The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-04-16

So-u6y Ii only the precursor OF StLl groater
havoc in the railway share market, and the
prostration which has overtaken railway pro-
perry in England and France Is more than
likely to be experienced here. Sir Morton Peto came
over to this country In the penitude, to all appear
ances OF his wealth and power, but like Hudson the
railway king before him. he failed, and his collapse
was the most nglorious Of its kind we can remember
because 1t was shown that he had been wilfuy keep
ang up false appearances for years; and why are the
magnates Of our own Stock Exchange more exempt
than the two men mentioned were from fail-
nre This bubble. which has been growing
long must be pricked in the public interest; but
apart from that the natural tendency OF prices on
The Stock Exchange is downward towards legitimate
values. Government securities and ffrst class city
and railway bonds are worth what they are selling
for and therefore will or at least should not decline,
but the speculative railway and other stocks
selling far above their real value. No six per cent
railway shares are worth 49, and no eight per cent
ones worth 12e, and much less are non-dividend
peying stocks, under existing circumstances,
worth what they are selling for. We have been
warning the public for some months past OF the
panic with which the market was threatened, and
now that the danger is full upon 1t repeat ad
monton, especially to the banks. These institu-
tons are unfortunately loaded up with speculative
socks, upon which they have advanced more
tlan their real value, and they stand in
where tity are udDlt u DeCOuc Iue VlTtudl
owners OF many OF these securities at any time. We
have only to point to Atlantic and Pacific Mail and
the express stocks for instances in illustration and
when steamship stock goes down more than sixty
two per cent In single day 1t Is reasonable to infer
that railway stocks may go down far and fast
enough to sweep away all ordinary margins.
The banks should, therefore, in the interest Of
their deposors, look carefully to their loans, and the
Comptroller of the Currency should at examine
TO do by the National Currency act, and Congress
should amend the National Currency act 80 as to
make 1t unlawful TO loan speculative securities to
Che extent they have been hitherto doing. In this
way some OF the Wall street institutions may avoid
The fate OF the Credit M0bilier in France, which
failed with all Its capital simply because
OF the depreciation in value Of the stocks upon which
II had made advances. The borrowers were unable
20 take up their loans the Credit Mobiier became
the owner Of the coaterals, in which there was no
market The London banks were similarly saddled
with heavy load of speculative stocks, and hence
the failure OF OF their number In the panic Of
1865 The storm here is only brewing, and therefore
there is yet time for sail to be taken in before 1t
sweeps away the gaudy fabric that has been reared
10y the gamblers Of the Stock Exchange. The dstrust
OF money lenders is increasing, and the demand for
loans to-day was very sharp the legal rate in gold
being paid in not few instances. The banks are
ptSuuiuB w pcICcNc Tie uduStT Vi tnelr own Sluar
ton. and hence they very careful in
their scrutiny Of colaterals and margins,
as they well may be. Governments and other securi-
ties of undoubted value are, however, loaned upon
freely.
The gold market was dull and barely steady,
and the fluctuations were from 1881 to 1881,
with the closing transactions at 1881. Loans were
made at O per cent per annum and 1-32 3-64 per
cent per diem for carrying The gross clearings were
0aEo <xalAh aIo and fha
currsncy balances az, 737, 735.
Al the commencement of business the stock market
weak and unsettled, and at the early session Of
the open board there was q sharp pressure to sell
dong" stock, the aggregate Of transactions being
unusually heavy. New York Central declined to
ll6h, Erie $50, Rock Island SIX, Northwestern pre-.
ferred 71h, and Hudson River 1891. At the first
regular board the market was weak and excited
60 the verge OF panic and the pressure to sell In
creased, Rock Island, Northwestern preferred and
Hudson River being the most yielding OF the railway
shares The heaviest fall however, was in the ex-
press stocks Adams having declined from $50 to So
on the call against 65 yesterday morning, while
United States fell from so to 45h, and Merchants
Union to 25 against a2k yesterday. New York Gen.
,rs closed lower than at the time yesterday,
isre 2x preferred !, Hudson River 8, Read
ing 1, Michigan Southern ~, Cleveland and
P,usburg 9 Cleveland and Toledo 9, Rock
iNNnu ga, NOftHNtsttTu pIcltrTcu Toit
Wayne y, Milwaukee and st. Paul A. do. preferred
ONO and Mississippi x, and Pacific Mail IL. Gov
eminent securities were dull at q decline Of HaA.
After the call Erie sold at 66h and New York Gen.
trail at 1l3h At the open board at O'Clock Erie
sold at 67S 67}s; New York Central, ia 1lsh;
Rock Island, SIS $50; Hudson River, 124 and North
western preferred 6s a 6sH. At the second regular
board prices Slightly higher for Of the rail-
way shares, and the express stocks showed o recov
cry OF about three per cent. Erie closed u higher
tian at the first regular board, Hudson River u,
Reading y, Michigan Southern u. Cleveland and
Toledo u, aud Rock Island y, while New York Gen.
trial was IL lower, Cleveland and Pittsburg Y,
Northwestern preferred Il, Fort Wayne y, Milwau-
kee and st. Paul y, do. preferred u, Ohio and Mis-
sissippi, y, and Western Union Telegraph a. Gov
crnment securities were inactive but steady, although
On some instances eighth lower. At the open
BOARD at halfpast three Erie sold at 90 e7H; New
YORK Central. 1l4I; Rock Island, SEA se1s, North
western preferred, 69A; Michigan Southern, s7A q
SIX and Pacific Mail 50 s9'. During the remain
der of the afternoon the market feverish, and 1t
closed unsettled soon after six O'Clock at the following
quotations the indications being In favor Of much
lower prlces:-New York Central Hay ll4I4; Erie,
On; Reading, SIX SIX; Michigan southern. s7as5h;
Cleveland and Pittsburg, San SAX; Rock Island,
s6k se,l; Northwestern preferred, 691s 1915 Fort
Wayne, eek 100; Pacific Mall, ss>s ss,{; Quick
silver, rs; western Union Telegraph, S5h a S5A.
Government securities, although somewhat heavy
during the early part Of the day, owing to the none
tary stringency, were steady during the afternoon
and at the close the market showed an improving
tendency, the following quotations being then cur
rent;-Registered, 1881, lily 111k; coupon, 1881
Inv nix; 520's, registered, 1892 1o4
lo4H 5-2o's coupon, 1862, 1lox lloX; do, 1884
IOsx lo9; do, 1856, 1oetI q 1924; do, 1865
January and July, lo7A a io7H; do, 1867, 1917 {
.io7X; 1O-4o's, registered, 1913 1O1x; lo-4os
coupon, 1917 q 1Olx; June 1905, 1861 q 100
July 1905, 1861 a 1oe May compounds 1854, l1sh
August do, NIX; September do, III; october do
10Y.