The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-04-15
FINANCIAL AND CONNER GAL.


-- TUESDAY April l4-6PM.
very uneasy feeling continues to prevail among
the holders OF speculative securities as well as those
who have loaned largely on them with the usual
narrow margins. At the same time efforts eie made
to conceal the apprehensions which are felt In the
hope that affairs VIII take turn for the better 80
that both may escape loss. But the holowness Of
imitation on the Stock Exchange none the less appa
rent and before long the railway share bubble must
burst as Atlantic Mail has already done. 1t has
been blown by speculation out OF paper money, and
the time has come when all concerned, including the
banks should prepare for something like a collapse.
The latter have been lending their deposits too freely
upon high priced speculative collaterals and there
Is more than ordinary danger Of their being
left the virtual owners OF many OF them in the
event OF the threatened panic sweeping over the
market The constituencies Of the public mind on the
subject Is shown, among other things by the rumors
Of bank failures and embarrassments which gain
circulation One Of these concerning an up town
national bank was current to-day but without foun
dation and appears to have grown out Of the fact
tina of the city savings banks upon which there
has been run since yesterday morning kept an
account with 1t. Had 1t not been for a desire to
make seven per cent interest on a cheap money
market by lending fancy stocks this run upon the
bank In question would not have taken place. and
had 1t not been for the same desire to make money
by other than slow and sure means the banks gen.
orally would not be heavily loaded as they are with
speculative stocks upon which they have advanced
more than their real value. 1t must be remembered,
too, that any attempt to sell considerable portion
Of the stocks now held by the various cliques and
hypothecated with the banks would result in heavy
and sudden decline. Since the paper money era
began has been the fashion to court fortune the
Stock Exchange and legitimate business has suffered
In consequence, many Of those who were previously
producers having degenerated into mere gamblers.
IT was so in England during the war in this country,
and speculation ran wild. Persons with both small
and large incomes sold out cOnsos and other safe
investments to buy railway and other speculative
shares in the hope Of large profits their new
lures, and for while all went well with them.
Prices rose higher and higher but at length
wholesome reaction set in, which carried
everything down with 1t until 1t finally eliminated
the financial panic of 1865, and from the prostraton
Of that period there has since been only very par
tial recovery. Railway property in particular is
extremely depressed, and many Of the companies
have not only suspended dividends but been COM
PEELED to borrow largely to meet their maturing
obligations In France, also, there was great de-
pression eliminating in the collapse Of the Credit
Mobiler and all but very few Of the railway stocks
declined to ruinously low figures. We are now in
the position in which England was before the de-
preston which led to the panic Of 1866 was ex-
perienced. Atlantic Mail and Pacific Mail
have already swept away fortunes, and the
break in these Is likely to be the precursor
Of similar havoc in the railway share market and it
will be wCs if the banks escape being involved in
the surrounding ruin They will do well, therefore,
to be than usually careful Of the character Of
their cOaterals and the extent Of their margins,
and resouely reject all securities of doubtful value.
Fo,t fhair
benefit, for they have systematically made it their
business to mk the street, by artificial fluctuations
and to delude outsiders into stalking their money
where they would be certain to lose 1t.
Money was in active demand from the Stock
Exchange at seven per cent but as currency is
returning slowly from the interior the loanable
resources Of the banks gradually increasing, and
the indications therefore In favor Of increased
ease to good borrowers on governments and other
prime collaterals; but lenders are very properly
likely to remain distrustful of the speculative stocks
The gold market was firm all day, and the nuctua-
tons were from 1881 to 1885, with the closing trans
actions at 1889. The supply of coin was in excess
OF the borrowing demand and loans were made at
las per cent for carrying. With respect to the
savings bank before referred TO may mention that
depositOrs have no reason to be alarmed as Its sur
plus exceeds $500, 000
Government securities were in moderately active
investment demand all day, and prices had an upward
tendency, but the speculative transactions were on
q very limited scale. The undertone OF the market !
is strong and when confidence in monetary ease is
fully restored the demand will quicken and buOyancy
will be the result The Assistant Treasurer has given
formal notice that the interest the three per cent
certificates will be paid annually from the date OF |
their issue, and when presented for the collection of
interest new certificates will be issued instead of |
stamping them as heretofore. The closing quotations
were as suboined:-R 1881, 1l17s 1925;
coupon, 1881, 112 1l2Js; 5-20's, registered 1862
104I a 104k; 52o's coupon, 1852, Ill a 111H; |
do, 1854, 100 a 1895; do. 1865, 1oe's 1925; |
do, 1865 January and july 1919 1914; do, 1867,
1O7sl 1903; 104os, registered, 1914 1917; 10-4Os
coupon, loiX 1915; June 1905, 1861 a 1O6'.; |
July 1905 1905 loe9s May compounds 1884, 49,:
August d. MO-; September do, III; October do.
1161s |
At the commencement of business the stock mar
ket was heavy in Tone and at the early session OF the
open board New York Central sold at 1le5S, Erie at
co., and Rock Island at %. At the FIRST regular |
board there was moderately large volume OF bust
ness transacted and the Western shares weak,
Rock Island having declined to e0ss and Northwest |
ern preferred 10 70, while the Milwaukee and st. |
Paul stocks were also very yielding, and Atlantic |
Mail suffered relapse to 80. is supposed that the
break in Rock Island was owing to some loans on |
the stock having been called In Oy an uptown bank,
which led 10 the stock being sold by the borrowers.
New York Central closed e lower than at the same
time yesterday, Michigan Southern Ia, Cleveland |
and Pittsburg 4, Cleveland and Toledo y, Rock |
Island ga, Northwestern preferred u, Fort Wayne,
a, Milwaukee aud ST. Paul 3, do preferred 2 Ohio and
Mississippi q, and Atlantic Mail 7, while Hudson |
River was u higher, Michigan Central u and |
Pacific Mail d. Government securities were |
firm but dun, at an advance OF - "a. |
After the call there was slight advance on |
u false report from Albany that the Erie bill |
had been tabled in the Senate, and at the open board
at one O'Clock Erie sold at 7os; New York Central,
IFS 1lsi4 Rock Island, o0a., and Atlantic Mail, IS.
At the second regular board the market was dun,
with downward tendency, and New York Central |
closed q higher than at the first regular board Erie