodation from
the West are small, while the remittances Of cur
rency to that section continue on greatly reduced
scale.
comparison Of the statement Of the associated
banks of this city for the week ending Saturday
last with that for the corresponding week in each
of the three previous years shows the following
changes-
August 81, 1907. august 90 1868.
Loans. .S247,s7I,662 Inc. So, e03 064
Specie. ............ .,27l, sos Inc. e677,6l3
Circulation. .......... 33,7l5,12s Inc. 897,0l1
Deposits ............ 19o.se2,315 Inc. 19442,331
Legal tenders........ 61,932,511 Dec. 49, 1866
-, September 1, 1861 august 20, 1868.
Loans. $265, 39e, 607 Inc. $6,3s1 11e
Specie. ............ o,3sl, 600 lnc.. 10587,5o sos
Circulation, ........ 27,e07, S34 Inc. 6,304,305
Deposits ........... 225,1 ,2S1 Dec. 14S56,o 36
Legal tenders....... 92,622, sos Dec. 81 SOS, 432
september 2, 1895. august 20, 1868.
Loans $2l1 ,3e4370 Inc. 500 3s6, $50
. specie. 14.443s27 Inc. bO5