The New York herald., 1873-10-20
THE STOCK MARKET.
Getting Back on Healthy Basis...The Fluc-
tuatiOnS Of the Past Week.
MONEY AND IT'S COURSE.
Government and Railroad Bonds-0pen-
ing and Closing Prices.
WALL STREET,

The advance by the Bank OF England oil It's rate
OF discount from to per cent, announced yester-
day, was in strict obedience to the time -honored
policy of the institution. The object Of its reserve,
unlike that which exists in our own country is to
meet sudden and unexpected demands, and on the |
strength OF its reserve depends much the public |
confidence. A bad harvest and large import |
trade, such as we now see may take from that |
reserve millions, to replace which the Bank OF |
England requires the use Of an effectual instru- |
ment. That instrument is the elevation OF the |
rate OF interest, which, being done, loanable |
capital begins its march to Lombard street from |
every financial centre the Continent. The effect
OF such rise s likewise apparent on the trade of
the country. Prices decline, imports consequently
diminish, exports increase but the balance IN |
bullion is almost Invariably again established.
Unless the Importation ceases and
THE FOREIGN DRAIN
upon the reserve is checked by advancing the rate
and at the same time making ready loans, domes-
tic alarm follows and an incipient panic may i'm
pend. AS the banker OF Europe, II not OF the world
England at various times has been compelled to
resort to the expedent referred to- but in the nex
iblity OF her banking system she has generally
found safety. Until, therefore, the drain is such
that it cannot be controlled and the credit of the
bank becomes impaired by its inability to respond
to the augmented demands for accommodations, we
need not look with apprehension to any contin-
gency worthy of being dignfed with the name OF
an English panic. True, days and weeks fre-
quently pass before the remedial process thus set
at work is effective; but as an Offset the land and
ocean telegraphs Of the world have in the present
instance enabled the bankers OF England to meas
uraby anticipate evils and prepare for their cor
rection. Doubtless degree of commercial dis
turbance will result from the sudden change that
hau han info huf fhara No ip,pra data
symptoms which indicate that
THE "oLD LADY OF TREADNEEDLE sTREET''
Is not still the mistress OF the monetary situation
as far as relates to her own welfare The influence
upon America Of this outpouring Of bullion has
been most sautary. without the English coin
that has been shipped our wheat crop might still
have been locked. With 1t we find grain moving
towards the sea at rate which is employing the
most active energies; the stringency in the West
ern money market removed, and the banks OF
Chicago, Cincinnati and st. Louis setting an ex-
ample In the resumption OF currency payments
which New York, with all her boasted strength has
not yet dared to follow And right here occurs the
pertinent question whether it is longer wise for
the strong banks OF this metropolis to continue
their defence OF the weaker by maintaining the
Clearing House combination Have not
THE LITTLE BANKS
been afforded sufficient time for recovery-f, in
deed, they possess any elements Of strength what.
overland is it not due to the mercantile community
to the work people aud the masses generally, that II
reasonable proportion Of the Banking Association
can resume their former mode OF doing business it
shall be done at once2 No event OF greater fnan-
cial Importance could occur at the present juno
ture. Above all other things it would restore con-
fdence, renew the faith OF men in each other, and
in our really healthy condition, bring out boarded
currency and set the wheels OF trade once more in
healthy circulation. IT. to secure an object
so desirable, somebody must 60 to the
wall, so let 1t be. II liquidation must
take place let it begin at once. The public
want the cloud removed at whatever cost, for
they feel that with the removal ofthe incubus there
will be chance to purify the entire system OF the
condition Of
THE STOCK MARKET.
There is little more to be said than has already
found expression in these columns. Brokers are
getting bravey out OF the woods, and speculation
is safer and more normal than 1t has been for
many months. Great operators no longer iDter-
pose their ponderous capital, and, through score
of agencies, mislead the judgment and thus scoop
in the ventures Of deluded hundreds. The i'm
mense blocks Of stock once held in the name OF
few have been broken up and distributed, and
chance offers TO the investor to
purchase at prices which promise reasonable
profit either on the sharp turns OF the market or as
permanent holding During the week there were
wide fluctuations as the result Of uncertainty at
tachng to q lawsuit, details Of which have been
published, because not only was much capital
at stake, but certain principles were involved to
set aside which would undermine in a measure
the practice Of the street. At the close, however,
there was
GREATER sTEADINEss
ana general expression Of feeling that, with the
exception OF two or three stocks, the list invited
speculation, and no influences were in sight which
could momentariy cause either a dangerous de-
cline or advance. That which did take
place, aside from the cause above men,
toned, was somewhat due to the calling
In OF loans and the difficulty OF carrying stocks;
but, with the turning OF the tide, the market be-
came more natural something like intrinsic values
were reached, and the rise and fall Of from two to
i've per cent, occasionally in as many hours, only
tended to stimulate business and enlarge the circle
OF operators. The principal
FEATURES OF THE WEEK
were western Union, Lake Shore and New York
Central, although the transactions In other stocks
were exceptionally large. The former went of
from 62zS to 45, but subsequently sold up to 69s,
when IL receded to 55X q SIX. New York
Central broke from 91 to So, and later re-
covered to 9ox. Panama fell Is per cent,
from 05 to so, and In the late dealings
sold within u per cent OF the former
quotation. Harlem fell from liz to 100. with sub
sequent sales up to 1loh. Wabash sold at 44,s
32A a 43x; Rock Island at 81 q s0H 92x Della
ware, Lackawanna and western at Sok so 90;
New Jersey Central at sI q sok ON 90; Pitts
burg at 70 74x so; Northwestern common at
l2k q slx AK Northwestern preferred at e4Jx
90 e7; st. Paul common at 37X % q SIX; st.
Paul preferred at 90 o so se; Ohio and Mississippi
at 27K q 2TX; Union Pacific at 1ox lSK
2ox c., O. and l. G. at AK Tx a FAX; Hannibal
and St. Joseph at FAX II a2A; Hannibal and st.
Joseph preferred ct 27K "a . 80 2Sk; Pacific
Han ct ssk > - slx: Erie ct AK . AK . ~