The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-05
FINANCIAL AND CONNER GAL.

to-day then at any time previously, the rates paid
for loans even government securities having been
rs hign as Y Z per cent until tomorrow, while In
sore instances :. per cent commission was paid on
rAixed colaterals In addition to per cent per
snnum In currency. The extreme pressure led
many OF the holders OF government securities
40 sell out with view to buying back at lower
agures and these sales exerted very depressing
eect upon the market the decline In the entire list
having been from one to one and half per cent
between tho opening ana the close There were not
wanting Indications that the principal dealers en-
couraged this realizing movement for the purpose
OF getting cheap stock, and the immediate result
OF this rapid decline will probably be .
sharp upward reaction, stimulated by those
who have assisted the downward course
Of prices for 1t is indsputabe that there never was
4 time when people were more DESTROYS OF buying
United States stocks on margins than they are at
present but the scarcity Of money Is insuperable
obstacle In the way OF speculation to all but strong
parties, and the latter have the ability to turn the
tide upward whenever they at. Although there
fore, prices may go lower temporarily the bears
would be unwise not to look for quick recovery.
The Clearing House Association held meeting at
NOON at which a resolution in favor OF allowing the
three per cent certificates TO be used as legal ten
ders IN making the exchanges between the banks
was adopted, provided the Treasury stamps them
proposed, payable IN United States notes on de-
mand, and the Assistant Treasurer has already ex-
pressed his willingness to do so to the extent of
twenty millions. Clearing House committee is to
confer with Mr. Van Dyke on the subject, and
It is expected that the stamped certificates
will be ready for Friday next. The probabili-
ties are however that the new viii give no
practical relief to the money market and 1t is doubt
full whether the banks will make general use OF them
unless driven to dire extremities. they will be
naturally as reluctant to pay them away among each
other as TO exchange them for currency at the Sub
Treasury. Supposing, however that they were will
ing to use them exclusively instead of legal tenders In
making their daily exchanges, it would relieve
them from the necessity of using in the
aggregate four or i've millions Of legal tenders for
the same purpose but it In no wise involves an ex-
pansion OF the currency, and If artificial means are
resorted to the certificates be 'locked up, just
Is easily greenbacks and the legal tender notes
demanded for them at the Sub-Treasury, thus in
ereasng the embarrassments of latter as well as
oil the banks. This action Of the Clearing House has
been dictated as much In the interest Of the gov
eminent as OF the banks, the presentation of
certificates for redemption reduces the currency
balance IN the Subrreasury correspondngly, and
forces 1t to make up the deficiency by sales Of gold;
and this OF course, reacts upon the money market
and only adds to the stringency. from which relief
sought by the conversion OF certificates. Congress
ought to have authorized a special issue OF United
States notes to take the place OF these certificates
last as they were redeemed, In the of Clear
ing House certificates proper; and this not hav-
fng been done the evil effects are before US.
Fourteen millions OF the three per cent certificates
nave been redeemed In this city since the lst OF Oc
tobsr and this practically involves a contraction or
NE volume OF the legal ten Ter paper anoa TO about
m equal extent cause SUFFICIENT OF itself to account
Tor much OF the prevailing strngency. Natural in
0uences still operating to diminish the supply or
money at this centre, the drain to the South and
Southwest to buy cotton being large while the re-
oelpts from other points very light notwithstanl-
ing the high rates which currency commands here.
The stock market has been weIk and demorazed
an day. and late in the afternoon seni-panic pre-
vailed Eric New York Central and Reading being
particularly yielding. II was reported late in the
afternoon that five millions OF new Erie shares
would be sold tomorrow, and there are Indications
OF great weakness In this stock, which may
carry II down to the depths predicted FOL
n by the bears at any time. New York
Central has weak undertone, and the large
holders were sellers during the day In order
10 relievel themselves. the banks and other money
lenders being distrusfu Of stock which is selling
% much above Its real value and therefore, unwili-
ing 10 lend on II, except with very wide margin,
Pacific Mail unaccountably weak, as 1t Is, or
ought 10 be, worth much more than il Is selling
5or. Mariposa preferred was the frmest OF the MIS-
oelaneous stocks. AT the close the railway share
market was weak and demoralized, and the
signs OF impending panic have never been
greater than they are at present, the bull
combinations which rallied the market with much
spirit yesterday mornng and on previous occasions
having apparently lost their unity, their courage and
their strength.
fha UQl1 M or md tvtth NOR pf
strength and the earliest sales were, at 1885,
following which there an advance TO l334,
but IRON this point there was a gradual
decline TO 1873, the closing transactions prior
80 the adjournment OF the board az three
O'Clock having been ~ this price. SIN later
Che pressure 10 sell increased and the latest quota
zion on the street was 1929 132A4. Notwitnstand-
ing the active borrowing demand for coin the pres
sure to lend III Of 1t, and loans were made
al a per cent per annun AMI lilo, l32 and l-Cl
per cent per diem for carrying and without interest
10 either borrower or lender. The gross c!earngs
amounted 10 ss3 40, 600, the god balances e
s9i the currency balances to 324o,S $40. The
Sub-Trcasury discussed 81 1lO.2o5 coin In payment
OF interest the public debt, and the steamer China
took out $4,000 In specie. During the latter part Of
the afternoon sales to the amount OF almost million
and hair were made by parties who are understood
10 have borrowed the gold stock collaleras, aud
whose object IL TO withdraw the proceeds OF the
from circulation FOR the purpose OF aggravating
the prevailing stringency.
At the commencement OF business the stock mar
ket was heavy aud at the early session OF the open
board Erie sold az 4os New York Central l25 (
and Fort Wayne fii4. a. the FIRST regular board
the marke. continued heavy "a tone but prices were
without material change ana New York Central
closed Z lower that ii thc time yesterday, Erie
~, Reading ~. Michigan southern /. Cleveland anu