The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-10-27
FINANCIAL AND CONNER GAL,


FINANCIAL AND COMMERCIAL.
r-~~~~~-~~~>~~~->s>~~~~
MONDAY, Oct. 26-6 p. NJ.
This has been o day OF great excitement ON the
Stock Exchange and the volume OF business was
very large particularly in Erie which fiuctuated
between 3s4 and $685. the pressure TO sell being
nnnsualy heavy. Late In the afternoon there was a
slight rally from the lowest prices touched owing TO
purchases by parties who wished to cover their
.snortn contracts before going home; but very
unsettled state OF feeling prevails, which
II liable to eliminate In panic at any
time. The Stock Exchange appointed a CON-
mittee to-day to inquire into the reports concerning
the Erie Company, and in their Official capacity they
called upon Mr. Jay Gould, its President and ascer.
tanned from him that the Company has issued since
the termination Of the, litigation with the Wander
bit party, ten millions OF convertible bonds, OF
which i've millions have been recently converted
into common stock, while the remaining fve mil
lions OF bonds liable to be similarly converted at
any time, and when this takes place the amount OF
the common stock outstanding viii be raised to
$A 100000. II therefore follows that the amount at
present issued Is $50 500 900. The President further
stated that in the event OF the proposed plan of
laying third ran along the entire line being carried
out further sum Of $4,000, 600 would have TO be
raised by convertible bonds and stock. The result
or this interview confirms the previous report
relative TO new stock coming upon the market;
but it was not generally known on the street
prior 10 the close OF business and is certainly cal
culated 10 excite fresh apprehensions among the
stockholders. Further orders to sell the stock on
English account were received by tho cable during
the day. and the banks and money holders generally
refuse TO accept collateral. II is therefore DIFF
hcult to carry and brokers rule refuse to buy IL
FOR their customers on margins. 1t is sur
prisng, under all the circumstances affecting
1t, that 1t has not gone lower, for it is evidently
entirely without support and In imminent danger OF
heavy break. The company's finances appear TO
be in depOrable condition for SO great corpora
ti0n, and Mr.. Gould informed the committee OF the
Stock Exchange that would require strong efforts
on the part.0f the management TO prevent it from
defaulting in the payment OF its acceptances on
the 1st OF January and falling into the hands
Of receiver. The losses sustained by the
stock in Wall street have been 30 heavy that
holders have been compelled In many instances to
cell out not only their Erie but other stocks, and
hence the market generally has been weakened and
90 great extent demoralized New York Central
declined to 12s at one time this afternoon and Pacific
Mal to 122, while the whole market was In a state
bordering panic. There has never, indeed, been
time in Wall street when it appeared in more crti-
cal condition, and this is aggravated by the ex-
treme monetary strngency.
There was no change for the better I'm the money
market, butt the contrary, during the forenoon it
was more difficult TO borrow than on Saturday, and
seven per cent in gold was freely bid for loans and
IN not few instances seven per cent in currency
and q commission were paid. Some lenders, how
ever, declined to receive more than the legal
currency. Towards three O'Clock there was as
usual OF late, considerable talk Of an abatement
Of the pressure, but there was little foundation
Tor this In fact The banks report that they are st
losing greenbacks and Of their number, the COM
mOnwealth, was creditor at the Clearing House this
morning for the unusually large OF s., 154 900.
The Manhattan was also creditor for $3.50, COO the
state Of New York for $as2,o0o the Commerce for
$2.1 900, the Republic for 64300O and the Leather
Manufacturers for $329,ooo, all Of which changes
reflect an artificial movement OF capital, and
bank officers express fears that the locking up
process will be persevered in until still greater strn
gency is experienced. In this not improbable event
prices can hardly fail to yield rapidly the Stock
Exchange, for they are OF present far above the
range Of real values, and however easy money
may become in the future they cannot be long
sustained. Government securities are, how
ever, an exception to the rule, as they
are relatively far cheaper than any others In
che country, and the disbursement OF the November
Interest the public debt will largely stimulate the
investment demand for them. The banks are un-
willing to encrcach upon their reserve in view OF
the danger OF consequent run on their deposits;
and the stringency OF the Western money Market as
well as the beginning OF the drain Southwark to
move the cotton crop, admonishes them to be eau
tons. The demand for discounts is increasing: but
these are difficult to obtain, and the best grade Of
commercial paper is quoted at from nine to twelve
per cent.
The gold market was active and it nuctuated be-
prior to the adjournment OF the board ut three
O'Clock at lsi, following which there advance
to la4ls 1s4ss. Loans were maze without interest
70 either borrower or lender and at 8 per cent
per annum for carrying ana LEA 1-32 and lie per
cent per diem and two per cent per annum for bor-
rowing. The gross clearings amounted to
$3.50 OO0 The gold balances to l693055 and the
currency balances to s3,617,ol4. The Sub-Treasury
discussed 40 in coin In payment OF interest our
ing the day. The imports OF specie at the port from
foreign ports last week amounted to $S,1s7, making
46le2,9 since the LIST OF January. The Assistant
Treasurer has advertised for bids for 5000 OF
per diem for five consecutive business days, begin
ming tomorrow, and these sales, by Withdrawing
100000 In currency from the banks daily, WIZ tend
TO increase the prevailing strngency.
comparison OF the last weekly statement OF the
associated banks OF this city with that OF the core
spending week in each OF the three previous years
Elbows the following changes:-
oct. 20, 1867. Oct. "a. 1865
Loans. $236, Sl071s Inc. I6,s5o,4i5
Specie. ............... 0161164 me-. 3,3o2.4i0
Circulation. .......... 33,o59OS0 Inc. 234 s5s
Deposits. ........... 173,064l2s Inc. i2.s91.TtT
Legal tenders. ....... ST, ISL e43 $40, 4g1
Oct. 81, 1868. Oci. -, 1865
Loans. S27i, 1875 456 Dec. 81, 3,3
Specie. ............... 7,s4S239 Inc. I,s05,s3A
Circulation. .......... 30,2434S- me. 1850 6OI
Deposits. o., s405s2 Dec. 377s4,735
Legal tenders. 5S,0ei,925 bee. 2i,353,i9l
Oct. %. 1865. Oct. -, 1863.
Loans..... s2lQ 9G5 go Inc. .$4,6i3dDi
Specie. ............... Hoi0,5Gl Dee. 5.35Ge.s
Circulation. 12g23T25 Inc. II. 40 2l3
Deposits ............. 1IS.63i,f11 Inc. 12,42l1B
Legal tenders. ....... S8,421,0E Inc. ID,2sis05
AT the commencement OF business the stock mar.
Ref was weak ana excited ana Erie sold down to
3sR: but al tue early session OF the board 1t solI at