The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-18
FINANCIAL AND coMMERo GAL.


SUNDAY, Oct II, 1859.
The course Of the money market during the past
week renects two facts--frst, the superabundance
AZ funds succeeding the great shrinkage OF values
on the stock Exchange, and secondly the beginning
OF the long deferred outflow Of currency to the West.
II is difficult to say how long the speculation at the
Stock Exchange aud the demand for the movement
OF the crops viii remain united to render money
active Money has been this OF the year very
active. While the undoubted and general course Of
prices at the Stock Exchange upward the progress
thus far has been 30 slow IN comparison with
she decline IN the period OF panic that
It remains 10 be seen whether the Western demand
WIN not have been met and satisfied and money be
is way here again before the shrinkage In stocks
has been entirely made up by bull movement A
rough estimate puts the decline In stocks as COM
pared with the summer prices at not less than my
millions Of dollars. or course this estimate Is made
for the securities actually in the city held In brokers'
saes at night locked up In the vaults At the stock
Exchange. The shrnkage for the total capital OF
ali the enterprises whose securities are dealt Ia at
the beard was not less than two hundred millions.
Since the depth OF the decline there has been, how
ever. q recovery Of ten to twenty per cent,
% that the shrinkage Is now only thirty 70 forty
millions. In other words, there IL thirty to forty
millions capital now afoat IN Wan street than
there was in the height Of prices before the panic.
1t Is with this sum, margin, the city Is prepared
70 meet the fall demand from the West The slow
advance in prices Of stocks and the hesitation Of
buyers ever since the panic give warrant for the
assertion that before the movement at the Stock
Exchange can assume such buoyancy as to
again absorb this margin, the West viii have
received used and returned the money. Account
must also be taken OF the fact that the
West WIN not need so much money this year
as fast for the reason that the prices OF breadstus
have undergone SO large decline that only frac-
ton OF the sum which went last year will be wanted
now. The movement westward Is slow and behind
hand, owing, in the first place, to the aeness OF the
crops, and, secondly, to the delay In obtaining
market for them, the Eastern buyers fixing their
standard by the price Of gold and refusing to give
the figure demanded at the West. Indeed, for
week or more there was deadlock between the two
interests, which led to complete suspension OF
shipments; but the market having become frmef
here compromise seems to have been erected, and
towards the close OF the week there was decided
movement OF the crops In this direction. The money
market was precise index Of these facts From
Monday to Friday the rate call leans ranged from
four to seven pes cent; but on Saturday little busi
ness was done below five TO seven, with q general
demand for FUNDS at the intermediate figure. The
banks still cautious after the late crisis, and dis
posed to do more discOunting OF mercantile paper.
tue fact having been painfully proven 10 some Of
them that stock oans even at twenty to thirty per
cent margin are not always devoid Of risk. They
In very strong position to meet the fall
demand for currency from the West. While on the
one hand that demand cannot be as large as last
year, they better fortified In their surplus above
the legal reserve. Last year they encountered the
drain with q surplus OF less than fourteen millions
This year their excess above the legal reserve is
twenty millions. The bank statement OF Saturday,
compared with its predecessor, is without decided
feature Inasmuch as the loans have been decreased
and the increased 1t is not unfavorable and
the banks stronger for the business OF the en-
suing week than they were last Saturday. The gain
In reserve however, Is less than hundred thousand
dollars, but the deposits have fallen or half mil
Non the addition to the surplus beyond the legal re-
serve is over 900. Two of the changes are mex
plcable. The specie has fallen of about million and
the legal tenders increased million. As the gov
ernment sold three millions Of gold during the week
and the banks sent large shipments of currency to
the South in return for cotton, the specie should
have increased and the legal tenders decreased.
Doubtless there are undercurrents In the general
now OF business which have occasoned the transpo.
sition. The following the statements OF this
week and last