The New York herald., 1873-11-12
A Large Failure Reported
in London.
RIVALRY In DRY GOODS PRICES.
The Banks Gain Another Mil
lion To-Day.
A STRONG STOCK MARKET.
Money Easier-GOld Steady
Bonds Higher.
WALL STREET.

WALL STREET. |
TUESDAY Nov 11-6 p. M.
lis pIeasant 10 record any evidence OF improve
ment upon the terrible depression that has existed
Tor the last sixty days in the stock market. 1t IS
not agreeable. however, TO be compelled, in view
Of all surrounding circumstances as matter OF
Justice to the public to confess that the improve
nent OF to-day was temporary and artificial. II
there were no weakness in the external sitnation-
no signs of further shrinkage in values which are
Identified with the interests OF our banks, no dis
tnrbing influences in the commercial community,
no symptoms OF wde-spreading distrust abroad,
more failures impending or reported, no future
enshrouded IN gloom and giving forth no ray of
light, 1t would be easy to predict that to-day's
operations on the Stock Exchange mark the be-
ginning Of a new and
MORE PROSPEROUS ERA;
but-and the word is full OF signihcance-there is
nothing in the advance OF the prices OF the various
securities hereinafter recorded on which sub
stantial hope can be based a promise be safely
maze. First-The fierce contest now in progress
between the two greatest dry goods houses in
America Is full OF danger to every inferior mer-
chant. One OF the rivals having as ii is under
stood, announced his determination to sell goods
retail at lower price than the other sells
at wholesale, there must and necessarily will fol-
low general depreciation OF value that VIII affect
the entire trade. 1t is estimated that the decline
will amount $50 ooO 600 s25 ooo, 900. How will
This affect the banks? They hold
COMMERCIAL PAPER
as securities, on which they have not only granted
extension, but issued loan certificates After the
sacrifice and loss he is suffering, can the merchant
redeem that paper when the day ofpayment rolls
around or viii he go to the wall In the attempt to
raise money on q deprecated stockS Can he con-
tinus business on deprecated capital? In short,
does not this fight between the calico and muslin
magnates mean reduction, liquidation, failure?
Second-The situation in England and on the Con-
tinent is not encouraging. The advance in the
OF the Bank OF England OF itself means danger.
1t is now at figure which marks the dividing line
between precaution and panic. Such panic has
already been prognosticated. Letters have been
received from London, and merchants have re-
Gently arrived from there whose statements cor
roborate the prediction. They say that degree
Of unsoundness exists in
FINANCIAL CIRCLES
that can scarcely be measured; that the swapping
OF cord may bring down the fabric in tumbing
rBins; that France is the only sound country in
Europe. because her people are living within them
selves, saving something at the end OF each days
labor and investing only in their own securities;
hence that when monetary troubles commence
there win be a sweeping disaster. Already we
have tidings OF one London ialure-that Of the
arm OF William Afrel & Arthur Burns Il Co.,
metal merchants. True, the amount is only four
millions OF dollars-a bagatelle compared with
the monster "smash-upsn OF the United States;
but then VINO knows how many
BANKS, MINES AND MERCHANTS
are affected by even such catastrophe. Perhaps
II is the beginning OF the end. Interest on loans
like those OF Honduras, Turkey and Egypt are COM
ing due and with the decline OF values of first class
securities that has been reported, is ii not per-
tinent to doubt the ability OF even the banker OF
the world to meet its multitude OF Obligations
without shock that viii vibrate through all
financial centres 1t is to be borne in mind, how
ever, that the average Engshman is always full
OF conservatism, and he applies the principle not
less to his business than he does to his household
MS club or his politics. Hence, while there may be
shaking OF the Keystone dangerous for the time
being, there can be no permanent displacement OF
1t without producing revolution such as the world
has never yet seen.
COURSE OF STOCKS
to-day was without reference TO the above outlook,
which we have endeavored fairly to portray, un-
less-and the presumption is not out OF place
shrewd holders Of securities foreseeing danger, ad
vanced prices for the purpose OF a SALE Western
Union, for instance, was actively pushed upward
from 40 TO 54a with closing prices just per cent
less. Lake Shore opened at 62H and moved up to
6sx New York Central sold up from so1s 10 S3H.
The other stocks on the list were proportionately
strong, as win be seen from quotations elsewhere
1T is not improbable that tomorrow will witness
further attempt TO reach the highest
figures that spectators are willing to pay
either for the covering OF a short interest
or for permanent investment; yet In view or the
general situation financially and commercially, IL
VIII be marvel II the market does not YIELD
opedient TO the weakness that will probably mani
fest itself In some quarter within the next three
days.
THE MONEY MARKET.
Money was easy on call during the greater part
oI tne day AT 9 a per cent and closed at 4 per
cent. larger inquiry for commercial paper was
developed, although prices were irregular. Dis
counts were lower the rates, however depending
both on the borrower and his bills. Sterling ex
change was drmer. Prime bills were held at los
1oT sixty days and 1857 for short sight. legs n
brokerage, but good bills were u a x per cent
lower. Commercial bills were steady. Cables on
London were firm at 109 Continental exchange
was strong and in good demand. 1t is reported
that the DuQuesne Savings Bank, OF Pttsburg
Pa, and the Savings Deposit Bank, East Liberty,
suspended to-day.
opened at 107k and sold down to 1919. On loans
the carrying rates have been az per cent for
carrying, the final rate being per cent. The fol-
lowing have been the principal quotations In the