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

SUNDAY Oct u.s. 1868.
During the past week very unsettled state OF
AFFAIRS prevailed in Wall street and especially In the
railway share market owing to the severe monetary
stringency, and towards the close more particularly
I'm consequence OF further decline OF e'gns per
cent in Erie the latest quotation for which on Satur
day was aess n 3ex. THIS stock Is so largely held
and 80 widely distributed In Wall street, and an ad
vance i'm its prIce was so confidently expected by
MANY that its decline took the street by surprise
and necessarily inflicted heavy losses upon large
number OF speculative holders many OF whom were
carrying It before II broke down from 10 some
months ago The effect or further heavy decline
in the stock cannot therefore fail to be dis
astrous TO not few Of them and 1t Is needless
70 say that the more holders are forced to sell out
the lower the price win CO. and the lower goes the
more margins win be disturbed and the more stock
viii have TO be sold out. Considering that there is
Mt present about forty millions Of the common stock
outstanding and that the banks and money lenders
generally reject it collateral, unless 10 small
amount when mixed with other stocks the difnculty
OF arresJing its downward movement In the present
financial condition Of the company is apparent. This
last is supposed TO be so bad that the company's
acceptancs for two millions due the LIST OF Jan-
airy next can hardly find q market in Wall street,
owing 10 the apprehension that they VIII NOT
be paid at maturity. The funded debt ana
capital stock OF the company amount IN all
70 about eighty-lve millions; and this aggregate ID
being further increased by fresh contracts recently
made which may ultimately be productive OF good
to il, but which now threaten to almost swamp 1t
under load OF debt Thus arrangements have been
made for LAYING a third rail the entire road, so
as to enable IL to connect with the narrow gauge
lines running west OF It, and the work has already
been begun ct some points English capitalists
bought Erie largely some months ago, mainly
with a view to controlling the last election; but in
this they saw they had no chance OF success some
time before it took place. and therefore they aban
doned the contest. Since the break in the stock
Friday night orders have been received to SELL
and the pressure from this source had probably
much to do with the further decline OF five per cent
yesterday. The excitement concerning the stock is
vcry great among all interested in the railway share
market 1t Is not unreasonably expected that the
losses sustained by Erie win force large amounts Of
other stocks for sale, and in this way produce
heavy fall to which the market s peculiarly sensi-
tive just now owing to the extremely high prices at
which many stocks the list selling, these be-
ing obviously far above the range OF real values.
For some time past there has been mania to buy
railway stocks ng the brokers and other specu-
lators, and the bull clques have profted by the
temper Of the street to advance quotations to the
ton invites q violent reaction, and the wonder
u that it should have been long delayed Certain
IL is that the whole railway share market is on the
brink OF the precipice which Erie has already
fallen. The leading spirit OF the bear movement In
this stock is the wei known speculative ex-drector,
whose object is to embarrass the finances OF the Erie
Company as much possible in order to accom-
plish his designs and those who are understood to
be in his confidence were yesterday Offering to make
bets that the stock would sell at IS tomorrow and at
considerably lower figures before the end OF the
month. At the close last evening the rnest stocks
on the list were Fort Wayne, Northwestern Pacific
Mall and Mariposa preferred but in Erie there
little less than q panic while New York Central
showed signs OF sympathetic weakness and the fol-
lowing the latest quotations on the street.
Pacific Mail, l2s q l2e,z; Western Union, s6H $685.
New York Central, 126K 1895; Erie, 39s q 39a4;
Hudson River, 1855; Reading, 81 q 97i&; Michigan
Southern, 1854 SO; Pittseurg SIX s7sl; Rock
Island, 1857 1855; Northwestern, 50 s94 North
western preferred, 90 a 9Ol&; Fort Wayne, 1l3A
1ls,l; Ohio and Mississippi 81 sltl Marposa pre-
ferred, 22x o 22z..
The stringency IN the money market was very
great during the week, and seven per cent in gold
freely bid for loans by the majority OF borrowers
on stock coaterals, and In many instances an
eighth of one per cent commission was paid in ad
was largely due to artificial causes, but without
natural influences operating in the direction
the former would have exerted little effect OF dis.
turbing character. The loanabe resources OF the l
banks had previously been greatly reduced by the
drain or currency TO the West and for the last ten
days the Sub-Treasury has been absorbing nearly
500 900 in greenbacEa per diem in exchange for
coin 1t has sold. The money market was there
fore unusually sensitive TO the withdrawal Of
combination, composed OF INSCRIPTIONS spectators,
was not wanting TO take advantage OF the oppor-
tunity, and report says the latter are aided by
number OF equally INSCRIPTIONS bank officers. The
indications that the worst Of this strlngency has
not yet been felt, two millions and a half more
greenbacks having, 1t is understood, been withdrawn
from the banks yesterday. Bank officers are indis-
posed to encroach upon their reserves as they fear 1t
would create disrust OF their own safety and so lead
to a run upon their deposits, y contingency which
at the present critical juncture would be fraught
with great danger TO the interests not only OF
Wall street, but the country at large. They also give
as reason for not deviating from the established
rule that the Western money markets very strln-
gent and that the demands Of the pork crop will
soon create fresh demand for money, and that the
drain OF currency Southwark TO move the cotton
crop IL only lust beginning TO DE felt. To tamper
with the money market at such time IL 10 conspire
against the public welfare and those who do il are
deserving Of severe punishment. The statement OF
the associated banks OF this city for the week ending
on Saturday shows less important changes than
were generally anticipated, owing TO ts having been
made on declining average. There IL o decrease
of sl5423 IN the legal tenders So s27 73e in the
posts. Sloe5 0o2 in the loans and S99s0 In the cir
cuation while in the specie there is an increase OF
saee,eos The totals Of the last two statements
subIoined:-
october IL. DHOJPy "a.
Loans. s26i ga, I35 $685. 5T9133
specie. ............... V,tSd,62n p,653, $50
Clfculatlon.... .......... sA,Zl3.siS "a, 1850
deposits ................ 1sS,ss0,6ss is8,0j5,s4T
Legal tenuers............ 5s,62o,S5T 55,Tll,iI
The bear element In the gold market continues to
he the onp. thu LAMENTATIONS xvi,hgy