The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-10-19
FINANCIAL AND CONNER cIAL.

SUNDAY, Oct. IL, 1855.
Business in vTAn street was very active during the
past week, and with the announcement OF tne result
of the State elections Tuesday fresh impetus
was impaired to the demand for government securt-
ties as well as to speculation for rise on the
stock Exchange. The tendency Of gold, however,
continued downward, and the extreme fluctuations
were from 1897 TO 1897, the closing quotation being
1851 1877. Owing to the large speculative and mer-
camille s.short interest outstanding there was an
active borrowing demand for coin, and on Saturday
the rate paid for use until Monday was az high at
one time as per cent but this extreme scarcity
was produced by locking up gold certificates, o
strategic operation on the part OF the bulls. The
orders from investors for the purchase
OF government securities, together with q
brisk speculative inquiry, caused rapid
advance Of from one and half to
two and quarter per cent in fve-twenties the
bonds Of as67 having been the most active and
buoyant. Much excitement attended the dealings at
the boards, and purchases were made without re-
gard to price. The demand was well distributed,
and registered bonds were SO scarce and In such
brisk request that coupon bonds had to be sent 10
Washington to be transferred to the registered lis
sure sign OF an increased investment demand. AS
In all upward movements, however, reactions must
be expected to occur at intervals owing 70 safes Oh
speculative lots to realize. But 1t Is gratlylng 10
the public mind with respect to our national
eeeurtes and to observe that fve.twenties In the
foreign markets have synpathizcd closely with the
rise in auctions this sde 1t is clear that the re-
suit of the late elections has had the effect Oh
greatly strengthening the public credit by ing
the political prospect before the country. Specua-
ton ran rather wild In railway shares during
the latter part OF the week. and some of the Western
shares, and most notably Milwaukee and st. Paul
FORT II
York stocks were comparatively neglected and
barely steady, Erie declining to 4s3s Saturday
after previously rising to 5o7s, Notwithstanding that
nearly half the capital stock Is held in England or
English account and that further heavy transfers
preparatory to shipment have been made since the
re-opening Of the company's transfer books The
State stocks, and particularly Tennessee sixes new,
were active and strong owing to the improved politi-
cal prospects before the country and Of the mscel
laneous securities Pacific Mail was firm but quiet,
while Mariposa preferred advanced to PAX and the
ten per cent certificates wnro actively dealt in at i'm
proving prices. At quarter past five last evening
the market closed strong, following slight but gen.
eral reaction, at the following quotations-P
Mail, 12S 12Sk; New York Central, 1881 1855;
Erie 4sH 4Sk; Reading, 10 e0>s; Michigan
Southern, s975 90; Plttsburg, 00I o.; Rock
Island, 1883 100; Northwestern, OK a e75l do.
preferred, 97X 9s; Fort Wayne, 117,i 117x; Ohio
III 11a; do. preferred, 1929 ITO; Mariposa pre-
.ferred, 24,S 241S.
The rapid and enormous advance In some OF the
Western Railway shares during the past few months
and especially in Milwaukee and st. Paul and Chi
cago and Northwestern, has taken Wall street by
surprise. This Improvement is partly due to the in
creased earnings but particularly to the specu.
d,ve enterprise OF capitalists interested in railway
management, who have boldly bought them up in
I.nrt1f t.
prosperity Of these railways is likely to grow with
the growth OF the country. But the important fact
remains that without the efforts OF two men well
known on the Stock Exchange the stocks mentioned
at least would probably not be selling within from
forty to sixty per cent OF their present price, and II
either OF them attempted to realize largely upon
those stocks q heavy fan would be the immediate
result Nevertheless 1t speaks well for the future
value OF the property that they and others equally
shrsgd are willing to invest their fortunes In
1t even at low prices, and are content to
patiently abide events. The gross earnings Of four
teen OF the principal railway companies whose
stocks dealt in here during the first nine months
OF the present year were s40.s7s,os4, against
S4559s sec Tor the corresponding period last year,
nearly ten per cent larger. The earnings of the
lines In September were $7,s29, 7o7, against
s7l8oc3t in the same month In 1867, the increase
beng nearly equal to the average OF the year. The
increase in the earnings OF the Chicago and North
western during the nine months 81, 72e, 2s5 or
tEcnty-seyen per cent this being largely due, how
ever TO the transportation Of materials used In the
construction OF the Onion Pacific Railway. The
milwaukee, and st. Paul shows an increase In the
same period OF .o25so5, or twenty-seven per cent,
bGt this is to great extent owing to the extension
OF is line from 1856 to $50 miles, and about three
tas OF the increase the fourteen roads referred
10 e shown by these two lines The rest OF the in
grease Is distributed among nine OF The other lines
the remaining three namelythe Atlantic and Great
Western, the Ohio and Mississippi and the St. Louis,
Alton aud Terre Haute-showing decrease The
growth Of population along the extreme western
lines l. gradually increasing their local traffic, and
tas feature viii become still more marked In the
future Nevertheless 1t must be borne In mind that
Chicago and Northwestern, Milwaukee aud st. Paul
and Michigan Southern are not regular dividend pay
aaQ stocks end that however great their prospective
80, ,,,. $40 are now selling at prices consid-
-, 10y y va -~assnt az .easured
IL tie existing and probable future dividend paying
capacity OF the lines they represent. The policy OF
the western, alike with other railway companies Is
10 charge rates OF freight high as they can without
diyerting traGlc INTO other channels, and although
tAs has lis advantages it cannot be over
locked that ia a thinly and newly set
tied country IL checks the tide OF immigra-
ton. Mr. McIIenry, in recent letter to the Hon.
henry CHitebbins relative to the affairs OF the At
imtc and Great Western Railway, advocates fixed
rae OF one cent per mile per ton, so that mer-
chants may make extended contracts In confidence
Mat their plans will not be frustrated by sudden
Jump in rates There is good practical common
sesse in this advice, and railway companies. espe-
ciay in the West, will End that they can vastly in
cree their business by reducing their rates Of faro
and height and keeping them fixed, and that their
divided paying ability win improve with the growth
OF theiMranlc.
The mNney market was well supplied with funds
q; six ana seven per cent, and in exceptional in
stances ances were left with the principal dealers
In United aates stocks at i've. The banks and trust
companies. however, almost invariably asked and
Obtained sewn. There was only very moderate