The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-04-18
FINANCIAL AND COMMERCIAL.

FRIDAY, April 17-6 r. M.
mo stock market after opening in panic this
aWuiDc. reacted sharply under heaVy purchases by
enc noor N cover their short contracts, and the de-
n.pd nom this source was stimulated py false re-
-. relative 10 the Erie bill at Albany The conse-
anca was that before the close the greater part OF
en-. .sbortp interest had been covered, and this ele
s,eat OF support having been Withdrawn, the ten
,ncy OF prices is again downward On all such pam
tky and demorazed markets as the present. sharp re-
actions caused by the bears becoming frightened are
eytable but this only tends to precipitate further
aecine as soon as the 'shortn interest is covered
yne recent decline caused by distrust Of the
value OF the speculative shares. which had become
greatly inflated in price under the swindling
operations OF ciques and prices are still very
much above real values it follows that this distrust
sthl exists No six per cent stock, for instance is
worth ll2 by twenty per cent, and with most OF
ebe other speculative railway shares; but the bull
clqnes, OF course, try to make believe that black
white when they talk of values. Moreover
confidence in railway property has been shaken
py the litigation in Erie and Rock Island, and no
one knows what the upshot of the struggle between
the rival parties will be. That it has been already
productive OF great mischief to the railways con-
ccrned is undeniabe, ana to 1t may attribute the
recent accident at Port Jervis for it caused by
broken rail, which would in all probability have
been replaced by sound one before this but for the
proceeds Of the stock sold for the purpose of repair
ing and completing the road having been enjoined by
the courts for two months ago the superintendent Of
the company made report in which he stated that
the iron rails had broken, laminated and worn
out until there was hardly mile OF road
where 1t safe to train at the ordinary pas
senger speed. The railway system of the country
has long been rotten but the full extent of its rotten
ness not yet known to the public and the collapse
OF the speculative bubbles blown on the Stock Ex-
change Is only question OF time. When we said
yesterday morning that prices were from ten to
forty per cent above the range OF real values for
OF the speculative railway shares understated the
case the sequel will show but it would be absurd
t0suppose that prices and values can be made to
approximate suddenly We do say, however that
they are dangerous stocks to hold, and therefore
aAsafe for the banks to loan money upon, except
Hpdn wider margins than they have hitherto been
accustomed to exact The shock which the stock
market has experienced this week is but one of the
premonitory symptoms of the crash which ultimately
awaits IT, and which the bull cques are endeavorng
10 postpone 10y talking largely of probable currency
tnAation under the administration Of the next Presi
dent. But this should not lessen the wholesome dis
trust Of speculative stocks which now prevails
among the banks and the general public. The
sooner the cigues utterly demoralized and bro
ken up the better for legitimate business and
the public both in and out of Wall street, for their
SEPARATIONS have been invariably conducted with the
Design Of milking the streetn and entrappng out
siders.
The gold market has been very Arm to-day, its I'M
aerone having been strengthened by the advance in
she rates Of foreign exchange. The fluctuations were
fem 1855 to 1897, the closing quotation being 1881
1885. The supply Of coin was in excess OF the
Borrowing demand and loans were made at a II
Der cent per annum and 1882 3di per cent per diem
Tor carrying. The gross clearngs amounted to
t462loooo the gold balances to sl, ,s5s and the
currency balances to s2,o54,5s3.
The money market was very active during the |
greater part OF the day, and the banks almost in !
variaby declined to extend their loans specula-
1--WE collaterals although they loaned upon govern
nent securities at the legal rate TO limited extent
Their lOanabe resources are however hardly greater
than they were month ago, aud the return now of
currency from the interior is very slow. 1t viii not
he until the prices OF the speculative stocks have
worked to much lower point that confidence in
them as colaterals will be restored except very
wide margins. There thirty-hve millions more
Of securities in Wall street than there were
not very long since and meanwhile the currency to
nOat them and carry them with has been largely
auced The experience Of Atlantic Mail should not
be lost, and temporary rallies in the stock market
should not be mistaken for permanent Improvement.
After every fall there will be rally, and after every
ysny fall.
Government securities were strong during the
early part Of the day. and prices advanced fraction,
ske demand for Investment being stimulated by the
dtstrust OF values In the market for railway and
other speculative stocks. During the afternoon
quotations remained steady, and at the close they
were as acknowledgement, 1851, 112 1l2ta;
coupon, 1851, H. 1924; $685. registered, 1862 lo4
alo4%; 6-2o's coupon 1882, llo7S Ill; do, 1854,
1870 a lO9s; d. 1866, 1907 1905; do, new, 1866,
January and July, 10. z 1O7,4; do, 1867, 1919
1os; lo4O's registered, lola< lo2; lo4os, coupon
l0l% o 1o2; June 1905 1907 1864; July 1905,
l9j,s 1856 May compounds, 1854 1lsh; August
d., NIX; September do, III; October do, 1l6H.
The subTreasury bid loe for thirty notes, but
there were no sellers at this price, and hence 1t
bought none to-day while it not seller OF gold
that its operations had no effect upon the money
market In reference to the increase OF the baance"
IN the Sub-Treasury yesterday we may mention that
not owing mainly to the withdrawal OF cur
rency nom the banks by gold sales, as many have
supposed, hut 10 receipts Us here described
Coll exchange on New Orleans. ............. 10000
Transfers tchecks on banks). 10000
Ged certheates gold deposits). .......... 316,600
sseo % % o2o0oo
We give the above as an instance OF the various
canses operating TO change the amount OF the balance
aAthe 6ub-Treasury.
~ the commencement Of business the stock mar.
- was weak, and for short time panic prevailed,
Ssring which Erie declined to 04j5 a ca. and New
yerk Central TO 1879. At the early session OF the
1pen board, however there was a slight recovery