The New York herald., 1868-04-11

oHned Erie selling at II, New York Central at l2os
ara Pacific Mail at ssH, but gold remained steaay'
1% being bid for 1t. In government securities there
were no transactions the street. and the business
ed the dealers was confined to filling few orders py
ail and telegraph. The market for them was, now
ever steady in tone Coupon hvetwenies OF 1862 were
nenlinay quoted at 111 111H issue OF 1856, 109x
Ioe<; new issue 1885, 1918 107A and issue 1867
ms 1OSx. There was no demand for money exceptto
replace two or three loans called n contracts matur
ing to-day having by resolution Of all the boards been
allowed to stand over until tomorrow. There was
No business Of Importance In the foreign exchange
market, provision for to-morrow's steamers having
been in nearly all cases made yesterday; but the
rates for sterling were firm on the basis Of 109A
1e0X for bills at sixty days.
The break of sixty-two and q half per cent In At
lAntic Mall which occurred yesterday, calls attention
tsthe risks which the banks incur in oanng specu
lative stocks, and admonishes them to be equally
careful of the character OF their coateras and the
sent Of their margins Who knows how soon similar
Sreak may take place In the high priced railway
shares, like New York Central and Hudson River,
which are sustained at current quotations only by
sxques, and If it does how will those who have
loaned money on them with ten or fifteen per cent
margin fareY The fall In Atlantic Mail is the most
alarming sign OF the times that Wall street has yet
Witnessed and how much the banks and other lend
have suffered by it remains to be seen; for 1t is
subject upon which the sufferers will preserve a
grave retcence as far as possible. 1t is however,
reported that the Third Avenue Savings Bank Is
among their number the president Of the latter
belng or having been director of the Atlantic Mail
Company. Rumor had it the street yesterday
that the bank in question was involved to
very large amount, but to-day the sum
has dwindled to less than quarter OF
Atnion Of dollars Whatever the amount
may be, however, the transaction, If it is
as represented, is very scandaous one, for the off,
eers Of savings bank commit fagrant breach Of
1Oty In loanng on any speculative securities and
Sgd investigation Of the affair by the State authori
ses is demanded, in order that the depositors may
know whether they are safe or not in entrusting
ther hard earned savings to the custody Of that in
sotuton. The banks generally should take warning
nom this instance to contract their loans specu-
latve stocks by exactng wider margins than they
have been accustomed to do and rejecting all but
securities Of undoubted value Bank officers in not
. few instances are known, for reasons best known
- themselves to give undue preference to cques
q oaning the funds Of their respective inst
tufs0ns; and during the recent stringency
many loans on stocks were called in without
the demand being complied with, from tile sneer ina
htity OF the borrowers to pay Off their loans; and
should panic overtake the market there would be
great danger Of the banks being left the virtual
owners OF large amount OF the speculative stocks
o winch uey nave uldue bufduCcs. IHcIc is uO
excuse for savings banks above all Others, loaning
SAsir funds anything but government securities,
which are subject to violent fluctuations and upon
which there Is more difficulty In effecting loans
tan any other kind Of stocks or property The out
s1de public, too, should be similarly admonished by
ths breakdown to leave the speculative railway and
steamship shares severely alone. The litigation In
Erie and Rock Island has demoraized the stock
market, and, with the exception Of governments,
ha flo afatu in vip
wing at present.
Those interested In the stock OF the Rock Island
hallway Company are specializing upon the prob
able results OF the conflict OF litigation and legislation
IN the The arrest Of j. F. Tracy, the president,
and Ebenezer Cook, the secretary was made In
Iowa on the sth inst, attachment for contempt
sned by the United States Circuit Court and yester-
day Judge Cardozo, of the Supreme Court here, ap-
pointed Mr. Hugh Smith receiver Of the proceeds OF
the sale OF the $1,000 shares Of new stock, but de-
clined to grant the motion to issue attachments
against the oricers Of the company on the ground
that no breach Of the Injunction granted had been
established by the affidavits submitted. With re-
spect to the recent action Of The State OF Iowa In
favor OF the company, he remarked in his opinion
tAaa the statute passed by the Legislature OF Iowa
claws Of Iowa. 1885, chap. 1877 cannot alone ratfy the
aot Of the directors in dlsposing OF the new stock
below par the State Of Iowa not having exclusive
Further, the certificates of the new stock do not
purport to represent stock Of the original Rock Island
corporation, created by the State of Iowa, but
assume to represent stock Of the consolidated COM
pany, consisting Of that corporation and the one
Termed under the laws Of Illinois, which gives the
hfter state quite as much control OF the present
matter as that Of Iowa. the act OF either alone
vu therefore not aid the defendants From this IL
may be inferred that the Rock Island party will en-
of et,,
act to that OF Iowa referred TO- in which event the
suits now pending in the case would be dismissed
The defendants have shown themselves TO be uu-
scrupulous enough to resort to any means legal or
Illegal, TO accomplish their purposes, speculative and
otherwise, and 1t Is evident that they mean TO
leave no stone unturned In their efforts 70
retain control OF the company and defeat
the present bull party in the stock. The
sympathies OF the public are, however, against
them. Some have sought TO trace parallel be-
tween this and the great Erie case; but as the
latter is question Of monopoly monopoly, and
public sympathy for ths reason Is decidedly with
che Erie as distinguished from the Vanderbilt side it
must be regarded as wholly different. The public
interests opposed to any one party, however ex
eellent In themselves having control Of the Ee the
New York Central, the Hudson River and the Iar
lem Companes and the Chamber OF Commerce Of
this city in its memorial 10 the Legislature to this
effect embodied the prevailing sentiment on the sub
iect outside Of the Vanderbilt clique in Wall street.
The latter, as a matter Of course. Ne bitterly
sowards the rival party and all who do not the
offensive in their behalf while the opposite side is
equally hostile and determined. The public cares
little or nothing for the result OF this great
Erie. contest a. stockobbing operation,
but 1t is of great importance to II that
the wholesome competition hitherto existing
Between the New York Central aud the Erie
Railway Companies should continue. For party,
and virtually man, to control the four lines re-
eued to would be TO wieid q political influence
which would override all obstacles to whatever
rates Of fare and freight the monopoly saw nt TO
sharSe, and past experience has invariably shown