The New York herald., 1875-08-16
FINANCIAL And COMMERCIAL.
The Prevailing Stagnation and Our
Way Out Of It.
The Crop Prospects Review of the Several
Markets-Firmness in Railway
and Government Bonds.
WALL STREET,
SUNDAY. Anpusl is 1R1h-


SUNDAY, August 15 1876.
The present condition Of the financial world is
OF remarkable quiet Wherever tho eye there is
to be seen sagnation in trade distrust and gut Of
money. These evils, however, are not without COM
pensation. In England we find the bank rate Of dis
count reduced to per cent yet consols
stronger In America all loans made the basis
Of l1sand per cent? yet government bonds and first
class railway mortgages are improving in tho public
favor every day. And whyH Because there is not at
this time if except real estate any encouragement
offered to the holders of capital to embark
in permanent ventures with an assurance
of safety and profit Two important periods OF specula
tion have occurred within comparatively expe-
rience. The first in America during the years Of
over-producton that Immediately followed the
Railroad building and manufactures then became vast
enterprises Furnaces and rolling mills multiplied
beyond example. The market everywhere stocked
with goods. Competition enormous, and money,
even more plentiful than now found abundant employ
mont. But at last, however, the
"LosT HEADS"
Great prosperity upset tho best judgment, and the
panic of 1878 found system OF expanded and ilegt-
credit that rotten ripe for the disasters that
ensued How great houses tumbled like pile OF
bricks; how $500 600 900 Of railway bonds dis
honored by the failure to their semiannual cou-
pons; how railway speculation being in of good
sense has been reduced until banks bankers look
with dismay upon the deprecated stocks that fill their
strong boxes; how thousands Of and women have
been thrown out of employment by the universal
stagnation--these the fragments of story that
need not be repeated here But they convey their les
SON
SECOND EXPERIENCE
OF this character in the case of Germany where
upon the restoration of peace, the payment of the
indulgence in speculation. Bubble companies were
organized in all directions, wages advanced,
travagance took the place of economy and exports
behind imports At last the crash that always
follows overspeculaton and the apathy that succeeds
the fever of excitement, and to-day find Germany
struggling to her financial strength of 1871 and
her people lamentng over lost opportunities.
From these two examples it is evident that
stagnation is of the penalties exacted from all
tions whenever credit is expanded to an unhealthy
degree and distrust to sound its warming
In large amount of capital has doubtless
been sunk contracted and time alone remedy the
evil We must have, first, adjustment Of values
and currency based upon the only true of
value-gold; second, our public pledges must be
deemed and paper promises made represent what
is written their face Then will follow the real sub
stantial recovery for which men hope-he reemploy-
consumption of our products by natural demand
EVENTS WEEK
financial circles have not been of great importance
The absence of many leading operators has led 10 a
dearth of business and brokers generally complained of
the prevailing duness. The failure Of the prominent
house Of Archibald Baxter Co. produced material
effect except in that it still further unsettles confidence
and causes uneasy feeling among all classes who have
valuable interests at stake Messrs Duncan. Sherman
Co. published preliminary statement of their affairs
which shows their total liabilities to be $4S72, 900
and their total assets 81, 900. 1t was
announced by cable from Paris yesterday that $1O0 900
of the letters of credit OF the firm had been redeemed
by Messrs, Drexe, HarJes & Co.
In speculative circles better feeling manifested
the close than any other period of the week.
most of the stocks moved more or less in sympathy
with rise in Western Union and Rock Island. Con-
cernng the former it said to be semi officially stated
that advance in the rate would take place on Mon
day Qo-morrow) under the influence Of which the
price was carried from 81 to S3 closing at about that
figure There were also various reports in circulation
regarding a consolidation of the Western Union with
the Atlantic and Pacific Telegraph Company.
The latter rose in consequence from 1s2< to 81 Tho
gain in Rock Island was from 1865 to 10sh the high
est figures being made yesterday The recent abroga-
ton of the arrangement that hitherto existed between
Jnc 81 LOUIS kansas Clty ana Northern ana the Kan
Pacific railroads, under which through Pullman
cars to be from ST. Lodis to Denver, via the
former road has resulted in great reduction Of pas
senger rates from that city to points west The ST.
Louis Kansas City and Northern rates from
half to fourths of former fares all points with
which that road competes with the Missouri Pacific.
This led to sharp decline in the stocks of the roads
named, but note after fall from 46 TO 43
in Missouri Pacific and from 13j6 to IL in
Atlantic and Pacific preferred, that sales
respectively made at 49, and H. Union Pacific fell or
to 71& but afterward advanced TO 1914 and closed at
72A. The Northwest and St Paul shares rose IA
per cent and closed at about the highest prices reached
Lake Shore uctuaed frequently between 59% and IA
closing at coz. Pacific Mail fell Off to SsH rose
$685. declined to 3s%, and finally rallied to 3sK ohos
from 1885 1917, but later partially reacted The
fluctuations in the remainder Of the list were less i'm
portant
HIGHEST AND LOWEST PRICES OF THE WEEK.
The following table shows the extreme fluctuations for
fhe weelS in the Leading shares