The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-06
FINANCIAL and COMMERCIAL.
The Business Outlook--Causes Of
Depression.
EVENTS OF THE WEEK.
Affairs in California-The Stock
and Gold Markets.
STRENGTH IN RIILWM And GOIERSTTH Bonds
wIll srsssr |


Notwithstanding various disturbing inhusncea. ne
close Of the week attended with quist ne esi
ELECTS Of the California disaster v,re ouiy temporarily
FELT here and there every % believe that thsy
have passed away. It's announced thai NE Hank "
California will eventually resuue business under
auspices, while the Merchants Exchangr nank whirh
closed its doors obedience 90 tho wisdom Whieh
always advises a suspension before run rather than
after IT, has published figures show the soiysury
the institution. The trouble the Parlnc slope IL
that naturally follows dsobcdience 81 tbe orainary
laws OF trade. Whether speculation a. % rold
a paper basis, he who buys What be- can.
not pay for must 10 ericf The character
OF the tool employed Is Of consequence provided ne
workman understands rs handling and aaapts u 90 its
proper In discussing THIS subject aud refuing
the arguments Of the nnatonisis who shrek their d.
light at the bursting Of what they cali gold babbes,
the editor Of the Financier aptly observes
TROUBLE Win cAnroRSA
has been not much the 81 gold the possession
OF too much Of H. The intOxicati0n Irodursi 10 the
presence Of the mines and the marvellous growth o. The
Pacific States has bcsct the sobcr,st Californian
who put his money into real estate and waited %
rise Chcag0s faith in herself has been somcN hat Do
rided but TO the Californian his State Is the direct
path TO the worlds East and he san Francisco
which has been city OF wonders since 10 begun Ia
Is49 with few score hufs becoming the central port
and metropolis OF the world and ready prove from
Nercator's map that this Is manifest destiny Tho old
lesson about the danger Of too rapid growth has been
repeated In California in the rest u the country and
The fact is that too much mOncy-no matter ~ what
knd-tendst to bcwilder people and set them rushing
In mad chase which invariably cnds, later,
In stumble and fall The universally and nerccness
Of speculation in mining stocks In san Francisco have
been understood in the Atlantic States Tor Cali.
iorna outdoes the of the world this every.
thing else, and really takes pride in doing RAsion
specializing in stocks on colossal scale and his coach
man and the servant girls In his kitchen Specializing In
the same stocks on small one, melted by his example
If not by his direct advice were types OF social
trcmes which not only met continually but not nfrc-
qucnty exchanged positions with bewilderng sudden
ness The mining shares were TO San Francisco what
the lottery is TO Havana-somethng which almost
everybody ventured TO try at one time another and
1t was extremely difficult to let alone.
BUSINESS OUTLOOK
is unchanged. While trade has not attained the vol.
which expected of at this season OF the year
the merchant in looking around him finds compensation
In the fact that business is being generally transacted
oil sounder basis and that If other failures they
will be due to old rather than recent mismanagcment
1t unfortunate in the process Of contraction which
going on that goods must sometimes be brought in
competition with those that forced sale under
the hammer Of the auctoneer and prices be thus helped
downward, but this is the penalty which always has
been and will be exacted from those who freely
pioy credit and yield to the temptations incident
period of false and prosperity What goes up
must come down; but the settling process Is not per-
petual and when the bottom reached the Is
at once normal and healthy. Gradually passing
through
THE ORDEAL OF TROUBLE,
but each succeeding will show clearer COM
mercial atmosphere than existed before
The transactions in the stock market during the week
have been large and at times much interest attached
the occasionally rapid fluctuations This especially
true of Western Union, which, after the failure OF the
negotiations with the Atlantic and Pacific Telegraph
Company, declined from S71l to Tx. subsequently.
however, the market became rmer and the close was
made at 1874 The principal rumor connected with
this stock that prominent operator who has been
accri dted with large holding of the same had I'M
loaded and gone 'shortn of the rest of the market
but the close of the week the recovery referred
10 caused change in the minds of
many persons, and led to free purchases in the belief
that higher prices would be established There is GER
ainly little opposition among the smaller operators to
sell short two per stock the quarterly payment
of which is at hand. Lake Shore was next in
point of interest and rcceded from 61S 5615 under
large sales. The prevalent feeling concerning this
stock is bearsh but 1t is usually the that when
much company is fonnd side some shrcwd ndi-
vidual steps on the other side aud makes
sudden turn that throws his former companions
into confusion and disnay. Pacific Mail
on the strength of its recent arrangement
with Panama, resisted the efforts drive it
below 36S. Its highest price during the week was 49,
and its closing price 36 The friends of both
pancs profess to be gratined by the settlement of the
political difficulties between Panama and some of the
South American States Eyie exceptionally higher
advancing from l5& to 17sS and closing at 1914 The
ascrbed to the expected favorable report the
English committed, and to general change in the
direction that will take place Northwest common
fell of from Al to 3sh, preferred from 5dl 537S,
St. Paul from 37;l to s5h, preferred from 64 6l,
Rock Island from 1851 10 1861, Union Pacific from
74s to 49, Michigan Central from Ga to GA Missouri
Pacific from ~ to 46R, and Hannibal and st. Joseph
common from 23& to % The recovery from the lowest
point in the general list equal to u "a per cent,
but this was not fully maintained at the close.
HIGHEST AND LOWEST PRICES WEEK.
The following table shows the extreme fluctuations