The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-10-28
FINANCIAL AND coMMERc iAL.
Tuesday, oct. N--eP. n.

being INADEQUATE to the demand even at seven per
eent IN gold and transactions were reported as high
as seven per cent in currency, with commission OF
half per cent for the remainder Of the week added II
d reported that two millions more in greenbacks
were withdrawn from the banks this afternoon IN
addition to 100000 which were sent South Dy q
single institution and this bus the beginning OF
the drain towards that section to move the colt on
crop simultaneously with which the demand on
the account Of the PORK crop win increase the
already existing stringency OF the Western money
markets and stimulate remittances Of currency from
this centre At the Clearing House this
evening the Bank OF the Commonwealth was
creditor $i,436,000 and the Bank Of the Republic
1891 900, but the other ACKNOWLEDGEMENT the banks
were unmportant. The Bank of Commerce ID I'M
derstood TO have invested about q million and hall
OF its three per cent certificates in currency at the
SGb-Treasury, and late In the afternoon this was
Interpreted on the street favorable to an abate
ment of stringency; but 1t must be remembered that
these certificates are already counted as portion
OF the legal tender reserve, and that their
exchange for currency does not strengthen
the banks, while 1t reduces the currency
balance in the SubTreasury, and II the iatter runs
Low it win have to be increased by additional sales
OF gold. Eank officers say that the prevailing strn-
gency due less to artificial causes than Is generally
supposed and that there would be an active demand
al seven per cent even III no special
were made to absorb currency, and it Is
there is nothing to prevent further distress
being occasioned by the operations OF an un-
scrupuIous combination. There Is no pros
pect OF the banks encroachipg upon their
serves. the directors and presidents almost with
out exception, are opposed to it in the present un
settled condition OF affairs and with the certainty Of
Southern and Western drain in view.
The difficulty OF borrowing money is, however
only one OF the disturbing influences at work. The
other Is the highly inflated condition OF the conse-
auent stock market and the decentralization
which Ia rapidly spreading among the bull
ranks. New York Central declined to 122
early In the afternoon and the Milwaukee and st.
Paul stocks also declined heavily, while Pacific Mail
was pressed for sale at one time at 121 and Fort
Wayne at 10Y, and panc-like state of feeling pre-
vailed. Erie, however, as usual OF late was the
engrossing feature Of the market and declined to
SSh; but just before the close u was bid up 20 40
Immediately after which II reacted 40S and closed
weak again. The statements oncially made by the
President OF the company to the Stock Exchange
committee yesterday are Of very damaging
character and it is feared that when they become
known to the English stockholders the result VIII be
that they will sell out under the impression that
1t would be useless for them to attempt to
compete with a printing press. 1t is evident
from what Mr.. Gould stated to the committee
thai flve millions more OF new stock will shortly
be issued, and that az much more as the com.
pany sees ft may be Issued In exchange for con-
vertble bonds, to the emission Of which
there is no limit This ia regarded as the most dan.
gerous feature OF the case and the banks and money
lenders generally refuse In consequence TO accept
ahis stock a collateral for loans unless to trnng
extent when mixed with other stocks. The dlstrust
Of the stock market generally and Erie particularly
has 1lAn haax
In time OF violent panic, and 1t is TO great extent
justified by the highly inflated prices now
current, which are SO far in excess OF real
values TO excite alarm among the bull cliques
II Ia therefore reasonable suppose that however
easy money might be. prices would have to be I'D
tusted q lower scale In order 70 avoid crash
Sulting IRON the market breaking under It's own
weight. The only stocks that not selling for
more than they really worth governments and
some OF the State bonds, and with the election Of
Grant an improved impetus will doubtless be impart-
Cd to these however great the decentralization In the
market for speculative stocks may be.
The gold market was steady all day its nuctua-
lions having been from 1914 TO 1ai1., with the
closing transactions prior TO the adjournment OF the
board At three O'Clock at 1871, following
which the premium remained without variation.
The borrowing demand for coin was wen supplied,
and loans made at lie, 1-32, lie and 3-64 per
cent per diem, and at q per cent per annum for
borrowing. The gross clearings amounted to
e1ls the gold balances to g. l2o 23s and the
currency balances to $s,e25.176. The Sub-Treasury
disbursed 9i4o in coin In payment Of interest, and
sold 100000 in coin at l34 T1.loo, the bids In all
amounting TO 5000, ooo
At the commencement OF business the stock mar
ket weak and unsettled and at the early session
Of the open board Erie sold at 3p3s, New York Gen.
tral l24, and Fort Wayne l123. At the hrst regular
board prices were without material change, and on
the call New York Central closed ~ lower than At
the same time yesterday. Michigan Southern 4,
Cleveland and Pittsburg II, Rock Island u, Fort
Wayne y, Ohio and Mississippi y, Pacific Mail ~,
Quicksilver "a Canton " Western Union Telegraph
and Missouri state skies y, while Erie was u
higher, Reading u, Cleveland and Toledo 4, North
western ~ preferred u, Tennessee skies, ex-coupon,
!, and Y. Government securities were u
Ak per cent lower aud dull At the open board as
enc O'Clock the market was weak ald excited, and
New York Central declined to H. Erie TO 3sk, Fort
Wayne to lloss, Pacific Mail TO 1915, Milwaukee and
st. Paul 10 OF aud the preferred stock 10 g. At tie
second regular board the panic-lise feeling pre-.
vously prevailing partially sub-ided AMI on the call
Erie closed . lower than at the brst regular board,
Reading u, Michigan Southern Il, Cleveland and
Toledo u, Northwestern 4, Milwaukee and 81. Iaui
preferred "a, Quicksilver i, Canton Il ana
Tennessee skies, now issue, X; while Rock
Island, was \ higher, Fort wayne x, western Union
Telegraph u and North Carolina skies, new, u.
Government securities were steady. At the open
board at halfpast three Eric sold at se,, New York
Central, 1237s 1861 Fort Wayne, l12k; North
western, se5., and Reading, oez Just before the
close Erie was bid UP 70 4o1, and the rest OF the
market sympathzed with the Improvement although
there transactions OF importance nearly all
the brokers nsvIng left the street. Eric soon re-
Apsed 10 sSs however, and al tie close quarter
90 Fix the market was weak again at the following
quotations, the tendency being still downward:-
Pacific Mail, l22h l2s; Western Union, 81 35ss;
New York Central, 124k o l2sk; Erie, 40 4o1.;
HUDSON River, 1881; Reading, so% 81; Michigan
boulhern sSh So; Pittsburg, SO a $50; Rock
Island los 1o5k; Northwestern, ses q s9a-do
preerfel. COZ a pnl.: Fort Warna 11naL a In. ahLa